Law Decree 30 April 2019 no. 34 introducing urgent measures for economic growth (“Growth Decree”) was converted into Law 28 June 2019 no. 58 with amendments. The conversion Law was published in the Official Gazette on 29 June 2019 and entered into force on 30 June 2019.
LED Taxand summarises hereinafter the following selected news introduced by the Growth Decree, which could have an impact on multinational enterprises:
1. tax neutrality for real estate companies in securitisation transactions;
2. mandatory consultation of the taxpayer before the tax assessment;
3. Simple Investment Company (S.I.S. – Società di Investimento Semplice);
4. exchange of shares by contribution;
5. reduced CIT rate on retained earnings.
Tax neutrality for real estate companies in securitisation transactions.
Article 23 of the Growth Decree modified article 7.1 of Law 30 April 1999 no. 130, introducing relevant news regarding the tax treatment of real estate companies in securitisation transactions (“Reoco”), which operate for the exclusive benefit of the securitisation transactions. In particular, the Growth Decree provides that assets and rights acquired by Reoco in the context of a securitisation transaction are segregated from Reoco’s assets. Consequently, from a direct taxes viewpoint, the income deriving from the management of these segregated assets is not taxable at Reoco level nor at the level of the securitisation vehicle (“SPV 130”). In addition, fixed registration, mortgage and cadastral taxes apply: (i) to the transfers of assets and rights to Reoco and (ii) to the subsequent transfers of real estate assets from Reoco to entities that carry out business activity, provided that the purchaser declares that it will transfer them within 5 years from the acquisition.
Therefore, if carefully structured, these transactions could be tax neutral for direct tax purposes (at SPV 130 and at Reoco level as well as at the level of the holders of the notes issued by the SPV 130) and for indirect tax purposes.