Edited by AM
The dreaded 20% withholding tax on foreign transfers that came into force on the 1st of February has been postponed. This new tax was a great concern for the international markets. According to the banks, they would have had to take a 20% withholding tax on all incoming bank transfers from abroad that were being transferred to personal accounts held in Italy. These amounts would then have been recorded on the tax return. The Inland Revenue, however, at the request of Fabrizio Saccomanni, the Minister for the Economy, ordered the suspension of the deduction and has made preparations for the repayment of the sums already deducted. At the same time the repeal of the new higher taxes has been prepared. Conflicting reasons have been given for the “postponement”, however, the decision of the Inland Revenue refers to “difficulties in application’, while the Ministry for the Economy cites “evolution of the international context”, referring to developments in the ‘area of cross-border tax evasion’, which has accelerated sharply, through the creation of a model of intergovernmental agreement.