News for EU and EEA Investment Funds Investing in Italian Shares

Recent legislative activity in the Italian Parliament includes a draft Budget Law for 2021, which is expected to introduce a tax exemption on Italian-sourced dividends and capital gains investments by EU and EEA funds.

This proposition has positive implications for any qualifying funds as of January 1st, 2021. The approval of this Budget Law would effectively remove the largest tax obstacles barring direct access to the Italian market by any EU and EEA investment funds. This exemption could not only encourage new entrants into the Italian market but also make eligible for potential reclaim any excess withholding taxes on dividends distributed and capital gains realized as of 1 January 2021 by relevant portfolio investors and private equity funds.

As always, Acupay’s dedicated tax Operations team is here to help you navigate the complex and ever-changing landscape of cross-border tax. If you would like more information on how we may serve you in these efforts via any of our channels below, please don’t hesitate to reach out to us at ateam@acupay.com.