• Service: Tax, Global Compliance Management Services, International Tax
  • Type: Regulatory update
  • Date: 8/13/2013

Italy - Exit tax for companies transferring tax residence 

August 13: Italy’s Ministry of Economy and Finance issued a decree containing regulations to implement the revised (2012) Italian “exit tax” regime for companies that transfer their tax residence from Italy to another EU Member State.

The regulations (Italian) are contained in a decree dated 2 August 2013, which was published in the Italian official gazette on 12 August 2013.


The Italian “exit tax” regime was amended in 2012, to comply with a judgment of the Court of Justice of the European Union (CJEU) in National Grid Indus BV (C-371/10, 29 November 2011).

The CJEU found that the Italian exit tax provisions were not compliant with EU tax law.

Under the amended tax law provisions (article 166 of the Italian income tax law), an Italian company that transfers its tax residence to another EU Member State or to European Economic Area “white list” countries (i.e., EU Member States plus Iceland and Norway) may elect either for:

  • Immediate payment of taxes due on the unrealized capital gains relating to the transferred assets, or
  • Postponement of the tax payments to the time when gain on the transferred assets will be realized

New rules under August 2013 decree

The implementing regulations provide that at the time of the corporate migration, the taxpayer may elect for:

  • Immediate tax payment (under a “deemed realization” method)
  • Tax payments in installments (plus interest) over a 10-year period (under a deemed realization—alternative payment method)
  • Postponement of the tax payment (until transferred assets are realized)

To elect for the tax deferral treatment, taxpayers must arrange for a guarantee (that would guarantee payment of the tax to the Italian tax authorities).

The new decree also provides certain details, including information concerning:

  • What type of assets/items can benefit from the tax deferral
  • How capital gains are to be determined
  • How tax losses (if any) are to be used in light of the corporate migration
  • The tax deferral is available with respect to the transfer of an Italian permanent establishment (PE) to another EU/EEA “white list” country (apparently in recognition of subsequent CJEU exit tax judgments in cases involving Portugal (C-38/10) and Spain (C-64/11))
  • Situations that may “interrupt” the tax deferral

The regulations also anticipate that additional future guidelines will be issued by the Italian tax authorities concerning certain formalities for the tax deferral, as well as guidance providing rules for installment payments, for periodical monitoring of the capital gains, for guarantees to be granted, and other measures.

KPMG observation

Tax professionals in Italy have observed that practically speaking, despite the August 2013 decree, taxpayers are currently unable to opt for this new exit tax regime.

For more information, contact a KPMG tax professional in Italy:

Roberto Romito

+39 06 809 631

©2014 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. All rights reserved.

The KPMG logo and name are trademarks of KPMG International.

KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.

The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Direct comments, including requests for subscriptions, to
For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at:

+ 1 202 533 4366

1801 K Street NW
Washington, DC 20006.


Share this

Share this


Subscribe to receive the latest TaxNewsFlash email alerts (you must select the option for TaxNewsFlash)

Already a Subscriber? Login

Not a member? Subscribe now