Circular Letter No. 25/E Clarifies Italy’s New Carried Interest Regime

Volume 5 No 1    |   Read Article

By Andrea Tavecchio and Riccardo Barone (guest authors)

Early last year, the Italian government announced new rules regarding favorable taxation of carried interests. Graduated tax rates and social charges would be replaced by a flat 26% tax on investment income. Towards the end of the year, guidelines were published by the Italian tax authorities providing significant clarifications on the scope, requirements, and conditions under the new tax regime. Andrea Tavecchio and Riccardo Barone of Tavecchio Caldara & Associati, Milan, examine how the new regime will work in practice.  See more →