Italian association berates "unnecessarily heavy" tax changes

The changes affect closed-end investment funds known as società di gestione del risparmio (SGR), the most commonly used private equity fund structure in Italy, where Italian companies pay taxes in advance for the subsequent year in three instalments.

The decision taken by the Council of Ministers last week sees an increase in the advance payment of the total tax due, which will rise from 100% to 130% and must be paid by 10 December. This corresponds to a retroactive increase of Ires – the Italian equivalent of company tax – for 2013, in line with the changes due to be introduced in 2014.

For 2014, Ires will rise from 27.5% to 36% – representing an increase of around 30% – while the advance payment will rise to 101.5% of total taxes due (up from the usual 100%).

The Italian industry association Aifi has spoken out in protest, labelling the proposals "unnecessarily heavy" in a market already struggling to stay afloat, particularly given the impending transposition of the AIFM Directive and the associated compliance costs.

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• Topics
• Southern Europe
• Regulation
• AIFI
• Italy