Foreign UCITS under anti-hybrid legislation
2025 · FISCALITÀ & COMMERCIO INTERNAZIONALE
The rules to combat hybrid mismatches could, under certain circumstances, produce significant tax consequences for Italian subsidiaries of foreign UCITS, given the different classifications that generally characterize such investment entities in the various jurisdictions involved. This risk area requires factual considerations that take into account not only the intragroup relationships involving the investee company in Italy but, more generally, the UCITS' operating requirements, the actual applicability of the subjective prerequisite of the anti-hybrid legislation, and the potential assimilation of distributions made by the UCITS as a form of inclusion. These considerations become even more sophisticated in the context of investment structures with multi-tier funds, the use of which appears to be growing among industry operators. The opportunity offered by the legislator regarding penalty protection in this regard should be welcomed, especially as a tool for managing tax risk. In issue 6/2025 of Fiscalità & Commercio Internazionale, we develop some considerations in this area. May 22, 2025: Italian-Source Dividends to Non-EU Companies: Between Convention Provisions and the Free Movement of Capital. Decision 509/2024 of the Pescara Court of First Instance (CGT) recognized the right of a US company to a refund of the withholding tax paid on Italian-source dividends exceeding the 1.2% rate, as it was discriminatory compared to the tax treatment that would have been reserved for companies located in EU/EEA countries, in light of the principle of free movement of capital. Without claiming to be exhaustive, in issue 5/2025 of Fiscalità & Commercio Internazionale, we delve into the principle of free movement of capital, from its origins to the main case law, in order to analyze its applicability in the context of Italian-source dividend flows received by companies located outside the EU/EEA. Download PDF Magazine: TAXATION & INTERNATIONAL TRADE Authors: Francesca Grandi Edoardo Casadei Francesco Di Giandomenico 22 May 2025