Article Of The Countries Double Taxation Agreement (Dta) Italy
The risk of double taxation exists in the following cases: However, the taxes collected in Italy by double taxation agreements are generally lower than those normally applicable. Double taxation in Italy: what is it? How can I avoid paying twice as much tax? The taxation of dividends in Italy and the United Kingdom can be applied under the following system: at a tax rate of 5%, if the economic beneficiary holds at least 10% of the social capital in the payment of the company`s dividends and, in all other cases, at 15%. The abolition of double taxation is done through a tax credit in the United Kingdom and in the form of a tax exemption in Italy. For more information on the double taxation agreement with the UK, you can also contact our law firm in Italy. This paragraph does not affect the corporation`s taxation on the profits on which the dividends are paid. Double taxation refers to cases in which two different countries have the right to collect taxes on income collected on their territory by the same subject. On the one hand, there is the country where the income is produced and, on the other hand, the state of residence for tax purposes. 5. The term “interest” used in this article refers to income from government securities, bonds or bonds, whether or not they are secured by mortgages, whether or not they have the right to participate in profits, as well as receivables of any kind, as well as all other income related to income from the tax legislation of the state in which the income is generated. but does not contain income covered by Article 10 of this agreement. 4.
Companies in a contracting state whose capital is held, directly or indirectly, by one or more residents of the other contracting or under that right state are not subject, in the first state, to a tax or related requirement, which is something other or more burdensome than the taxation and related requirements to which other similar enterprises of the first state are or may be subject.