The Italian Revenue Agency has just published for consultation the draft of a new circular on direct and indirect taxation of trusts.
The main news is the long long-awaited change in the Revenue’s attitude towards the settlement of assets into trust as far as the gift tax and inheritance tax are concerned: now it is fully aligned with the positions of practitioners and most notably the Italian Supreme Court. The tax is due only at the time of the final distribution of assets to the beneficiaries and not before.
It is a really good news as settlors can now establish their trust with the peace of mind that their actions will not be challenged by the Italian Tax Authorities.
Capital Trustees will continue to closely monitor the developments and to offer its expertise to take advantage of consistent wealth structuring and succession planning opportunities in Italy and abroad.