Reference
Effective
1 January 2017
the withholding tax rate on dividends paid to companies resident in a European Union (EU) or a European Economic Area (EEA) white-listed country will be decreased from 1.375% to 1.20%.
Background
The 2016 Italian Stability Law approved on 15 October 2015 by the Italian Government was converted into Law 208 of 28 December 2015 (Disposizioni per la formazione del bilancio annuale e pluriennale dello Stato) and published in the Gazzetta Ufficiale no. 302 on 30 December 2015. It introduced, among other provisions, a decrease from 1.375% to 1.20% of the withholding tax rate applied on dividends paid to companies resident in a EU/EEA white-listed country. The new withholding tax rate will become effective on 1 January 2017 and has no impact on dividends paid during 2016.
Impacts on customers
During 2016 final beneficial owners being EU/EEA corporations may continue to apply for obtaining the 1.375% reduced tax rate by using the procedure described in Market Taxation Guide – Italy.
Further information
For further information, please contact the Clearstream Banking Tax Help Desk or Clearstream Banking Client Services or your Relationship Officer.
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1. Clearstream Banking refers collectively to Clearstream Banking AG, registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500, and Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248.