Italy: Draft budget law 2021

24.12.2020

The Italian government issued an updated version of the draft budget law for 2021. One of the expected impacts of this draft law is the exemption of Italian withholding tax on dividends paid to eligible EU/EEA investment funds.

The Italian budget law is currently being reviewed by the Italian parliament and is expected to be approved by the end of December 2020.

If approved in its current version, the exemption for EU/EEA investment funds should be applicable to dividends paid as of 1 January 2021.

We continue to monitor the situation and will provide further information as it becomes available.

This Taxflash is intended to provide customers with general information gathered from different sources that are generally believed to be reliable. Clearstream Banking S.A. does not guarantee the accuracy or completeness of the information and does not undertake to keep it up to date. Use of the information made available in this Taxflash is at the customer’s own risk and Clearstream Banking S.A. its subsidiaries and affiliates expressly disclaim any liability for any errors or omissions