Italy – Changes to IPT prepayment and new IPT exemption

 

Further to our Tax Alert released on the 7 th November 2017, the Italian Parliament have approved the changes to the IPT prepayment, with the deadline moving from the 16 th of May to the 16 th of November each year. The percentage increase is however higher than anticipated. Following the Government’s proposal to increase the rate from 40% to 55% in 2018 and to 70% in 2020, the final 2018 Budget Act provides for the prepayment rate to rise to 58% in 2018, 59% in 2019 and 74% from 2020 onwards.

The Italian Parliament have also passed the IPT exemption for insurance policies covering natural disasters for residential real estate with effect from contacts underwritten on or after 01 st January 2018.

 

If you have any questions, please contact your client team or Alessia Mecozzi at Alessia.Mecozzi@fiscalreps.com