IN ITALY: REVALUATION OF SHARES AND LAND WITH 11% SUBSTITUTE TAX
Italian’s 2020 Budget Law Draft extends also for year 2020 the deadlines (originally provided by art. 5 Law 28/12/2001 no. 448) for revaluating shares and land owned, outside the business, as at 1 January 2020 with the payment, within June 30th 2020, of an 11% substitute tax, due also for “non-qualified” participations and lands, instead of the 10% due the previous year.
The revaluation, increasing the tax value of the asset, means a reduction of the capital gain on transfers and noteworthy tax savings.
It is particularly significant the effect on beneficiaries in case of inter vivos acts or successions of the revaluated goods. It’s the same for the provision of shares in a trust.
In the first case, the recipient may assume, as tax value of the given participation, the same donor’s re-calculated cost, increased of the donation tax eventually due.
For succession mortis causa, instead, the heirs will have to consider as tax value the amount indicated in the Declaration of succession (which is, for participation, the net worth book value).
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