PARTICIPATIONS’ ATTRIBUTION TO TRUST BENEFICIARIES DO NOT REDUCE THE THRESOLDS
With regard to inheritance and gift taxes, transfers made also through family agreements or trusts, in favor of descendants in a straight line and spouse, of companies or shareholdings, through which control is acquired or integrated pursuant to Article 2359, first paragraph, number 1), of the Italian Civil Code are not subject to the tax on condition that the successors in title continue the business activity or hold control for at least five years.
This is what was clarified by the Italian Revenue Agency, with the response to Rule no. 571/2021.
With reference to trusts, following the circular in consultation of 11 August 2021, for the application of the donation tax we must refer to the deed by which the trustee distributes the trust assets to the beneficiaries. If the subject of attribution is the company or shareholdings as described above, the beneficiaries, if descendants in a straight line or the spouse of the settlor, will not be reduced the amount of the exemption allowance available.