Italy Tax Agency Clarifies Taxation of Capital Gains Under DTA With Germany

The Italian Revenue Agency Aug. 16 issued Letter No. 418/2023, clarifying the taxation of capital gains from the sale of an equity investment in an Italian company, under the 1989 DTA with Germany. The taxpayer, a fiscally transparent German partnership, intended to sell its 100 percent interest in the share capital of a company resident in Italy. The taxpayer sought clarification as to whether the entities comprising the taxpayer could invoke the exclusive taxation of capital gains in Germany. The tax agency clarified that the capital gains derived from the sale of the total shareholding in the Italian company is ...