Legislative Decree 139/2024 has introduced significant changes to the taxation of gifts and inheritances, with a particular impact on trusts, corporate holdings and the transfer of businesses. Below you will find answers to the most frequently asked questions on these new tax rules.
How is a trust taxed under the new legislation?
The legislation distinguishes between global taxation (where the settlor is resident in Italy, covering all assets regardless of location) and limited taxation (where the settlor is resident abroad, covering only assets situated in Italy). The tax falls due at the moment of the definitive transfer to the beneficiaries, who must self-assess and pay it within 30 days.
What are the new provisions for early payment of tax on trusts?
It is now possible to pay the tax at the time assets are settled into the trust, calculated on the basis of their current value and the relationship between the settlor and the beneficiaries. This payment is final and non-refundable, even if the assets are ultimately not transferred to the beneficiaries.
Do the new rules also apply to trusts already in existence?
Yes, the legislation applies retrospectively, ensuring equal treatment between trusts already established and those newly created, and opening up new opportunities for tax planning.
How does the taxation of transfers of corporate holdings and businesses change?
The decree amends Article 3, paragraph 4-ter, of Legislative Decree 346/1990, exempting from tax gratuitous transfers of businesses and corporate holdings to spouses and descendants, provided that:
The business activity is continued for at least five years in the case of a business transfer.
Control over the holdings is acquired and maintained for at least five years.
Does the exemption apply only to Italian companies?
No, the exemption also covers transfers of shares and quotas in companies resident in the EU or EEA, on the same conditions as those set out for Italian companies.
Does an increase in a controlling holding benefit from the exemption?
Yes, where a party increases their controlling holding in a company limited by shares, the tax relief remains applicable. Moreover, it is not necessary for the company to be carrying on an actual trading activity at the time of the transfer.
These changes make careful tax planning essential. For further information and tailored strategies, it is advisable to consult an independent financial adviser who works in collaboration with dedicated specialists.