Exemption or refund under EU Interest and Royalty Regime

The European Union Interest and Royalty Regime provides for an exemption from tax on interests and royalty payments made between associated companies within the European Union. It aims at eliminating double taxation in cross-border payments between companies belonging to the same group.

Taxpayers can require the exemption from Italian tax on interests or royalties paid by Italian residents or permanent establishment located in Italy to a resident company or permanent establishment located in another Member State or claim the refund of the Italian tax withheld in case the exemption regime has not been directly applied.

 


In case of refund claims, taxpayers have to submit the request within 48 months from the date on which the tax was paid or withheld at source and send it to:

Agenzia delle Entrate – Centro Operativo di Pescara – via Rio Sparto, 21 65129 Pescara, Italia
Fax: 085/ 52145
Email: cop.pescara.rimborsinonresidenti@agenziaentrate.it

In some cases and when the withholding agent agrees, the same forms can also be used for the direct application of the conventional benefit.

Further information about EU Interest and Royalty Regime here (http://ec.europa.eu/taxation_customs/business/company-tax/taxation-crossborder-interest-royalty-payments-eu-union_en)

Legislative references


Directive 2003/49/EC incorporated into Italian law by Legislative Decree 143/2005

 

Provvedimento del 10/07/2013 (IT)
Approvazione dei modelli di domanda per il rimborso, l'esonero dall'imposta italiana o l'applicazione dell'aliquota ridotta sui redditi corrisposti a soggetti non residenti in forza delle Convenzioni contro le doppie imposizioni sui redditi, della direttiva del Consiglio 90/435/CEE del 23 luglio 1990 (direttiva "madre-figlia") e della direttiva del Consiglio 2003/49/CE del 3 giugno 2003 (direttiva "interessi e canoni"), nonché approvazione del modello di attestato di residenza fiscale per i soggetti residenti