Investment in Italy

Investment in Italy6.5.2DeadlinesFor individual taxpayers, the tax year is the calendar year.Income tax is generally due by 16 June of the subsequent year; however, the ItalianRevenue can accept delayed payments with interest. The Italian income tax return must befiled between 1 May and 30 June; this deadline is extended to 31 July if the tax return isfiled electronically. The deadline may be extended further by the Italian government.6.5.3Anti-money laundering rulesRegardless of their obligation to file an income tax return, all Italian tax resident individualsmust be compliant with exchange control regulations in Italy and consider whether they alsohave to declare their foreign investments and/or transfers of cash and shares to and fromabroad.Exchange control reporting is required if an Italian tax resident individual transfers cash orshares in excess of EUR 10,000.00 (or the equivalent amount in foreign currency) to or fromItaly. An Italian tax resident individual may be exempt from this formality if the paymentsare made through an authorised broker resident in Italy, as that entity will comply with thereporting obligation on his behalf.An Italian tax resident individual is also required to report any foreign investments higher thanEUR 10,000.00 (or the equivalent amount in foreign currency) held outside Italy; and any transfersto and from Italy which have had an impact during the calendar year on his foreign investments.Such items must be reported through Section RW of the Italian tax resident individual’s taxreturn. There are severe penalties for failure to complete this section of the tax return.6.5.4Payment of taxIncome taxes have to be paid as described below.• by 16 June of each year the taxpayer must pay the balance for the previous calendaryear and the first advance payment for the current year. The first advance paymentamounts to 39.6 percent of the taxes paid for the previous calendar year• by 30 November of each year the taxpayer must pay the second instalment, equal to theremaining 59.4 percent of the taxes due for the previous year.A 30 percent advance payment for the additional municipal income tax must be paid togetherwith the balance of taxes due for the previous year.6.5.5PenaltiesIf the tax return is filed between one and 90 days after the deadline, a penalty of EUR 21.52is due. A much higher penalty is applicable when the late tax return includes a foreigninvestment return (section RW referred to in 6.5.3 above).If any tax is due, the following penalties for delayed payments are applicable:• a penalty equal to 2.5 percent of the unpaid income tax is due, plus interest of 3 percentper year, calculated on a daily basis from the date the tax should have been paid to the© 2012 KPMG S.p.A., KPMG Advisory S.p.A., KPMG Fides Servizi di Amministrazione S.p.A., KPMG Audit S.p.A., Italian limited liability share capital companies, and Studio Associato Consulenza legale e tributaria, anItalian professional partnership, are member firms of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.63