Investment in Italy

Investment in Italydate the tax is paid, if the taxpayer voluntarily discloses the violation no later than 30days after the payment deadline• a penalty equal to 3 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 thedate the tax is paid (this is valid only if the taxpayer files a voluntary disclosure priorto undergoing assessment) provided the voluntary disclosure and payment take placewithin the deadline for filing the following year’s income tax return.Tax returns filed more than 90 days after the deadline are considered as omitted tax returnsand are subject to penalties of between 120 percent and 240 percent of the tax due. Insome circumstances, criminal penalties may be imposed.For unpaid or underpaid income taxes, a penalty equal to 30 percent of the unpaid tax isapplied, plus interest of 3 percent per year, calculated on a daily basis from the due date tothe payment date.6.6Other taxes6.6.1Net wealth taxThere is no net wealth tax in Italy.6.6.2Real estate taxA municipal tax on immovable property (ICI) is levied on the possession of immovableproperty (buildings, development land, rural land) located in Italy. Since 29 May 2008 thistax is no longer levied on immovable property used as a resident taxpayer’s primary home,except in the case of certain luxury residences.The taxable base is the notional cadastral income attributed by the immovable propertyregistry, multiplied by 100 for residential property and by 50 for business property (withsome exceptions).Depending on the municipality, the tax rates range from 0.4 percent to 0.7 percent of thevalue of the buildings and land, plus any improvements. This tax is not deductible for incometax purposes.6.6.3Gift and inheritance taxGift and inheritance tax is applicable to all Italian residents and also to non-residents whohave property in Italy. The tax rates are as follows:• 4 percent for beneficiaries directly related to the donor (i.e. spouse and children) or thebequeather. An exemption is given for the first EUR 1,000,000.00 of assets and cashtransferred to each beneficiary• 6 percent for brothers or sisters of the donor or the bequeather. An exemption is givenfor the first EUR 100,000.00 of the assets and cash transferred to each beneficiary64© 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.