Overseas loans from Italian banks subject to foreign taxes
Pursuant to article 15 of Decree of the President of the Republic of Italy No. 601 of September 29 1973, as amended and supplemented, medium- and long-term bank loans and any act, contract or formality related to these or to their performance amendment or termination are exempt from stamp duties, registration taxes, mortgage and cadastral taxes and other minor duties. Instead they are subject only to an imposta sostitutiva payable by Italian banks at the flat rate of 0.25% (a lower percentage is applied for specific transactions, like, for instance, export credit loans) on disbursed amounts.
In reply to a formal query raised by the Italian Banking Association (ABI), the Regional Office of Revenue for the region of Lazio of the Ministry of Finance has stated, in Resolution No. 45 of April 10 2000, that medium- and long-term loan agreements entered into by Italian banks outside Italy are subject to any applicable foreign taxation provisions instead of the imposta sostitutiva regime. As a consequence, the umbrella of exemptions provided under this regime will not be applicable and any stamp duties, registration taxes, mortgage and other taxes that would normally be payable in Italy should still be payable.