The Italian Revenue Agency has recently expressed its position on the taxation of a foreign trust through two rulings issued in May, both concerning the same trust. These rulings deal with the tax recognizability and the taxation of Italian-source income earned by a foreign trust.
The cases concern a trust governed by English law, established by an individual resident in Italy with the purpose of segregating part of their assets — a non-qualified shareholding in an Italian joint-stock company — to be managed in favor of the wife, daughter, and other future descendants, the beneficiaries of the trust. The trust is irrevocable, and the settlor is qualified as an “excluded person,” meaning he cannot under any circumstance be appointed as a beneficiary of the trust. The trustee is a Maltese company, supported in its management by a Swiss Investment Advisor, and an Italian Protector is also appointed.
One of the rulings concerns whether or not the trust can be considered an autonomous taxpayer and not a mere conduit for Italian tax purposes, pursuant to Article 37, paragraph 3, of Presidential Decree no. 600/1973. The Italian Tax Authority affirms that, in this specific case and based on the information provided in the ruling request — which are cited in the Agency’s reasoning — the trust qualifies as an autonomous taxpayer and is not deemed interposed with respect to the settlor.
In a second ruling, the tax aspects related to Italian-source income earned by the foreign trust are addressed. Specifically, the following issues are examined: (i) the application of the reduced 1.20% withholding tax on dividends distributed by the Italian company to the trust; and (ii) the exemption of capital gains arising from the disposal of Italian shareholdings.
These topics will be discussed and explored in greater depth in the webinar on trusts.

Speaker
Pierpaolo Angelucci
Certified Public Accountant, Scarioni Angelucci, Associated Tax Firm, Milan

Cost
CHF 150.-
CHF 100.- per AMASTL and STEP members

Registration
https://bit.ly/webinar-17-06-2025

Registration deadline
Monday, June 16, 2025