ITALY Law and Practice Contributed by: Marco Valdonio and Gabriella Cappelleri, Maisto e Associati
The APA procedure is concluded: (i) in the case of unilateral APAs, with the execution of a binding agree - ment by and between the IRA and the Italian taxpayer; or (ii) in the case of bilateral or multilateral APAs, with the execution of a binding agreement by and between the IRA and one or more foreign tax authorities, as well as of a corresponding binding agreement by and between the IRA and the Italian taxpayer mirroring the transfer pricing method and criteria agreed upon between the tax authorities. During the term of effectiveness of the APA, the tax authorities are precluded from exercising their assess - ment powers with respect to the transactions covered by the APA. The office in charge of the administration of the pro - gramme has the power to assess if the taxpayer com - plied with the terms and conditions set out by the APA and if no changes occurred in the factual and legal circumstances founding the APA. Both unilateral and bilateral/multilateral APAs can be renewed at the request of the taxpayer. 7.2 Administration of Programmes The APA programme is administered by dedicated offices within the IRA. 7.3 Co-Ordination Between the APA Process and Mutual Agreement Procedures Italian laws do not provide for automatic co-ordination between the APA process and MAPs. Nevertheless, consistency is normally secured because both MAPs and bilateral/multilateral APAs are generally handled by the IRA. 7.4 Limits on Taxpayers/Transactions Eligible for an APA There are no limits on which taxpayers and/or transac - tions are eligible for an APA. Indeed, an APA applica - tion can be submitted by all Italian taxpayers regard - less of the size of the activity performed and of the kind of intercompany transaction to be covered, pro - vided that the provisions laid down by Article 110 (7) of the ITC apply.
The scope of bilateral and multilateral advance agree - ments may include not only transfer pricing but all cases of a conventional nature referring to enterprises. 7.5 APA Application Deadlines Italian laws do not provide a deadline to file an APA application even if the date of filing is relevant for the purposes of the period of validity for bilateral and mul - tilateral APAs. A mandatory deadline is provided for the submission of the APA renewal application. Indeed, pursuant to Article 10 of the 2016 Regulations, taxpayers willing to renew a unilateral APA must submit the renewal application 90 days before the end of the fiscal year in which the APA’s validity expires. The same deadline should also apply to the agreement executed by and between the IRA and the taxpayer following a bilateral or multilateral APA. 7.6 APA User Fees APA user fees are only necessary for the submission of bilateral and multilateral APA applications. The admissibility of the application is subject to the pay - ment of a fee equal to: • EUR10,000, where the overall turnover of the group to which the applicant belongs, is less than EUR100 million; • EUR30,000, where the overall turnover of the group to which the applicant belongs, is between EUR100 million and EUR750 million; and • EUR50,000, where the overall turnover of the group to which the applicant belongs, exceeds EUR750 million. The above-mentioned fees are halved for the request of an APA renewal. Specific regulations were issued by the Revenue Agency’s Director (Reference No 2021/297428) on 2 November 2021, in order to provide implement - ing measures for the payment of the fees due for the request of a renewal. Such specific regulations also clarified: (i) that for the determination of the overall turnover of the group, reference should be made to the latest consolidated balance sheet available at the date of submission of the application; and (ii) that in
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