ITALY Trends and Developments Contributed by: Maurizio Marullo, Giorgio Vagnoni, Francesco Amoresano and Fausto Consolo, LAWP Studio legale e tributario
It is therefore essential to determine when an individual is deemed resident in Italy for Italian tax purposes. Article 1 of Legislative Decree 209/2023 has sig - nificantly amended Article 2 paragraph 2 of the Italian Consolidated Tax Act ( Testo Unico delle Imposte sui Redditi , or TUIR) regarding the tax residence of individuals. For income tax purposes, from 1 January 2024, an individual is considered a tax resident in Italy if, for the majority of the tax period (ie, for at least 183 or 184 days, even if not consecutive), including fractions of a day: • they have their residence in the territory of the state as defined in Article 43 co. 2 of the Italian Civil Code (ie, “residence is in the place where the person has his habitual abode’’); • they have their domicile in the territory of the state (with domicile, for this purpose, being defined in Article 2 paragraph 2 of the TUIR as “the place where the individual’s personal and family relationships are primarily devel - oped”); • they are physically present in the territory of the state; and/or • (unless proven otherwise) they are registered in the registers of the Italian resident popula - tion. • These conditions are alternative – for an individual to be considered resident in the ter - ritory of the state for tax purposes, only one of these criteria needs to be met. • The final condition (civil registration) is a formal element which can be rebutted by evi - dence showing that the individual does not, in fact, have residence, domicile or physical presence in Italy. • The new rule introduces physical presence as a criterion for identifying tax residence for the
first time, while removing the (formal) registry requirement which, in the previous regulatory version, was the prevailing one. • Furthermore, the new Article 2 paragraph 2 of the TUIR materially changes the definition of domicile. Under the former rules, domicile was identified in accordance with Article 43 co. 1 of the Italian Civil Code as the place where the person“has established the princi - pal seat of his or her business and interests’’; it is now defined as “the place where the person’s personal and family relationships are primarily developed” thus shifting the focus from the professional and economic sphere to the personal and familial sphere. In view of these changes, to prevent double tax - ation and any ensuing tax litigation, athletes are advised to review these requirements in advance to determine whether their activities may trigger the application of Italian tax laws – not only when they have interests in Italy, but also when they move their interests abroad – ensuring that the relevant Italian tax registers are updated accord - ingly. Sponsorships and Advertising Related to Gambling and Alcohol: Restrictions and Trends Alcohol sponsorships and advertising under Italian legislation Sponsorship and advertising of alcoholic prod - ucts are subject to specific restrictions under Italian law, aimed at discouraging alcohol con - sumption, particularly among young people. Specifically, Law 125/2001 imposes a complete ban on the advertising of spirits: • from 16:00 to 19:00; and • in the periodical and daily press aimed at minors.
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