ITALY Law and Practice Contributed by: Marco Valdonio and Gabriella Cappelleri, Maisto e Associati
• Council Directive (EU) 2021/514 (DAC7), which provides for the automatic exchange of information regarding platform operators with respect to sellers in the sharing and digital economy and adds, inter alia, some rules regarding the timeline and the subject of the information to be communicated with respect to tax rulings and APAs. 6.2 Joint Audits Italian laws provide certain instruments of advanced administrative co-operation with for - eign administrations that carry out control activi - ties on the correct fulfilment of tax obligations. It is important to note that Article 3 of Legis - lative Decree No 13, dated 12 February 2024, mandates the introduction of specific forms of co-operation between domestic and foreign administrations and the reorganisation of exist - ing co-operation mechanisms. Significant atten - tion is given to joint audits between administra - tions of different countries, through amendments to Articles 31-bis 3 and 31-bis 4 of Presidential Decree 600/1973. On the basis of this reform, it has been intro - duced on the one hand that, (i) in the event of common or complementary interest with respect to one or more taxpayers, the Tax Auditors may conduct simultaneous audits with the tax administrations of other member states or third jurisdictions with which a bilateral or multilateral treaty permitting this is in force (subject to the accession of the foreign authorities), each in its own territory, for the purpose of exchanging information and, on the other hand that, (ii) in the event of common or complementary interest with respect to one or more taxpayers, the Tax Auditors may request the competent authority of another member state or several member states to conduct a joint audit with respect to such taxpayers. The Tax Auditors may enter specific
arrangements for the activation of joint audits with the tax authorities of third jurisdictions with which a bilateral or multilateral treaty permitting this is in force. 7. Advance Pricing Agreements (APAs) 7.1 Programmes Allowing for Rulings Regarding Transfer Pricing In Italy there is an advance agreement pro - gramme (APA) allowing taxpayers with interna - tional activities to: • determine the most appropriate transfer pric - ing methods and criteria applicable to the transactions carried out with related parties, according to Article 9 of OECD Model Con - vention as provided for by Article 110(7) ITC (APA); • define the entry or exit value of assets when the entity transfers its residence in or out of Italy; • if a non-resident company starts a new busi - ness in Italy, assess in advance whether the conditions for permanent establishment to exist in Italy are met, before the business starts; • define the tax law provisions, including DTTs provisions applicable to cross-border items, among which the tax treatment of income (such as dividends, interests, royalties or other income items) paid to/received from non-resident companies; and • define the attribution of profits to a perma - nent establishment in Italy of a non-resident company or to a permanent establishment in another State of a resident company. APA programmes can be (i) unilateral, when they involve only the taxpayer and the IRA; or
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