ITALY Law and Practice Contributed by: Marco Valdonio and Gabriella Cappelleri, Maisto e Associati
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 rel - evant for the purposes of the application of roll- back mechanisms for bilateral and multilateral APAs. A mandatory deadline is provided for the sub - mission 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 valid - ity expires. The same deadline should also apply to the agreement executed by and between the IRA and the taxpayer following a bilateral or mul - tilateral APA. 7.6 APA User Fees APA user fees are only necessary for the submis - sion of bilateral and multilateral APA applications starting from 1 January 2021. The admissibility of the application is subject to the payment 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 imple - menting measures for the payment of the fees due for the request of a renewal. Such specific regulations also clarified (i) that for the determi - nation of the overall turnover of the group, refer - ence should be made to the latest consolidated balance sheet available at the date of submis - sion of the application; and (ii) that in the event of the submission of several requests for bilat - eral or multilateral APAs with different states, the applicant shall pay the fee, as determined by the rules listed above, for each bilateral application or for each foreign country involved. No fees are required for unilateral APAs. 7.7 Duration of APA Cover The conclusion of a unilateral APA binds the par - ties for five years starting from the fiscal year in which it is signed, provided that no changes occur to the factual or legal conditions which constitute the premise on which the clauses of the agreement are based. As for bilateral or multilateral APAs, these are binding according to the agreements reached with the foreign tax authorities and starting from the fiscal year in which the application was submitted. The dura - tion of bilateral or multilateral APAs is agreed by the contracting competent authorities, and the tendency of the IRA is to propose a duration no longer than five years, aligned with the maturity of unilateral APAs. 7.8 Retroactive Effect for APAs Unilateral APAs can have retroactive effect ( “roll- back” ) for one or more fiscal years preceding the effectiveness of the APA still open to tax assess - ment, if (i) the factual and legal circumstances on which the APA is based also existed in previ - ous fiscal years, and (ii) no tax audits (access,
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