Newsalert: Amendments to the deductibility regime of the interest expenses introduced by Legislative Decree 29 November 2018, No. 142 (“ATAD Decree”)

Chiomenti Tax Department has edited a Newslaert dedicated to Amendments to the deductibility regime of the interest expenses introduced by Legislative Decree 29 November 2018, No. 142 (“ATAD Decree”).

The Decree – aimed at implementing the Council Directives (EU) 2016/1164 and 2017/952 – has replaced Article 96 of the Italian Income Tax Code (“TUIR”), substantially changing the passive interest deductibility regime, yet without changing the overall functioning of it.

The new regime will apply starting from the tax period subsequent to the one in progress as of 31 December 2018.

Further, by means of a peculiar legislative technique, Law 30 December 2018, No. 145, published on the Official Gazette on 31 December 2018 (the “Budget Law 2019”) has restored the full deductibility regime of the interest expenses relating to mortgage bank loans secured by real estate assets borne by companies whose main activity is the leasing of real estate properties.

Download the dedicated Newsalert for an analysis of the subject