On August 5th, 2024, Italy issued the Legislative Decree 108/2024, introducing the deadline of October 31st for the yearly tax return filing. This measure impacts the timing for the preparation of the transfer pricing documentation.
When and how should it be prepared?
This period affects the submission of requested information on transfer pricing, which is increasingly being monitored by governments.
Therefore, in order to formalize the registration of the relevant documentation, taxpayers must go through different stages to complete the process. Part of this declaration involves accessing the penalty protection regime.
In this situation, Italian taxpayers must prepare, digitally sign, and electronically timestamp the Transfer Pricing Documentation (both the Local File and the Master File). This action must be taken at the time of filing the corporate income tax return.
Delays in transfer pricing documentation
Taxpayers which cannot prepare the Transfer Pricing Documentation can benefit from the penalty protection regime. This choice is applicable at the time of the submission of the corporate tax return.
This alternative rule makes use of a supplementary tax return deadline that may be filed within 90 days after the standard deadline: until January 31st.
E.g: Taxpayers with a calendar year-end can declare the availability of the compliant Transfer Pricing Documentation, properly digitally signed and electronically timestamped.
Conclusions
Therefore, with this upcoming tax return, it is advisable to have the best local partner to ensure the correct compliance of your multinational or investment fund. Thus, do not hesitate to contact Auxadi for transfer pricing management in Italy.
We invite you to contact us via our form for a personalized consultation.
At Auxadi, we offer comprehensive services in accounting, tax, payroll, transfer pricing and corporate legal services to multinationals and funds. With experience since 1979 and a presence in over 50 countries, including 22 proprietary subsidiaries, our advanced technological platform and proven methodology enable us to guarantee efficient management in compliance with local regulations.
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Auxadi can become your ideal partner. We offer a one stop shop value added outsourcing services in the areas of accounting and reporting, tax compliance, payroll management and representation services, among others.
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Founded in 1979, Auxadi is a family-owned business working for multinational corporations, private equity funds and real estate funds. It’s the leading firm in international accounting, tax compliance, payroll, transfer pricing, and corporate legal services management connecting Europe and the Americas with the rest of the world, offering services in 50 countries. Its client list includes many of the top 100 PERE companies. Headquartered in Madrid, with offices in US and further 26 international subsidiaries, Auxadi serves 1,500+ SPVs across 50 jurisdictions.
All information contained in this publication is up to date on 2024. This content has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice.No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this content, and, to the extent permitted by law, AUXADI does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.