Italy Implements Taxation on Payments Originating in Tax Haven Trusts
Under Italy's Law Decree no.124 of October 26th, trusts are about to become increasingly regulated. Going forward, income distributions from any suspicious trusts outside the Eurozone will be taxable in the hands of an Italian-resident beneficiary. A trust distribution will be presumed to be income, unless it can be proven to qualify as capital under Italian legislation.
The Italian government stressed that any transparent trusts where the beneficiary has a right to the income and trusts outside of low-tax jurisdictions will not be affected.