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HMRC internal manual

Double Taxation Relief Manual

From
HM Revenue & Customs
Updated
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Italy: Relief from Italian tax

General

There are strict time limits for submission of claims in Italy. In most cases the time limit is 18 months from the date on which the tax was paid.

Claims for relief at source from Italian tax and/or for refund of withholding tax in excess of the rate provided in the agreement should be made on the forms referred to in the next sub-paragraph., which may be obtained from the Italian authorities at the address below. The claimant should complete the form and send it to his tax office. If the necessary conditions are satisfied (see INTM162030), HMRC will complete and sign the certificate, retain sheet nr.2 and return the form to the claimant. The claimant should send the completed form to Agenzia delle Entrate, Centro Operativo di Pescara, Via Rio Sparto, 21, 65100 Pescara, Italy.

The forms are:

R/GB-I/1 - claim for relief at source or repayment of withholding tax on dividends in excess of the rate provided by Article 10(2) of the Convention.

R/GB-I/2 - claim for relief at source or repayment of withholding tax on interest in excess of the rate provided by Article 11(2) of the Convention.

R/GB-I/3 - claim for relief at source or repayment of withholding tax on royalties in excess of the rate provided by Article 12(2) of the Convention.

I-GB/C.I - claim for payment of the full or half tax credit available on dividends under Article 10(4) of the Convention.

R/GB-I/2a - claim for relief at source or repayment of tax on interest on loans made, guaranteed or insured by a UK public or local authority or the ECGD as provided by Article 11(4)(b) of the Convention.

Mod. 111/IMP - claim for repayment of tax on interest on Italian Government securities.

The following forms may also be required when claiming relief at source on interest paid by Italian Government Securities or debenture interest. These forms should be obtained from the intermediary or depository bank.

Mod. 113/IMP - claim for relief at source by individuals and companies on interest on Italian Government securities.

Mod. 114/IMP - claim by international organisations for relief at source on interest on Italian Government securities.

Mod. 116/IMP - claim by individuals or companies for tax on debenture interest.

Mod. 117/IMP - claim by international organisations for tax on debenture interest.

Claims should be made as soon as possible after payment of the relevant income. Cases should be considered under INTM161250 where claims have been refused because they have failed to meet the time limit.

Italian Government Securities

The Italian Ministries of the Treasury and Finance introduced new procedures and forms with effect from 24 March 1994 for non-resident holders of Italian Government securities to claim double taxation relief on their interest. As a result, tax offices are likely to receive requests to sign Italian form Mod. 113 to certify that the claimant is resident in the United Kingdom for tax purposes and is `here liable to income taxes on interest and income derived from Italian Government securities’.

Provided UK residence is established at the date when the form is presented to the tax office, the certificate may be signed regardless of the fact that the claimant may have no actual liability to tax in the UK. This may be for example as a result of loss relief or because the claimant is entitled to an exemption from UK tax on part or all of their income (for example because of charitable status).

The form is available in both Italian and English language versions, either of which may be certified as above.