Global FS tax newsflash: Italian FTT - the draft Decree: do we now have all the answers?

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The Italian Minister of Economy and Finance (“MEF”) issued a draft Decree (the “Decree”) on 1 February 2013 relating to the implementation of the Italian Financial Transaction Tax (“FTT”) provisions included in the 2013 Stability Law. The Decree provides further guidance on the scope of the Italian FTT, the computational basis and the practicalities as to who will be responsible for collecting the tax and reporting to the Italian tax authorities.

The Decree provides further detail in connection with all three elements of the Italian FTT:

  1. The Securities Tax;
  2. The Derivatives Tax; and
  3. The High Frequency Trading (“HFT”) Tax.

The additional guidance contained in the Decree will help financial institutions in their implementation of the Italian FTT. However, there are still a number of areas (e.g. the detailed information on what financial institutions will need to report) on which further guidance will be required ahead of the 1 March 2013 start date for the Securities Tax and HFT Tax on securities, and 1 July 2013 for the Derivatives Tax and HFT Tax on derivatives.