Italy clarifies its NOL regime and introduces a new tax incentive

European Tax Newsalert

Earlier this year, the Italian parliament modified the ordinary tax carryforward rules, repealing the five-year time carryforward limitation and introducing a utilization cap of 80% for any given fiscal year taxable income. On December 6, 2011, Italy clarified that the new rules also apply to prior year tax losses. Parliament also introduced a notional deduction in order to stimulate companies' capitalization.

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