Advising on Withholding Tax Issues for Portfolio Income 

If you are a non resident or foreign person investing in Italy or the U.S. your are likely subject to the rules on withholding tax on Italian or U.S. source passive income you earn from Italian or U.S. investments such as dividends, interest, rents, royalties, gains and the like. Both Italy and the U.S. grant exemptions from withholding for certain type of income earned by foreign investors in Italy and the U.S. Tax exemptions may be limited or excluded in case of investments conducted through entities organized in low-tax countries.

In this labyrinthine area of international tax law, we help clients understand the rules, structure their investments in such a way as to eliminate or minimize withholding taxes and satisfy the procedural, administrative and documentation requirements related thereto. We also assist withholding agents such as companies, banks and financial institutions to comply with their withholding obligations and avoid exposure to personal withholding liability.

Our services in this area include:

• analyzing how the withholding rules apply to your facts;
• structuring your investments so as to eliminate or minimize withholding through domestic or treaty exemptions;
• analyzing how tax treaties impact your withholding obligations;
• determining whether and how anti-abuse and conduit rules may affect your withholding obligations;
• assuring that you comply with any return filing and administrative requirements.