Italy: Reaffirmation of standard refund applications – Update
LuxCSD1 informs clients that effective
1 March 2024
the fee for a new refund request will be charged for reaffirmation of a client's refund applications to prevent the 10-year prescription.
Background
According to art. 2943 of the Italian Civil Code, outstanding claims are deemed to expire after 10 years from their dispatch to the Italian Tax Authorities if the final investor or its representative – based on Power of Attorney – do not reaffirm their request to recover the tax overwithheld at source.
Following announcement L17066, all Italian standard refund requests filed since 18 April 2012 are submitted with a Power of Attorney to LuxCSD. The Power of Attorney allows the payment of refunds on the LuxCSD account and also prevents the 10-year prescription of refunds by appointing LuxCSD to reaffirm the client’s request to recover the tax overwithheld at source.
Impact on clients
LuxCSD will continue to process the reaffirmation of the reclaims reaching the 10-year prescription by default based on the Power of Attorney already provided and will charge the standard refund fees applicable as per our fee schedule.
Clients not willing to apply for reaffirmation should inform LuxCSD accordingly and request a closure of the pending refunds. Communication must be done via SWIFT MT599 and addressed to PTS – Tax Services, Italian Market, clearly stating the reference of the reclaim for which the reaffirmation should not be processed.
Important note: Only reaffirmation of refund applications through LuxCSD is not considered a new refund request, and clients are reminded that LuxCSD accepts no responsibility for their acceptance or non-acceptance by the Italian tax authorities.
Further information
For further information, please contact the LuxCSD Tax Help Desk, LuxCSD Client Services or your Relationship Officer.
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1. LuxCSD refers to LuxCSD S.A., registered office at 42, Avenue J.F. Kennedy, L-1855 Luxembourg, registered with the Luxembourg Trade and Companies Register under number B-154.449.