Microsoft Word - D066-2007.doc 1 REPUBLIC OF SAN MARINO We the Captains Regent of the Most Serene Republic of San Marino Having regard to Article 4 of the Constitutional Law no.185 / 2005 and Article 6 of Qualified Law n.186 / 2005; We promulgate and publish the following ordinary law approved by the Great and General Council at its meeting on 16 May 2007. 29 May 2007 66 LAW AMENDMENTS TO THE LAW 13 October 1984 Ranked # 91 (ESTABLISHMENT OF TAX GENERAL INCOME TAX) Art. 1 Article 2 of Law 91 of 13 October 1984 is replaced as follows: "Art. 2 (Taxable persons) 1. The general income tax applies to natural persons, legal persons and entities in the same class residents and non-residents within the state, as well as to the PE. 2. It is considered to be resident natural persons who for most of the tax period have in the territory of the State of the domicile or residence. 3. It is considered to be resident legal persons and entities that have their registered office or place of effective management in the State. 4. The company's simple, general partnership and limited partnerships are not taxable entities; income produced by those companies in proportion to their interests in the profits are allocated to each shareholder regardless of the actual perception. 5. The associations between professionals are treated as ordinary partnerships. ". Art. 2 Article 3 of Law 91 of 13 October 1984 is replaced as follows: "Art. 3 (tax period) 2 1. The tax is payable for calendar years, each of which corresponds to the autonomous tax obligation. 2. The imputation of income to the tax period shall be governed by rules relating to the category you fall. ". Art. 3 after Article 3 of Law 13 October 1984 91 of Article 3a shall be inserted in the following text: "Art. 3a (Application of tax to non-residents) 1. For the purpose of charging against non-residents has its source in the State: a) income from land and buildings included within the borders of the State; b) the income payable by the State by persons resident in the State or by permanent establishments in the territory of the same non-residents; c) the compensation of employees paid in the State or abroad by residents in the State; d) the self-employment income derived from activities performed in the territory of the State, or on behalf of persons resident or having a permanent establishment in the State; e) the business income derived from activities performed in the State through a permanent establishment or on behalf of residents; f) all other income derived from activities carried out in the territory of the State and assets that are in the territory itself. 2. Regardless of the conditions referred to in c) letters, d), e) and f) of the first subparagraph has its source in the territory of the Republic, if paid by the State, by persons resident in the territory of the Republic or by permanent establishments in the territory of the same non-residents: a) pensions and allowances in the same class; b) the fees for the use of intellectual property, industrial patents and trade marks as well as processes, formulas and information relating to experience acquired in the industrial, commercial and scientific. ". Art. 4 The third paragraph of Article 4 of Law 91 of October 13, 1984 is hereby repealed. Art. 5 Article 7, first paragraph, of the law 13 October 1984 n. 91 are added to the following letters: "i) income from the sale of financial lease of instrumental goods to the exercise of the profession or art, perceived by the person referred to in Article 19, consisting of the normal value of the asset, determined by the subsequent article 21 quater, net of fees still to be paid to the landlord by the transferee, taking into account, with regard to real estate, currency devaluation defined in accordance with Article 27, third paragraph; l) the reserves referred to in Article 19a. ". 3 Art. 6 Article 8, second paragraph, of Law 91 of 13 October 1984 is replaced by: "2. Income referred to in subparagraphs a), i) and l) of Article 7 shall apply the rate of 8%. ". Art. 7 Article 12 of Law 91 of 13 October 1984 is replaced as follows: "Art. 12 (Levying) 1. The general tax is levied as follows: a) for natural persons, applying the progressive rate in increments indicated in the table attached to this law; b) for subjects in the last paragraph of Article 20 by applying the proportional rate of 17%;
c) for the entities referred to in Articles 19, 26, 27a and 35, applying for the business income or self-employment, the proportional rate of 17% and other income for the progressive brackets that is the sum of these income to the business income or self-employment; such persons, within the tax return, they can opt for the application of the progressive income tax brackets even or self-employment. 2. For the persons referred to in item c), the liability provided for in Article 6 is primarily deducted from income that have been added respectively to the enterprise or to self-employment. ". Art. 8 Article 13 of Law 13 October 1984 n. 91 is replaced as follows: "Art. 13 (Capital Income) 1. They are considered capital gains those derived from capital data to mortgage or otherwise employed so that any resultant defined income. 2. There shall also be capital income: a) the interests of any kind, other than compensation; b) perpetual annuities and perpetual annual performance; c) dividends, interest and fruits typically associated with financial instruments referred to in Article 24a. 3. For the data capital to mortgage interests are considered in the perceived extent agreed in writing. If the measure is not determined in writing interests are included in calculating the statutory rate. 4. Shareholders 'loans to companies that are presumed to participate in the production of measuring interest at the legal rate except that the financial statements, the statements do not result or shareholders' resolution: a) that the payments have been made for other reasons; b) that the payments are not due interests; c) that the payments for which a different rate is charged. 4 5. The allocation of investment income to the overall tax base takes place in the tax year in which they were received; such income constitutes income components referred to in Article 21, when they were achieved in the activities referred to in Article 20. ". Art. 9 Article 16, third paragraph of the Law 91 of October 13, 1984 is replaced by: "3. If the building is not yet piled income is determined in the manner prescribed by Article 81 of Law 165 of 18 December 2003 and implementing decrees, since the tax period in which it has become adapted to be used where it is intended. ". Art. 10 Article 17 of Law 91 of 13 October 1984 is replaced as follows: "Art. 17 (Buildings intended for economic activities) 1. The income from buildings to the operation of economic activities is given by the rent received by the lessor fee. 2. The income of the buildings mentioned in the first paragraph shall be reduced by 40% for landlords who do not have the obligation to keep accounting records referred to in Title IX. 3. The reduction in the rental value specified in the preceding paragraph produces stable effects in Article 16. 4. If the economic activity is carried out directly by the owner, the cadastral income included in taxable total income of enterprise under the provisions Title VI; notwithstanding the foregoing, if the holder is an individual the said income does not form the total income of enterprise, notwithstanding the application of the provisions of Title VI concerning the deductibility of costs related to the production of income ' company. 5. If the income referred to in the first and second subparagraphs is lower than the income determined according to the land registry, the latter constitutes the taxable income. 6. In any other case the income of manufactured of any kind helps to determine the total income according to the land registry. 7. If the building is not yet piled income is determined in the manner prescribed by Article 81 of Law 165 of 18 December 2003 and implementing decrees, since the tax period in which it has become adapted to be used where it is intended. ". Art. 11 Article 19 of Law 91 of 13 October 1984 is replaced as follows: "Art. 19 (self-employment income) 1. The self-employment income is the difference between all the fees received during the calendar year, or by the professional during the conduct of its business and the costs of that year provided they are documented and actually incurred in the same year. 5 2. expenses are deductible for the acquisition of those capital goods or to the exercise of the profession who have a unit cost of less than € 1,000.00. For other assets, including real estate, pertaining to the operation of the art or profession, are allowed as deductions annual fees to be amortized gradually at a rate determined by the appropriate table
prepared by the Secretariat of State for Finance and approved by delegated decree. 3. The costs relating to the purchase of movable property pertaining to the exercise promiscuously art or profession, and personal or family use of the taxpayer are depreciable or deductible to the extent of 70%. 4. Expenditure relating to hotel services and administration of foods and drinks in public exercises are deductible for a total amount not exceeding 2% of the amount of the fees received during the tax period. The aforementioned expenses are fully deductible if charged by the artist or by the professional to the customer via express indication in the parcel. 5. They are also self-employment income: a) the remuneration received, in whatever form or denomination, by directors, auditors or auditors or as a result of coordinated and continuous collaboration relationships; such income, whether earned by entities not obliged to keep accounting records, will form the tax base to the extent of 75%; b) the resulting economic income from the use of trademarks, intellectual property, to copyright, industrial inventions and the like; such income if received by non-liable parties to keep accounting records, will form the tax base to the extent of 75%. ". Art. 12 After Article 19 of Law 91 of 13 October 1984 inserted Article 19a in the following text: "Art. 19a (Relevance of unrealized gains and losses) 1. They contribute to form the self-employment income as gains or losses of capital goods if they: a) are made through the disposal for consideration; b) are made by compensation, even in the form of insurance, for the loss or damage of goods; c) the goods are intended for personal or family consumption of the operator art or profession or purposes other than art or profession. 2. We consider capital gains or losses the difference, positive or negative, between the price or the perceived benefits and the non-amortized cost or, in the absence of consideration, the difference between the normal value of the asset and not amortized cost, taking into account , with regard to real estate, currency devaluation defined in accordance with Article 27, third paragraph ". Art. 13 Article 21 of Law 91 of 13 October 1984 is replaced as follows: "Art. 21 (Determination of income) 1. The income business consists of the net profits realized in the tax period, resulting from the difference between the amount of revenue, whatever their origin, provided they referred to the production of 6 business income, and the 'amount of costs incurred during the year relating to the same, making the increases or decreases resulting from the application of the criteria established by the provisions of tax legislation. 2. Revenues, other income of all kinds and inventories contribute to income regardless of their inclusion in the tax records. The costs and other expense items are allowed as a deduction only if and to the extent that defendants are in the tax records relating to the exercise of jurisdiction, except for those charged to the statement of a previous year if the deduction was deferred in accordance with the tax provisions and those who, although not attributable to income, are deductible by law. 3. They contribute to income in the period income, the normal value of the company's products for personal or family consumption of the proprietor or assigned to shareholders, or for purposes unrelated to the company, as well as the capital gains relating to the assets' company other than those to which exchange or the production of which is direct the activities of the company during the tax period in which they are made. 4. The components of income arising from transactions with non-resident companies in the State, that directly or indirectly control the company, they are controlled or are controlled by the same company that controls the company, in accordance with Law No 20 July 2004 .102, are valued based on the normal value of the property sold, the services provided and the goods and services received, if it results in increased income; the same provision applies even if it results in a decrease in the income, but only in compliance with the agreements concluded with the competent authorities of foreign states in following the special mutual agreement procedures provided for by international agreements against double taxation on income. 5. The documented loss of a tax period, determined according to the provisions of this Title, may be deducted from taxable income to the extent of 80% in the three succeeding tax periods.
6. The adjustment by the Office of the assessments made by the taxpayer in an exercise has effect also for subsequent years. The Office takes account of adjustments and proceeds directly to rectify the assessments relating to future years. ". Art. 14 After Article 21 of Law 91 of 13 October 1984 inserted Article 21a in the following text: "Art. 21a (economic Inherence) 1. Negative components are deductible if and to the extent that they relate to the activity from which they derive or may derive revenue or other income that go to make your income, save for specific statutory provisions are expressly excluded . 2. The negative components relate without distinction to operations or production assets of taxable income and not taxable as exempt in determining income are deductible pro rata. ". Art. 15 After Article 21a of the Law October 13, 1984 91 is inserted Article 21b in the following text: "Art. 21b (temporal jurisdiction) 7 1. The positive and negative components contribute to the determination of taxable income on an accrual basis where in that year it is certain the existence and the amount can be determined objectively; otherwise the positive and negative elements would form part of the taxable income in the year when these conditions are met. 2. For the purposes of determining the exercise of competence: a) the proceeds of disposals is considered earned, and acquisition costs of assets are considered incurred at the date of delivery or shipment for mobile goods and the stipulation of the act for real estate and for companies, or, if different, and after, the date of occurrence of the effect of translating or incorporation of the property or other property rights; b) the proceeds of supply of services is considered earned, and the acquisition costs of the services are considered paid on the date on which the services are provided or for those addicted to the leases, mortgage, insurance and other contracts that resulting periodic payments, the maturity date of the consideration. ". Art. 16 After Article 21 ter of Law 91 of 13 October 1984 inserted Article 21c in the following text: "Art. 21c (normal value) 1. With delegated decree has defined the notion of normal value in relation to the case of taxation or economic transaction to which this principle should apply. ". Art. 17 Article 22 of Law 91 of 13 October 1984 is replaced as follows: "Art. 22 (Fee) 1. In determining the income takes into account all the costs of acquiring goods or services, loss, contingent liabilities, the capital losses in the year in which they are made. 2. The costs directly attributable to assets other than those that originate revenue or income immediately related to business income, with the exception in the third paragraph of Article 23, are not deductible and are taken to increase the cost of goods themselves. 3. It does not constitute tax deductible expenses on income, penalties and charges related to late or non-payment of taxes. 4. Do not be deducted the fees paid for the work done by the entrepreneur and family members referred to in Article 9, unless they do not possess a regular employment position or self to all legal purposes. 5. The compensation paid to directors of companies, institutions or other legal persons responsible for the compilation of the budget, are deductible in the year they are paid. 6. No deductible costs related to the acquisition of services from non-residents that are not subject to income tax or will undergo a lower rate of more than 50% than that provided in the first paragraph, letter b) of Article 12. 7. the provisions of the preceding paragraph shall not apply: 8 a) where the undertaking provides evidence that the transactions carried out respond to an effective economic interest of the company and that they have had physical implementation, or b) when the consideration for the service is subject to a withholding tax. 8. The taxpayer may request the tax authorities opinion on the absence of the conditions for the application of the sixth paragraph. The opinion shall be provided within a period of forty-five days after instance, it must be motivated and takes effect only for the tax ratio. In the event that the opinion is favorable or may not be instantly transmitted to the taxpayer within the said period, the provision in the sixth paragraph, considering
unenforceable, except in cases of serious inaccuracies or omissions contained in the instance. ". Art. 18 After Article 22 of Law 91 of 13 October 1984 inserted Article 22a in the following text: "Art. 22a (Revenues) 1. Are considered income: a) whose production considerations for the sales of goods and services or to whose exchange is the company's activities; b) the proceeds of the sale of raw materials and auxiliaries, semi-finished and other movable property, other than instrumental, purchased or produced to be used in the production; c) the proceeds of the sale of shares or units of equity and similar financial instruments to shares not held as financial fixed assets, although not included in the assets to which exchange is the company's activities; d) the proceeds of the sale of bonds and other financial instruments, which are not financial assets, other than those referred to in subparagraph c), although not included in the assets to which exchange is the firm's activity. 2. It also includes revenues between the normal value of the goods specified in the first paragraph assigned to shareholders or used for purposes extraneous to the business. 3. For the purposes of income tax, the goods referred to in letters c) and d) of the first subparagraph shall not constitute financial assets if they are not registered as such in the budget. ". Art. 19 Article 23 of Law 91 of 13 October 1984 is replaced as follows: "Art. 23 (Interest) 1. Interest expenses are deductible when they are paid to persons resident in the territory of the Republic or to companies or lenders. They are also deductible interest expense paid to financial non-resident companies by the parties responsible to the annual compilation of the financial statements and those paid on bonds. 2. Interest expense paid to customers by companies and banks, and finance companies, pursuant to Law 165 of 17 November 2005, are always deductible. 3. The interest expense related to assets other than those constituents Goods the production or exchange of which is direct the activities of the undertaking in Article 22, second paragraph, until the time of which it is started or can be started the use, are not deductible and are taken to increase the cost of the assets. 9 4. The interest referred to in Article 13, fourth paragraph, shall, irrespective of the residence of the recipient, in the year they are paid. ". Art. 20 Article 24 of Law 91 of 13 October 1984 is replaced as follows: "Art. 24 (Measurement of inventories) Inventories 1. Constitute the following categories of goods: a) finished products and goods referred to in subparagraph a) of Article 22a, first paragraph; b) raw materials, consumables and supplies referred to in point b) of Article 22a, first paragraph; c) the products being processed and semi-processed. 2. Changes in the final inventory of the assets of the first subparagraph with respect to the opening balance a component of the income for the year. To this end, the final inventories, the evaluation of which is not carried out in specific costs, they are taken to a value not less than that resulting grouping assets into categories by type and value and assigning to each group a value not less than that determined in accordance with the following provisions. 3. For the purposes of the provisions of this Article shall include the cost of the only ancillary charges directly attributable, excluding overheads. 4. In the first year in which they occur, inventories are valued by giving each unit the value resulting from the division of the total cost of the goods produced and purchased during the same for their quantity. 5. In the subsequent years, if the amount of inventories increased compared to the previous year, the largest exports, valued in accordance with the fourth paragraph are separate entries for training exercises. If the amount is decreased, the decrease was blamed for formats increases in previous years, starting with the most recent. 6. For companies who value on the balance sheet closing inventory using the weighted average method or the 'first in, first out "or variations of that referred to in the fifth paragraph, the final inventories are assumed for the value resulting from' application of the method. 7. If in any year the average unit value of goods, determined in accordance with the fourth, fifth and sixth paragraphs, exceeds the average normal value of them in the last month of the year, the minimum value specified in the second paragraph shall be determined multiplying the entire quantity of goods,
independently from the training, for the normal value. The lower value of the inventories in accordance with the provisions of this paragraph also applies to subsequent years provided that the inventories do not result recorded in the balance sheet at a value higher. 8. The products work in progress and services in progress are valued based on costs incurred and directly attributable to additional charges in the tax period. 9. The evaluation of the works and services in progress, multi-year, takes place on the basis of the share of contractual revenues net of those settled definitively. 10. Inventories of an exercise, in the amount specified by the taxpayer or by the Office, constitute the next year opening balance. 11. In the book of inventories inventories resulting to be recorded at the end of the tax period, indicating the quantities grouped by nature and the relative unit value. ". 10 Art. 21 After the Article 24 of Law 91 of October 13, 1984 Article 24a is inserted in the following text: "Art. 24a (Financial Instruments) 1. For the purposes of the following provisions, are for financial instruments listed in Annex 2 of the Law 165 of November 17, 2005. ". Art. 22 After Article 24a of the Law October 13, 1984 91 Article 24b is inserted in the following text: "Art. 24b (normal value of financial instruments) 1. The normal value of financial instruments is determined: a) for equities, bonds and other securities traded on regulated markets, according to the average price for the last month; b) for other actions, for the shares of the company and the securities or shares in the capital of entities other than the company in proportion to the net asset value of the company or institution, or, for companies or newly established institutions , the total sum of contributions; c) for bonds and other securities other than those referred to in subparagraphs a) and b), comparatively to the normal value of securities with similar characteristics traded on regulated markets and, failing that, on the basis of other elements can be determined objectively. " . Art. 23 After Article 24 ter of Law 91 of October 13, 1984 Article 24c is inserted in the following text: "Art. 24c (Valuation of financial instruments) 1. The securities referred to in Article 22a, first paragraph, c) and d), existing at the end of a financial year, they are valued by applying the provisions of Article 24, first, second, third fourth, fifth and sixth paragraphs. 2. The provisions of Article 24, paragraph seven, only apply for the assessment of qualifications Article 22a, first paragraph, letter d); to this end, the minimum value is determined: a) for securities traded on regulated markets, according to the price during the last day of the period or on the basis of the arithmetic mean of December prices; b) for other titles, in accordance with Article 24b, point c). ". Art. 24 After Article 24c of the Law 91 of October 13, 1984 Article 24d is inserted in the following text: 11 "Art. 24d (balance sheet and contingent assets Gains) 1. Gains of assets related to the company, other than those specified in Article 22 bis, a component of the income: a) if they are made through the disposal for consideration; b) if they are made by compensation, even in the form of insurance, for the loss or damage of goods; c) if the goods are assigned to shareholders or used for purposes extraneous to the business. 2. In the cases referred to in subparagraphs a) and b) of the first paragraph of the capital gain is the difference between the consideration or compensation received, net of directly attributable transaction costs, and the cost is not amortized. 3. In the case referred to in subparagraph c) of the first paragraph of the capital gain is the difference between the normal value and the non-amortized cost of the assets. 4. Capital gains realized a component of the income for the full amount in the year in which they were made or, if the assets were held for a period of not less than two years, at the option of the taxpayer, on a straight line in ' exercise itself and in the following, but not the fourth. The aforementioned choice must stem from the tax return. For assets held as financial fixed assets, the provisions of the previous periods. 5. they consider contingent assets, revenues or other income from the expenses,
losses or charges deducted or liabilities recognized in the financial statements in previous years and revenues or other income received by amount higher than that which contributed to income in prior years, as well as the unexpected absence of expenses, losses or charges deducted or liabilities recognized in the financial statements in previous years. 6. In the case of a finance lease sale, constitutes the normal value windfall of good, determined in accordance with the previous article 21c, considered net of fees still to be paid to the landlord by the transferee. ". Art. 25 After Article 24d of the Law October 13, 1984 91 Article 24e is inserted in the following text: "Art. 24e (capital losses and losses) 1. Losses of assets related to the company, other than those specified in Article 22 bis, determined by the same criteria established for the determination of capital gains, are deductible if they are made pursuant to the first subparagraph a) or b) of Article 24d ie where it is demonstrated the definitive loss or damage to the well. 2. For the evaluation of the assets specified in Article 22a, first paragraph, letter d), as financial fixed assets, the provisions of Article 24c; However, for securities traded on regulated markets, capital losses are deductible not to exceed the difference between the taxable value and the value determined based on the average price for the last six months. 3. We consider the failure to achieve extraordinary losses of revenues or other revenues that are allocated to income in prior years, incurring expenses, losses or expenses against revenue or other revenues that are allocated to income in prior years and the unexpected absence of balance sheet assets in prior years. 12 4. The losses of goods referred to in the first paragraph, not commensurate with the amortized cost of them, and credit losses are deductible if they are to be certain and precise, and in any case for credit losses if the debtor is subject to bankruptcy proceedings. For the purposes of this paragraph, the debtor is considered subject to legal proceedings from the date of the opening measures of the procedure. ". Art. 26 After Article 24e of the Law 91 of October 13, 1984 Article 24f is inserted in the following text: "Art. 24f (Gains and losses on disposal of assets to creditors) 1. The sale of assets to creditors, in accordance with Law 17 of November 15, 1917, does not determine capital gains or losses including those relating to inventories and goodwill. " . Art. 27 Article 26 of Law 91 of 13 October 1984 is replaced by "Art. 26 (Building more) 1. Undertakings whose income is defined by the provisions of Article 20, and which are not already required to prepare financial statements, except for those undertakings for the procedure laid down in Article 27a, when in during the reference year provided for in Article 34 have achieved the amount of revenue exceeding € 800,000.00, are obliged to fill in the income statement and balance sheet for the next two years. 2. The parameters mentioned in the previous paragraph can be changed and defined by delegated decree on the proposal of the State Congress. 3. The Secretariat of State for Finance provides firms with the criteria to be followed in determining the amount of revenues under the first paragraph. 4. The companies covered by this Article shall, with regard to the compilation of the budget and the balance sheet account, the rules contained in the law 23 February 2006 n.47. ". Art. 28 Article 27 of Law 91 of 13 October 1984 is replaced as follows: "Art. 27 (Other Income) 1. The total income contributes any other income, however achieved, other than those already expressly provided for by the provisions of this Act, as well as capital gains not included in business income or self-employment undertaken for speculation . 13 2. The gain is the difference between the charges made in the tax period, the purchase price or construction cost of the goods sold, rose by any other costs relating to those goods. 3. For capital gains on properties held for currency depreciation, to the extent established annually by delegated decree. 4. They do not have the speculative end, and therefore do not constitute taxable income, the capital gains realized on the purchase and sale of goods provided that the period of time
elapsing between the purchase and the sale is not less than five years. ". Art. 29 After Article 27 ter of Law 91 of 13 October 1984 inserted Article 27c in the following text: "Art. 27c (customer list Communication) 1. Taxpayers eligible for flat-rate scheme provided for in Article 27a, as an annex to the tax return must submit the list of subjects, possess economic operator code or VAT or other identification code equivalent, for which invoices were issued during the year covered by the report. 2. For each subject must indicate the total amount of calls made and, separately operations, any change notes. 3. For the omission of the communication or of the lists, and to the sending of the same with incomplete data or incorrect documents, it shall be fined from € 1,500.00 to € 3,000.00. ". Art. 30 Article 39, fifth paragraph, of Law 91 of 13 October 1984 is replaced by: "5. The subjects mentioned in the first paragraph that match compensation in cash or kind or any name for self-employed work or assimilated, as defined in Article 19, to persons resident abroad, even when the services are carried out under the d ' company, must operate a withholding tax of 15% title. Withholding tax, if the percipient are individuals resident abroad, is also operated on bonuses for the termination of ratios available from employment referred to in point b) of Article 7. ". Art. 31 Article 39, tenth paragraph, of Law 91 of 13 October 1984 is replaced by: "10. On interest expense and / or equivalent proceeds paid by banks pursuant to Law 165 of 17 November 2005 it has made a considered, as required to pass 11%. On interest expense and other income paid in connection with operations "repo" of shares and securities of any kind and nature is applied withholding, with recourse obligation of 5%. On interest expense and other income from certificates of deposit it is made a considered, as required to pass, the 5% if such certificates have a term of less than 18 months or 4% if they have a duration equal to or more than 18 months. On interest expense and other income relating to bonds issued by persons authorized 14 of Law 165 of 17 November 2005 has made a considered, as required to pass, by 4% except where the recipient is a bank of Law 165 of 17 November 2005, a bank or other foreign financial intermediary does not trust business operator or a collective investment scheme. The other deductions referred to in this paragraph shall not apply if the recipient is a bank. The withholding tax on interest and other income paid by persons authorized under Law 165 of 17 November 2005 can be modified by delegated decree on the proposal of the State Congress. ". Art. 32 (Transitional provisions) 1. The facilities provided for in Article 21, as paragraph 91 of the Law October 13, 1984 are recognized in relation to provisions made by 31 December 2007. 2. The clients communicate the list, provided Article 27c of the law 91 of October 13, 1984, introduced by Article 29 of this law, must be submitted as of the statement of income for the year 2007. 3. For the tax year current on the date of entry into force of the provisions of this Act, the general rate of advance corporation tax, entities and entities with full accounting, according to the provisions of Decree 72 of May 10, 1988, is carried out taking as sets that in force December 31, 2006. 4. tax concessions granted before the date of 1 January 2007 will continue to be benchmarked on previously in force rate. 5. On the business income of the persons carrying out activities listed in Annex 1 of Law 165 of 17 November 2005 is applicable, in place of that provided for in Article 12, first paragraph, letter b), as amended by 'Article 7 of this law, the rate of 19% for fiscal year 2007 and 18% for the fiscal year 2008. 6. for the purposes of calculating the capital gains referred to in Article 19a, second paragraph, law 91 of October 13, 1984, introduced by Article 12 of this law, does not take into account the costs incurred before the entry into force of this Act. 7. For the purposes of quantifying the income from the sale of financial lease of instrumental goods to the exercise of the profession or of Article 7, first paragraph, letter i), introduced by Article 5 of this Law , no account is taken of the royalties paid
before the entry into force of this Act. 8. The provisions of Article 19, fourth paragraph, of the Law 91 of October 13, 1984, introduced by Article 11 of this Law, those referred to in Article 21, fourth paragraph, of the law 13 October 1984 n. 91, introduced by Article 13 of this law and those referred to in Article 22, sixth, seventh and eighth paragraphs, of law 91 of October 13, 1984, introduced by Article 17 of this law shall apply from 1 January 2008. 9. the rate referred to in Article 8, second paragraph, of the law 91 of October 13, 1984, introduced by Article 6 of this Act, shall apply from 1 January 2008. Art. 33 (Consolidated) within two years from the entry into force of this Act, by delegated decree is issued the Consolidated General of Tax on Income. 15 Art. 34 (Authentic Interpretation) The documents that the taxpayer is obliged to attach to the declaration shall be those provided for in Article 31 of Law 91 of October 13, 1984; the allegation of the additional documents required by the forms relating to the general tax on income approved by delegated decree is meant purely optional. Art. 35 (Entry into force) 1. The effects of this Act shall take effect from the tax year 2007. 2. This Act comes into force on the fifth day following that of its legal publication. Our Residence, this day of 29 May 2007/1706 THE CAPTAINS REGENT Alessandro Rossi - Alessandro Mancini THE SECRETARY OF STATE FOR INTERNAL AFFAIRS Valeria Ciavatta