As from the 1 April 2015 the Isle of Man is no longer on Italy’s blacklist.
The Italian Tax authorities have updated their blacklist based on the Isle of Man being involved in an information exchange agreement with Italy. Although the agreement has been in place since 2013 the decision was only reached following the latest Italian budget meeting.
Under the Italian tax code, Italian individuals and entities are required to provide additional details in order to deduct costs incurred in transactions with companies located in blacklisted countries.
This change means that expenses incurred by Italian businesses in transactions with Isle of Man resident companies may now be deductible, subject to the usual tax rules in Italy.
The removal of the Isle of Man from this list will benefit trade and simplify the Island’s tax relationship with Italy.
This is yet another example of the Isle of Man Government’s determination to be tax transparent and continue to improve co-operation with other jurisdictional tax authorities.