Easier successions with the do-it-yourself tax. Facilitated for those under 26

Final go-ahead for the simplification of calculation and settlement procedures for inheritance, gift and registration taxes. With the final ok to the delegated decree on indirect taxes, the Government launches a restyling operation destined to change also the framework of the rules on family business transfers and the taxation of trusts. All with a time horizon that envisages an effective date as of 1 January 2025. Then there is also a change requested through a comment in the opinion approved by the Senate Finance Committee (see 'Il Sole 24 Ore' of 25 July) that seeks to meet the needs of heirs with younger age. For taxpayers aged 26 and under, in fact, provision is made for the possibility of paying cadastral, mortgage and stamp duties in the case of property included in the estate by using the sums held in deposit, at banks and financial or insurance institutions, and constituting part of the assets of the estate. In this way, as explained by the Deputy Minister for the Economy Maurizio Leo in the press conference after the CDM, "the bank will immediately release the sums so that the young people can meet the tax payments".

But the sign of simplification emerges above all in the features of the self-assessment strongly desired by Leo on the calculation and declaration of inheritance tax. Self-assessment, in fact, becomes the guiding principle (and also concerns registration tax). More in detail, as far as inheritances are concerned, the delegated decree confirms the approach contained in the initial text sent to Parliament by establishing that the payment of the self-assessment tax must take place within 90 days of the deadline for submitting the declaration. In this way, the self-assessed tax becomes the 'principal' tax. Any adjustment or assessment by the tax authorities results in a 'supplementary' tax, while the 'supplementary' tax will be superseded, which is in fact replaced by the amount redetermined by the office. But the novelties also extend to the mode of submission and content of the inheritance declaration: the transmission channel becomes telematic only (within 12 months of the opening of the succession), with the sole exception represented by mailing by registered mail, which is reserved exclusively for non-residents. As far as filling in is concerned, on the other hand, it will no longer be necessary to indicate the details of the acts of alienation for consideration carried out in the last six months with the relevant consideration. There will also be no more need to enclose the cadastral extracts relating to real estate and a certificate of public registers indicating the identification details of ships and aircraft.

As anticipated, the delegated decree also intervenes on family business transfers. In the case of transfers to descendants and spouses of shares and stock in joint stock companies and cooperative societies, the exclusion from taxation applies when, as a result of the transfer, control is acquired by operation of law (as provided for by the Civil Code) or there is already existing control. The relief, however, is conditional on the successors in title maintaining control for a period of not less than five years from the date of transfer. The tax exclusion also applies to transfers of shares and stocks of companies resident in countries of the European Union, the European Economic Area (EEA) or of states that guarantee an adequate exchange of information.

Clarity is then provided on the moment of taxation of trusts. The tax applies at the time of the transfer of the assets and rights in favour of the beneficiaries. But the levy may also be levied at an earlier time, i.e. when the trustee files the declaration of inheritance or when assets are transferred into the trust. In that circumstance, taxation will take place without triggering an additional levy when the assets are transferred to the beneficiary.

On donations, the delegated decree implements the latest guidelines of the Supreme Court of Cassation by providing that indirect donations are not taxed except in cases in which they are expressly declared in the assessment phase or made known by the taxpayer. The tax will be 8% for the part exceeding the exemption for those who declare it in the assessment, while if registration is voluntary, the rates and exemptions will again apply.