In particular, the Second-Degree Court ruled that (i) the WHT exemption granted by the Interest and Royalty Directive (“IRD”) applies also if the beneficial owner is not the direct recipient of the interests and (ii) the domestic WHT exemption granted – under certain conditions – to interests paid to foreign qualifying investment funds applies also if the fund is not the direct recipient of the interests.

If the look-through approach applied by the Second-Degree Court is confirmed by the Supreme Court, this could grant the WHT exemption on interests paid by an Italian company also in case of private equity or real estate fund structures, where the beneficial owner or the foreign qualifying fund are not the direct recipients of the interests.

Description of the case…

Read more