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Italy: New financial instruments

  • provide a periodic analysis at least every six months of the value of the issued financial instruments.

4. The last financial statements of the company must be certified by an auditing firm.
5. The financial instruments may only be sold to qualified investors (as defined in DLgs no. 58/1998).

The benefits for small and medium sized companies that decide to issue these new types of financial instruments are expected to be the following:
1. The possibility of access to non-banking financing channels that up until now were reserved exclusively for listed companies.
2. The exemption of withholding taxes on interest and other income paid on the bonds.
3. The possibility to deduct the interest paid on the bonds from the taxable income of the company issuing the bonds without being subject to a limitation on the deduction, provided that the effective rate of return on the bonds does not exceed:

  • twice the official rate for bonds and similar securities traded on regulated markets in the EU;
  • the official rate increased by two-thirds of the value of bonds and similar securities that are not traded on regulated markets in the EU.

Please note that the aforementioned limitation does not apply to interest paid on issued minibonds.

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