● Sala, Noro & Associates receives a refund of taxes paid abroad on dividends

Sala, Noro e Associati, with a team led by partnerStefano Noro, secured a refund from the Verbania Tax Office for taxes paid abroad by an individual on stock dividends. The legal reasoning is based on the fact that Article 24, paragraph 2, of the double taxation treaty—which denies the right to a tax credit only if the income is subject to withholding tax in Italy “at the request of the recipient of the income” – is no longer applicable since (January 1, 2004) foreign-source dividends are subject to withholding tax or substitute tax “by law” and not “at the request” of the taxpayer; consequently, the limitation on the right to a tax credit provided for in the treaty is no longer applicable.