On 26 October 2026, Legislative Decree No. 148/2026 introduced significant amendments to the controlled realization regime (realizzo controllato) governing contributions of loss-making assets to companies. The new provisions modify the calculation of the tax-recognized loss by requiring a three-way comparison among the contributing asset’s fiscal cost, its normal market value, and the net equity increase of the receiving entity. This measure aims to curb aggressive tax planning where losses are artificially inflated through intra-group contributions. The decree applies to transactions executed from the date of entry into force and impacts both IRES and IRAP determinations. Tax advisors must now reassess pending restructuring operations to ensure the fiscal cost attributed to the conferitaria aligns with the stricter valuation hierarchy.
Key Takeaways
- Three-Tier Valuation Test: The deductible loss is now capped at the lowest of fiscal cost, normal value, or net equity increase, effectively preventing loss duplication across group entities.
- Immediate Application: The rules apply to contributions made after the decree’s publication, requiring urgent review of ongoing reorganization plans to avoid unexpected tax liabilities.
- Documentation Burden Increase: Taxpayers must prepare contemporaneous valuation reports supporting all three metrics to withstand potential challenges from the Revenue Agency during audits.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement