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The non-deductibility of the Municipal Real Estate Tax (“IMU”) from income taxes is unlawful.



On November 19, 2020, the Italian Constitutional Court examined the questions regarding the lawfulness of the non-deductibility of the IMU, regarding year 2012, from income tax, raised by the Provincial Tax Commission of Milan, which had censored Article 14, paragraph 1, Legislative Decree no. 23/2011 which provided, with regard to companies, the full non-deductibility of the IMU from income tax.


In particular, according to such Commission, the non-deductibility from IRES of the IMU related to instrumental real estate was contrary to Articles 3, 53 and 41 of the Italian Constitution, in terms of the effectiveness of taxation, prohibition of double taxation, principles of reasonableness, consistency and equality, freedom of private economic initiative.


The Press Office of the Constitutional Court informs that the issues have been declared founded with reference to Articles 3 and 53 of the Italian Constitution, with regard to the violation of the principles of consistency and reasonableness.

Therefore, the contested provision has been declared constitutionally unlawful.


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