Italy Tax Agency Clarifies Transfer of Tax Credits in Corporate Post-Merger Context

The Italian Revenue Agency May 14 issued Letter No. 134/2025, clarifying the use and transfer of tax credits following a merger by incorporation. The taxpayer, an incorporating company, sought guidance on its obligations regarding the transfer of tax credits acquired under a prior agreement, and how a third party could use the credits in compensation. The Tax Agency clarified that: 1) in a merger, the acquiring company acquires the tax credits of the incorporated company without a new credit transfer; 2) the taxpayer must request a formal transfer through the tax authority before transferring the credits to a third party; ...