Newsletter - New China – Italy Double Tax Treaty
On 23 March 2019, the Chinese and Italian Governments signed a new agreement for the avoidance of double taxation and the prevention of fiscal evasion.
The Agreement, once in force and effective, will replace the current double taxation treaty between the two countries, concluded on 31 October 1986 (the “1986 DTT”).
The Agreement, the implementation of which aims at promoting and developing the bilateral cooperation between The People’s Republic of China and Italy, will strengthen the communication and coordination on fiscal, financial and structural reform policies to create and foster a favorable economic and financial environment.
Contrary to the majority of the double tax treaties concluded by Italy, the Agreement shall apply to taxes on income only (including taxes on capital gains), and does not apply to taxes on capital.
See the anaylisis on the topic by our Tax Department