The Italian government has repealed the tax, introduced in 2018, on remittances outside the EU made through payment institutions.
Among the many measures foreseen by the finance law for the financial year 2021 (law n ° 178/2020), the Italian government seems to have put an end to the question relating to the tax on money transfers to foreign countries executed by the intermediary of payment institutions governed by art. . 114-decies of Legislative Decree no. 385 of September 1, 1993 (the “Tax”), expressly repealing the Tax in Art. 1, s. 1120.
The tax was introduced by art. 25-novices of Legislative Decree No. 119 of 23 October 2018 – known as the tax decree – and provided for a tax of 1.5% on each transfer of money over EUR 10 to third countries (excluding commercial transactions) made by payment institutions performing the remittance service (i.e. a payment service where, without the need for the payer or the payee to open a payment account, the payment service provider receives payor’s funds for the sole purpose of transferring a corresponding amount, expressed in legal tender, to the payee or to another payment service provider acting on behalf of the payee, and / or where such funds are received on behalf of the payee and made available to the latter).
Immediately after its entry into force, the Tax raised many questions; the main problems were linked to its discriminatory nature, since the Tax was only applicable to transactions carried out by payment institutions (and not to money transfer transactions carried out by other payment service providers) and to fact that the Tax appeared in violation of the Community principle of free movement of capital, stated by art. 63 of the Treaty on the Functioning of the European Union, prohibiting any restriction on the movement of capital between Member States, as well as between Member States and third countries. In the light of the critical problems highlighted, the modalities of application referred to in art. 25-novices of the tax decree have never been published.