# Italian — Taxes Sub-Lexicon

Italian tax-law terminology mapped to the neutral English equivalents in
`references/taxes.md`. Italian tax law is governed primarily by the TUIR
(Testo Unico delle Imposte sui Redditi, D.P.R. 917/1986), the IVA decree
(D.P.R. 633/1972), the Statuto del Contribuente (L. 212/2000), and the
procedural code on tax assessment (D.P.R. 600/1973). For corporate / M&A
context use alongside `italian-corporate-ma-jv.md`.

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## 1. Headline Taxes (Imposte)

| Italian | English |
|---|---|
| imposta sul reddito delle società (IRES) | corporate income tax (IRES) |
| imposta sul reddito delle persone fisiche (IRPEF) | personal income tax (IRPEF) |
| imposta regionale sulle attività produttive (IRAP) | regional production tax (IRAP) |
| imposta sul valore aggiunto (IVA) | value added tax (VAT) |
| imposta di registro | registration tax / registration duty |
| imposta di bollo | stamp duty |
| imposta ipotecaria | mortgage / land registry tax |
| imposta catastale | cadastral tax |
| imposta sulle successioni e donazioni | inheritance and gift tax |
| imposta sostitutiva | substitute tax (replacing CIT/CGT in special regimes) |
| imposta unica comunale (IUC) | municipal "single" tax (legacy umbrella for IMU / TASI / TARI pre-2020; replaced by "nuova IMU" under Legge di Bilancio 2020) |
| imposta municipale propria (IMU) | municipal property tax (IMU); restructured as "nuova IMU" from 2020 absorbing the former TASI |
| TARI | municipal waste tax (TARI) |
| TASI | municipal services tax (TASI — abolished from 2020; absorbed into "nuova IMU") |
| addizionale regionale all'IRPEF | regional surtax on PIT |
| addizionale comunale all'IRPEF | municipal surtax on PIT |
| accise | excise duties |
| dazi doganali | customs duties |
| canone RAI | TV license (treated as a tax) |
| tassa automobilistica / bollo auto | annual motor vehicle tax |
| imposta sulle assicurazioni | insurance premium tax |
| tobin tax / imposta sulle transazioni finanziarie | financial transaction tax (FTT) |
| imposta sui servizi digitali (ISD) | digital services tax (DST) |
| web tax | digital services tax (informal) |
| contributo unificato | unified court fee (procedural — not a tax) |

## 2. Direct Taxes — IRES / IRPEF Concepts

| Italian | English |
|---|---|
| reddito d'impresa | business income |
| reddito di lavoro dipendente | employment income |
| reddito di lavoro autonomo | self-employment / professional income |
| reddito di capitale | investment income |
| redditi diversi | miscellaneous income |
| reddito fondiario | real estate income |
| reddito agrario | agricultural income |
| plusvalenza | capital gain |
| minusvalenza | capital loss |
| utile civilistico | accounting profit |
| utile fiscale / reddito imponibile | taxable profit / taxable income |
| variazioni in aumento | upward adjustments (additions) |
| variazioni in diminuzione | downward adjustments (deductions) |
| oneri deducibili | deductible expenses |
| oneri detraibili | items eligible for tax credits / deductions from tax |
| ammortamenti | depreciation / amortization |
| accantonamenti | provisions / accruals |
| svalutazione crediti | bad debt write-down |
| interessi passivi | interest expense |
| ROL (risultato operativo lordo) | gross operating result (used for ATAD I / 30% EBITDA limit) |
| participation exemption (PEX) | participation exemption (PEX, Art. 87 TUIR) |
| dividendi infragruppo | intra-group dividends |
| consolidato fiscale | tax consolidation regime (Arts. 117–129 TUIR) |
| consolidato nazionale | domestic tax consolidation |
| consolidato mondiale | worldwide tax consolidation |
| trasparenza fiscale | look-through / pass-through taxation regime |
| credito d'imposta per redditi prodotti all'estero | foreign tax credit |
| ACE (aiuto alla crescita economica) | allowance for corporate equity (ACE) |
| super-deduzione / iper-ammortamento | super-deduction / hyper-depreciation |
| credito d'imposta R&S | R&D tax credit |
| patent box | patent box / IP box |
| regime forfettario | flat-rate regime (for small self-employed) |
| regime dei minimi | minimum taxpayers regime (legacy) |
| flat tax neo-residenti (Art. 24-bis TUIR) | flat-tax regime for new residents (€100k/€200k lump sum) |
| addizionale IRES | IRES surcharge |

## 3. IVA (VAT)

| Italian | English |
|---|---|
| soggetto passivo IVA | taxable person for VAT |
| operazioni imponibili | taxable supplies / transactions |
| operazioni non imponibili | non-taxable supplies (zero-rated for export, etc.) |
| operazioni esenti | exempt supplies |
| operazioni escluse / fuori campo IVA | supplies outside the scope of VAT |
| cessione di beni | supply of goods |
| prestazione di servizi | supply of services |
| cessione intracomunitaria | intra-Community supply |
| acquisto intracomunitario | intra-Community acquisition |
| importazione | importation |
| esportazione | export |
| esigibilità dell'imposta | chargeability of VAT / tax point |
| momento impositivo | tax point / chargeable event |
| base imponibile | taxable amount |
| aliquota IVA | VAT rate |
| aliquota ordinaria (22%) | standard rate (22%) |
| aliquota ridotta (10%) | reduced rate (10%) |
| aliquota super-ridotta (4%) | super-reduced rate (4%) |
| aliquota zero | zero rate |
| IVA a debito | output VAT |
| IVA a credito | input VAT |
| detrazione IVA | input VAT deduction / VAT recovery |
| pro-rata di detrazione | partial-recovery pro-rata |
| inversione contabile / reverse charge | reverse charge mechanism |
| split payment | split payment mechanism (PA) |
| fattura | invoice |
| fattura elettronica | electronic invoice |
| Sistema di Interscambio (SdI) | Italian e-invoicing exchange system (SdI) |
| autofattura | self-invoice |
| nota di credito | credit note |
| nota di debito | debit note |
| dichiarazione IVA annuale | annual VAT return |
| LIPE (liquidazioni periodiche IVA) | periodic VAT settlements |
| esterometro | foreign-transactions reporting (now incorporated in SdI) |
| plafond IVA / esportatore abituale | VAT plafond / habitual exporter |
| dichiarazione d'intento | declaration of intent (for habitual exporters) |
| rappresentante fiscale | fiscal representative |
| identificazione diretta | direct VAT identification (for non-residents) |
| OSS (One Stop Shop) | One Stop Shop (OSS) |
| IOSS (Import One Stop Shop) | Import One Stop Shop (IOSS) |
| partita IVA | VAT identification number / VAT number |

## 4. Withholding Taxes and Cross-Border

| Italian | English |
|---|---|
| ritenuta alla fonte | withholding tax (WHT) |
| ritenuta a titolo d'acconto | withholding on account |
| ritenuta a titolo d'imposta | final / definitive withholding tax |
| sostituto d'imposta | withholding agent |
| dividendi in uscita | outbound dividends |
| interessi attivi / passivi | interest income / interest expense |
| canoni / royalties | royalties |
| compensi a non residenti | payments to non-residents |
| beneficiario effettivo | beneficial owner |
| certificato di residenza fiscale | certificate of tax residence |
| convenzione contro le doppie imposizioni | double tax treaty (DTT) |
| direttiva madre-figlia | Parent-Subsidiary Directive |
| direttiva interessi e canoni | Interest and Royalties Directive |
| esenzione da ritenuta | withholding tax exemption |
| Modello 770 | Form 770 (annual WHT return) |

## 5. Tax Residency, PE and Source

| Italian | English |
|---|---|
| residenza fiscale | tax residency |
| residente fiscale | tax resident |
| non residente | non-resident |
| sede legale | registered office |
| sede dell'amministrazione | place of administration |
| oggetto principale dell'attività | main object of activity |
| esterovestizione | foreign incorporation with effective Italian residence (anti-abuse rule, Art. 73(5-bis) TUIR) |
| stabile organizzazione | permanent establishment (PE) |
| stabile organizzazione personale | dependent agent PE |
| stabile organizzazione materiale | fixed-place PE |
| stabile organizzazione occulta | hidden / undisclosed PE |
| forza di attrazione | force of attraction |
| principio dell'utile mondiale | worldwide income principle |
| reddito di fonte italiana | Italian-source income |
| trasferimento di sede / exit tax | transfer of seat / exit tax (Art. 166 TUIR) |
| imposta in ingresso / step-up | step-up in basis (Art. 166-bis TUIR) |

## 6. Transfer Pricing and Anti-Avoidance

| Italian | English |
|---|---|
| transfer pricing / prezzi di trasferimento | transfer pricing (TP) |
| principio di libera concorrenza | arm's length principle |
| operazioni infragruppo | intra-group transactions |
| documentazione TP / masterfile + countryfile | TP documentation (masterfile + local file) |
| oneri documentali | documentation requirements (penalty protection) |
| rendiconto Paese per Paese (CbCR) | country-by-country report (CbCR) |
| accordo preventivo (ruling internazionale) | advance pricing agreement (APA) |
| interpello sui nuovi investimenti | advance ruling on new investments |
| controlled foreign companies (CFC) | controlled foreign company rules |
| paesi a fiscalità privilegiata / black list | low-tax jurisdictions / black list |
| disciplina anti-elusiva generale (abuso del diritto) | general anti-avoidance rule (GAAR — Art. 10-bis L. 212/2000) |
| disciplina anti-elusiva specifica | specific anti-avoidance rule (SAAR) |
| sostanza economica | economic substance |
| anti-hybrid (ATAD II) | anti-hybrid rules (ATAD II) |
| limite alla deducibilità degli interessi (30% ROL) | interest limitation (30% EBITDA, ATAD I) |
| direttiva ATAD | ATAD (Anti-Tax Avoidance Directive) |
| principio di inerenza | inherence principle (deductibility nexus) |
| transazione simulata | sham transaction |
| operazione elusiva / abusiva | abusive / avoidance arrangement |
| Pillar 2 / imposta minima globale | Pillar Two / global minimum tax |
| QDMTT / IIR / UTPR | QDMTT / IIR / UTPR (Pillar Two charging mechanisms) |

## 7. Tax Procedure and Compliance

| Italian | English |
|---|---|
| dichiarazione dei redditi | income tax return |
| Modello Redditi | Modello Redditi (income tax return form — PF / SP / SC / ENC) |
| Modello 730 | Modello 730 (simplified PIT return) |
| Modello Unico | Modello Unico (legacy combined return) |
| versamento d'imposta | tax payment |
| Modello F24 | Form F24 (unified payment form) |
| acconto d'imposta | advance tax payment / installment |
| primo / secondo acconto | first / second installment |
| saldo | balancing payment |
| credito d'imposta | tax credit |
| compensazione | set-off / offset (of credits and debits) |
| rimborso d'imposta | tax refund |
| ravvedimento operoso | voluntary correction with reduced penalties |
| dichiarazione integrativa | amended return |
| termine di prescrizione | prescription / limitation period (substantive) |
| termine di decadenza | forfeiture period (procedural — must be acted on by) |
| accertamento | tax assessment |
| avviso di accertamento | notice of assessment |
| accertamento esecutivo | enforceable assessment (immediate executive title) |
| accertamento con adesione | assessment by agreement (settlement procedure) |
| reclamo-mediazione | objection / administrative review with mediation |
| conciliazione giudiziale | judicial conciliation |
| acquiescenza | acquiescence (early payment with reduced penalties) |
| autotutela | self-correction by the tax authority |
| processo verbale di constatazione (PVC) | tax audit report (notice of findings) |
| controllo formale / liquidazione automatica | formal / automatic control |
| controllo sostanziale | substantive audit |
| verifica fiscale | tax audit / inspection |
| accesso, ispezione, verifica | access, inspection, verification (Art. 52 D.P.R. 633/1972) |
| Guardia di Finanza | Financial Police (tax police force) |
| segnalazione di operazioni sospette | suspicious transaction report (AML) |

## 8. Tax Authorities and Litigation

| Italian | English |
|---|---|
| Agenzia delle Entrate | Italian Revenue Agency (Agenzia delle Entrate) |
| Agenzia delle Dogane e dei Monopoli | Italian Customs and Monopolies Agency |
| Agenzia delle Entrate – Riscossione | Italian Revenue Collection Agency (formerly Equitalia) |
| Direzione Provinciale | provincial tax office |
| Direzione Regionale | regional tax office |
| Garante del Contribuente | Taxpayer Ombudsman |
| Statuto del Contribuente | Taxpayer's Charter (L. 212/2000) |
| interpello | tax ruling request |
| interpello ordinario | ordinary ruling |
| interpello probatorio | evidentiary ruling |
| interpello anti-abuso | anti-abuse ruling |
| interpello disapplicativo | non-application ruling |
| ruling internazionale / accordi preventivi | international ruling / advance pricing agreement |
| processo tributario | tax litigation |
| Corte di Giustizia Tributaria di primo grado | Tax Court of First Instance (formerly Commissione Tributaria Provinciale) |
| Corte di Giustizia Tributaria di secondo grado | Tax Court of Second Instance (formerly Commissione Tributaria Regionale) |
| Corte di Cassazione – sezione tributaria | Court of Cassation – Tax Section |
| ricorso tributario | tax appeal / tax claim |
| sospensione della riscossione | stay of collection |
| sentenza tributaria | tax judgment |
| giudicato tributario | res judicata in tax matters |
| sanzioni tributarie | tax penalties (administrative) |
| sanzioni penali tributarie | criminal tax penalties (D.Lgs. 74/2000) |
| dichiarazione infedele | inaccurate / dishonest return (offense) |
| dichiarazione fraudolenta | fraudulent return (offense) |
| omessa dichiarazione | failure to file (offense) |
| omesso versamento di IVA | failure to pay VAT (offense) |
| indebita compensazione | undue set-off (offense) |
| sequestro per equivalente | equivalent-value seizure (criminal tax) |

## 9. M&A and Reorganization Tax Interface

For full M&A drafting terminology see `italian-corporate-ma-jv.md`. The terms below
are the substantive tax concepts that recur in deal documents.

| Italian | English |
|---|---|
| share deal | share deal |
| asset deal | asset deal |
| cessione di partecipazioni | transfer of shareholdings |
| cessione d'azienda / di ramo d'azienda | transfer of business / business unit (going concern) |
| conferimento d'azienda | contribution of a business in kind |
| conferimento di partecipazioni | contribution of shareholdings |
| scambio di partecipazioni | exchange of shareholdings |
| fusione | merger |
| fusione per incorporazione | merger by absorption |
| scissione | demerger / split |
| scissione totale / parziale | full / partial demerger |
| operazione fiscalmente neutrale | tax-neutral / qualifying reorganization |
| continuità dei valori fiscali | carry-over of tax values |
| affrancamento (riallineamento) | step-up / re-alignment of tax basis (substitute tax election) |
| disavanzo da fusione / scissione | merger / demerger goodwill (book) |
| avanzo da fusione / scissione | merger / demerger surplus |
| riserve in sospensione d'imposta | tax-suspended reserves |
| riporto delle perdite (Art. 84 TUIR) | loss carry-forward |
| limite al riporto perdite post-fusione | post-merger loss restrictions (Art. 172(7) TUIR — vitality test) |
| test di vitalità | vitality test (post-merger / scission loss usability) |
| imposta di registro su atti societari | registration tax on corporate deeds |
| holding period (12 mesi) | 12-month holding period (PEX) |
| white list | white list jurisdictions (PEX residency requirement) |
| garanzie e indennizzi fiscali | tax warranties and tax indemnities |
| tax claim | tax indemnity claim |
| straddle period | straddle period (period spanning closing) |
| pre-closing tax period | pre-closing tax period |

## 10. Personal Taxation and Inheritance

| Italian | English |
|---|---|
| reddito complessivo | overall taxable income |
| no-tax area | basic tax-free allowance |
| detrazioni per familiari a carico | deductions for dependants |
| oneri deducibili dal reddito | items deductible from taxable income |
| oneri detraibili dall'imposta | items deductible from tax (tax credits) |
| detrazione 19% spese sanitarie | 19% deduction for medical expenses |
| superbonus / bonus edilizi | super-bonus / building bonuses (cessione del credito) |
| cessione del credito d'imposta | assignment of tax credit |
| sconto in fattura | invoice discount mechanism |
| TFR (trattamento di fine rapporto) | end-of-employment indemnity (TFR) |
| tassazione separata | separate taxation (for severance, arrears) |
| imposta sostitutiva sui redditi finanziari | substitute tax on financial income (currently 26%) |
| capital gain qualificato / non qualificato | qualified / non-qualified capital gain (legacy distinction, harmonized at 26%) |
| imposta di successione | inheritance tax |
| imposta sulle donazioni | gift tax |
| franchigia | tax-free threshold (e.g., €1m for spouse/children) |
| coacervo | aggregation of prior gifts (for inheritance tax) |
| collazione | hotchpot / collation (civil-law concept, often relevant) |
| trust | trust (Italian recognition under the Hague Convention) |
| disponente | settlor |
| trustee | trustee |
| beneficiario | beneficiary |
| guardiano (protector) | protector |

## 11. Tax Incentives and Special Regimes

| Italian | English |
|---|---|
| credito d'imposta investimenti Mezzogiorno | tax credit for investments in Southern Italy |
| ZES (Zone Economiche Speciali) | special economic zones (ZES) |
| ZLS (Zone Logistiche Semplificate) | simplified logistics zones |
| zona franca urbana | urban free zone |
| Industria 4.0 / Transizione 4.0 | Industry 4.0 / Transition 4.0 (super-/hyper-depreciation) |
| iper-ammortamento | hyper-depreciation |
| nuova Sabatini | "new Sabatini" capital-investment incentive |
| regime tonnage tax | tonnage tax regime |
| regime forfettario (€85.000) | flat-rate regime for small self-employed (€85k threshold) |
| flat tax neo-residenti | flat tax for HNW new residents (€100k / €200k) |
| regime impatriati | impatriate regime (50% / 90% income exclusion historically; reformed 2024) |
| regime per ricercatori e docenti | regime for inbound researchers and academics |
| regime pensionati esteri (Art. 24-ter TUIR) | regime for foreign pensioners moving to southern Italy (7% flat rate) |

## 12. Customs and Excise

| Italian | English |
|---|---|
| dogana | customs |
| dazio doganale | customs duty |
| valore in dogana | customs value |
| classificazione tariffaria | tariff classification |
| Tariffa Doganale Comune (TARIC) | Common Customs Tariff (TARIC) |
| origine preferenziale | preferential origin |
| origine non preferenziale | non-preferential origin |
| informazione tariffaria vincolante (ITV) | binding tariff information (BTI) |
| informazione vincolante in materia di origine (IVO) | binding origin information (BOI) |
| AEO (operatore economico autorizzato) | authorized economic operator (AEO) |
| regime di perfezionamento attivo | inward processing |
| regime di perfezionamento passivo | outward processing |
| deposito doganale | customs warehousing |
| prodotti sottoposti ad accisa | excisable products |
| deposito fiscale | tax warehouse / bonded warehouse |
| EMCS | EMCS (excise movement and control system) |

## 13. Standard Verbal Anchors

| Italian | English |
|---|---|
| ai fini IVA | for VAT purposes |
| ai fini delle imposte sui redditi | for income-tax purposes |
| salvo diversa disposizione di legge | unless otherwise provided by law |
| fatturazione separata | separate invoicing |
| fattura esente IVA ex Art. … D.P.R. 633/1972 | invoice VAT-exempt under Article … of D.P.R. 633/1972 |
| operazione non soggetta a IVA per carenza del presupposto territoriale | supply outside the scope of VAT for lack of territoriality |
| il prezzo si intende al netto / al lordo di IVA | the price is exclusive / inclusive of VAT |
| con applicazione del meccanismo dell'inversione contabile | with application of the reverse-charge mechanism |
| la ritenuta è applicata a titolo d'acconto / a titolo d'imposta | the withholding is applied on account / as a final tax |
| il Venditore manleva e tiene indenne l'Acquirente da qualunque passività fiscale | the Seller indemnifies and holds the Purchaser harmless against any tax liability |
| relativa ai periodi d'imposta antecedenti la data di esecuzione | relating to tax periods preceding the completion date |
| in conformità alla normativa fiscale tempo per tempo vigente | in accordance with tax legislation in force from time to time |

## 14. Section Headings (Recurring)

| Italian | English |
|---|---|
| DEFINIZIONI FISCALI | TAX DEFINITIONS |
| DICHIARAZIONI E GARANZIE FISCALI | TAX REPRESENTATIONS AND WARRANTIES |
| INDENNIZZO FISCALE / TAX COVENANT | TAX INDEMNITY / TAX COVENANT |
| GESTIONE DELLE VERIFICHE FISCALI | CONDUCT OF TAX AUDITS |
| RIMBORSI FISCALI | TAX REFUNDS |
| COLLABORAZIONE IN MATERIA FISCALE | TAX CO-OPERATION |
| TRATTAMENTO IVA | VAT TREATMENT |
| RITENUTA E LORDIZZAZIONE | WITHHOLDING AND GROSS-UP |
| IMPOSTE SUL TRASFERIMENTO | TRANSFER TAXES |

## 15. Notes — Translator Guidance

- **IRES vs "corporate tax"**. IRES (currently 24%) is Italy's corporate income tax.
  Translate as "corporate income tax (IRES)" on first mention. Don't translate as
  "corporation tax" (UK-only) or "company tax" (informal).
- **IRAP — no English equivalent.** IRAP is a regional tax on net production value
  (broadly value added: wages + interest + profit), not a profit tax. There is no
  direct foreign analogue. Always translate as "regional production tax (IRAP)" with
  a translator's note on first substantive use; never as "regional income tax".
- **IVA = VAT**. Italian IVA is the EU VAT regime. Always translate as "VAT" — not
  "GST" or "sales tax". Italian VAT rates: standard 22%, reduced 10% and 5%, super-
  reduced 4%, plus 0% (zero rate) for exports and intra-Community supplies.
- **Imposta di registro**. The Italian registration tax operates on transactional
  documents (deeds, contracts, court orders) at fixed or proportional rates. It is
  conceptually similar to UK stamp duty but operates on the registration of the
  document, not its execution. Translate as "registration tax" or "registration
  duty"; flag where a UK reader might assume "stamp duty".
- **Ritenuta — never "retention tax"**. *Ritenuta alla fonte* is "withholding tax".
  *Sostituto d'imposta* is "withholding agent". *Ritenuta a titolo d'acconto* =
  withholding on account; *ritenuta a titolo d'imposta* = final / definitive
  withholding. The distinction matters because the latter discharges the recipient's
  liability while the former is creditable against final tax.
- **Esterovestizione**. Anti-abuse doctrine treating a foreign-incorporated entity
  with effective Italian residence as Italian-resident for tax purposes (Art. 73(5-bis)
  TUIR — rebuttable presumption where the foreign entity is controlled by Italian
  residents and holds majority Italian-resident directors). Translate as "foreign
  incorporation with effective Italian residence" or "anti-foreign-incorporation
  rule" and explain — there is no clean English single-word equivalent.
- **Stabile organizzazione**. The Italian rendering of "permanent establishment"
  (PE). The OECD PE concept applies, with Italian-specific case-law on hidden /
  undisclosed PEs (*stabile organizzazione occulta*). Translate as "permanent
  establishment" and use "hidden PE" or "undisclosed PE" for the *occulta* variant.
- **Prescrizione vs decadenza**. In Italian tax procedure, *decadenza* is the
  forfeiture period within which the tax authority must act (typically by 31
  December of the 5th year after the year of filing, or 7th if no return was filed
  — Art. 43 D.P.R. 600/1973). *Prescrizione* is the longer-tail substantive
  limitation on the right to collect. Translate *decadenza* as "forfeiture period"
  and *prescrizione* as "prescription period" or "statute of limitations" — and add
  a translator's note distinguishing the two.
- **Accertamento con adesione, reclamo-mediazione, conciliazione**. These are
  three distinct administrative/early-resolution procedures under Italian tax law:
  *accertamento con adesione* (D.Lgs. 218/1997) is post-PVC settlement; *reclamo-
  mediazione* is the pre-litigation step for disputes up to €50,000; *conciliazione
  giudiziale* is in-court settlement. Translate functionally and explain.
- **Modello 770**. The annual return filed by withholding agents reporting amounts
  withheld. Translate as "Form 770 (annual withholding tax return)" and keep the
  Italian form name on first mention.
- **Cessione d'azienda / di ramo d'azienda**. The transfer of a going concern
  (TOGC) under Italian law is not a VAT-relevant supply (Art. 2(3)(b) D.P.R.
  633/1972), but is subject to registration tax on the underlying asset values.
  This is the inverse of a share deal (no VAT, no registration on the share
  consideration; only fixed registration tax). Always identify which deal structure
  the source contemplates.
- **Tax warranties + tax indemnity / tax covenant.** Italian SPAs typically include
  both: *dichiarazioni e garanzie fiscali* (tax warranties — backwards-looking
  representations on filings, payments, returns) and *indennizzo fiscale / tax
  covenant* (pound-for-pound indemnity for pre-closing tax). Translate keeping the
  English drafting convention; the Italian *manleva fiscale* is best rendered as
  "tax indemnity".
- **Affrancamento**. A substitute-tax election allowing the buyer (or in
  reorganizations, the surviving entity) to step up the tax basis of acquired
  assets to fair value, paying a substitute tax (typically 12-16% depending on the
  asset and regime). Translate as "step-up of tax basis (by substitute-tax
  election)" or "tax re-alignment". This is a recurring planning concept in Italian
  M&A.
- **Bonus edilizi / superbonus / cessione del credito**. The Italian building-
  bonus mechanisms (110% superbonus, façade bonus, ecobonus, sismabonus) are
  delivered as tax credits that can be assigned (cessione del credito) or applied as
  invoice discounts (sconto in fattura). The 2023–2024 reforms tightened the
  assignment regime sharply. Always render as "tax credit" and "assignment of tax
  credit" — and flag the dated regulatory landscape.
- **Pillar Two / global minimum tax**. Italy implemented Pillar Two via D.Lgs.
  209/2023 effective 1 January 2024. Use the OECD English terminology (IIR, UTPR,
  QDMTT, GloBE) without translation; *imposta minima nazionale* = QDMTT.
- **Fatturazione elettronica e Sistema di Interscambio (SdI)**. Italy was the EU
  pioneer of mandatory B2B/B2C electronic invoicing through the Sistema di
  Interscambio (SdI), the central exchange platform run by Agenzia delle Entrate.
  Translate as "electronic invoicing through the Italian e-invoicing exchange
  system (SdI)" — keeping the Italian acronym on first mention.
- **Currency / number formats**. Italian uses comma as decimal separator and dot as
  thousands separator (1.234,56 €). Convert to US/UK English style ($1,234.56 / £1,234.56 or
  €1,234.56) unless the user specifies otherwise. Always preserve the currency
  symbol and the exact figure.
