Fiscal State Aid to Italian UCITS specialised small & medium-capitalized companies

The European Commission, with a Decision of September 6, 2005 declares that Italian Tax incentives to UCITS specialised in shares of small and medium capitalisation companies listed on regulated markets are incompatible State Aid.

The Commission with it's Decision of September 6, 2005 declared article 12 of Decree-Law No 269/2003 as introducing an incompatible State aid by means of art. 87 of the EU Treaty.

Said norm introduced tax incentives for certain undertakings for collective investment in transferable securities (investment vehicles) that are subject to Italian law.

In particular it stipulated that, as of the tax year in which certain conditions are met, the net operating result of those undertakings for collective investment in transferable securities that are specialised in shares of small- and mid-caps listed on a regulated market in the European Union (specialised investment vehicles) are subject to a 5 % tax, instead of the standard 12,5 % rate of tax.

[06 september 2005]

of Avv. Giovanni Mameli

Subjects (TAGS): Notion of Undertaking - Affects Competition - Fiscal State Aid -