Italian Court of Cassation holds domestic regime is applicable on distributions to nonresident mutual funds

The Court of Cassation held that the rate difference violated the principle of free movement of capital under Article 63 of the Treaty on the Functioning of the European Union.

Based on the decision, nonresident mutual funds are eligible for the same tax treatment as resident mutual funds.

Impacted nonresident mutual funds should consider the appropriate steps for filing for refund of the additional tax withheld or asserting claims already filed at the court level.