The SI and SK section of the 770/2019
The individuals who, during 2018, have had profits and remunerations, are required to complete the SI and SK section of the 770/2019 form before October 31, 2019. Please note that the news regarding the comparison of the tax treatment of individuals that received profits from qualifying shareholdings and non-qualified shareholdings do not influence the compilation if the 770 Form.
The SK section of the 770/2019 Form must be filled out by:
- IRES Individuals that during 2018 have had profit
- Individuals that during 2018 have had income that can be qualified as profit, deriving from association contracts in shareholdings, from financial instruments assimilated to shares, from interest reclassified as dividends according to the Thin Capitalization ex art. 98 TUIR
The SI section must be filled out:
- To indicate the profits earned during 2018 coming from participation in companies and entitites subject to corporate income tax;
To indicate data relating to proceeds equivalent to profits.
Must be noted that following the modifications made in the art. 2 paragraph 6 of the law decree of august 13 2011, n. 138 and by the la of September 14 2011 n. 148 the profits must be reported with exclusive reference to the date of the payment and not the date of the distribution of dividends.
The SK section reports the identifying data of the percipients resident in the territory of the State, of profits deriving from the participation in IRES individuals, resident and non-resident, in any form paid during the 2018 year, including those subjects to withholding tax or substitute tax.
This section should not be filled by:
- Residents who were subject to the substitute tax and withholding tax;
Shareholders of joined-stock companies or limited joined stock companies that have filed the shares and are waiting to attend the approval of the financial statements meeting.
Must be mentioned that individuals that have paid profits by applying a rate of withholding tax or substitute tax lower than the expected or exempt from withholding tax based on:
- Bilateral agreements against double taxation
Other international agreements, laws relating to international organizations;
Articles 27-bis and 27-ter of the D.P.R. n.600 of 1973;
are obligated to have the certificate issued by the competent foreign tax office, the certificate of the residence of the recipient, as well as the documentation proving the existence of the necessary conditions to take advantage of exemptions or reductions in the rate applied.
Art. 1 paragraphs 999 to 1006 of the 2018 Finance Act introduced some news, comparing the taxation of profits and capital gains from qualified holdings held in companies or entities subject to IRES by individuals not in the company regime, in that provided for non-qualified investments, thus making the 26% of withholding tax applicable to them as well.
It should be noted that, as the comparison is applicable to profits produced from 2018, it has no effect on the compilation of 770/2019 form.
To conclude, it can be assumed that the transitional legislation has allowed us not to influence the profits produced up to 2017, continuing to apply the percentages of competition to the existing income or as stated the 58.14% of the profits produced during 2017