Law n ° 146 of October 13, 2020 ratifying and implementing the Convention between Italy and Gabon to avoid the double taxation of income taxes and prevent tax evasion was published in the Italian Official Gazette no. 275, of November 4, 2020.
According to the online journal of information and updates on Taxation, Budget and Accounting, Labor and Social Security, Funding and Grants, Management and Organization, www.ipsoa.it, the Law of ratification and execution of the Convention between Italy and Gabon aimed at avoiding the double taxation of income taxes and preventing tax evasion has been published in the Italian Official Journal. The Convention regulates the fiscal aspects of economic relations between the two countries, allowing a more efficient and more balanced distribution of the taxable matter.
Concretely, with this agreement, Italian investors in Gabon will benefit from a privileged position compared to economic operators of other nationalities. From a subjective point of view, the scope of the agreement concerns natural and legal persons residing in Italy and Gabon while, from an objective point of view, the Convention is limited to income tax. returned.
Regarding the taxes taken into account by the agreement, the Italian part includes the personal income tax, the corporate income tax and the regional tax on production activities (IRAP) . The objective perimeter for Gabon covers corporate tax, minimum flat rate tax, income tax and income tax on securities.
With regard to the question of residence, in accordance with Article 4 of the Convention, the notion of “resident of a Contracting State” is clarified, that is to say any person who, by virtue of the law of that State, is subject there to the tax of his domicile; of his residence; the seat of its management; or any other criterion of a similar nature. “However, this expression does not include persons who are subject to tax in this state solely for income they derive from sources located in that state,” the Official Gazette said.
However, when a natural person is considered to be a resident of both Contracting States, their situation is determined as follows: the person is considered to be resident of the State in which they have their permanent residence. When he has permanent residence in both states, he is considered a resident of the state in which his personal and economic relations are closest (center of vital interests).
If it is not possible to determine the State in which that person has the center of his vital interests, or if he has no permanent residence in any of the States, he is considered to be a resident of the State in which she usually resides. If that person habitually resides in both States or does not habitually reside in one or the other, he is considered to be a resident of the State of which he is a national and if he is a national of both States or of the either of them, the competent authorities of the Contracting States shall settle the question by mutual agreement.
