On 23 November 2020, Regulation No. 360494 (“2020 Regulation”) was issued, which sets out the new rules on transfer pricing documentation requirements. It replaces the previous Regulation No. 137654 of 29 September 2010 (“2010 Regulation”) and is effective as of the current tax year.
The new rules implement Art. 1, para. 6, and Art. 2, para. 4-ter, of Legislative Decree No. 471 of 18 December 1997, which introduced the penalty protection regime for taxpayers that submit documentation that enables the Italian tax authority to verify that the transfer prices are consistent with the arm’s length principle.
What are the main changes introduced in the 2020 Regulation?