Italy issues 2023 Budget Law

On 29 December 2022, the Italian Parliament approved the Budget Law for 2023 (the Law).

The Law is generally effective from 1 January 2023 and provides for several tax measures that may be of interest to multinational enterprises (MNEs) with Italian operations, including: (i) Limited deduction of costs incurred with black-listed jurisdictions; (ii) Transition tax on undistributed profits from low-tax subsidiaries; (iii) Nonresidents’ capital gains on indirect transfers of Italian real estate; (iv…