Overview of corporate tax reforms for 2008

Italy's Budget Law for 2008 contains significant changes with regard to corporate income tax. This article analyses the main reforms with regard to the corporate income tax and regional tax rates: the participation exemption rules; statutory withholding tax on outbound dividends within the European Union; the tax basis in tax-free reorganizations; thin capitalization rules and a new limitation on the deduction of interest; benefits under the tax consolidation regime; and deferral of certain deductions and increase of the tax base.