GPs face tax hike in Italy

Italian GPs are facing larger tax bills after the government proposed increasing the tax on non-salary financial income, such as capital gains, dividends and interest, from 20 percent to 26 percent.

The tax changes are part of a much larger set of changes proposed by the Italian government to kick-start the nation’s economy. The proposal looks set to be ratified by the Italian Parliament into law, with possible amendments, within 60 days.

The effective date of the new 26 percent rate will apply to capital gains realized from July 1, 2014. However until November 16 GPs can pay a 20 percent substitute tax on unrealized capital gains accrued until June 30.

The tax hike comes at a time when the EU is mulling its own financial transaction tax (FTT). The FTT would hit GPs by imposing a 0.1 percent levy on most equity and debt transactions originating in Europe.

The tax is due to be enforced in 11 participating EU countries, including Italy, through “enhanced cooperation” – a term describing nine or more EU member states deciding to move ahead with an initiative proposed by the Commission once it proves too difficult to reach unanimous agreement in all member states.

The 10 other countries participating are: France, Germany, Belgium, Austria, Slovenia, Portugal, Greece, Slovakia, Spain and Estonia.