Insurance companies operating under the freedom to provide services (LPS) in Italy they can grant the mandate to act as withholding agent to a financial intermediary resident in Italy. But what happens if the mandate is revoked?
If the foreign company decides to revoke the mandate to operate as a withholding agent to the resident financial intermediary, it will have to deliver to the contractor a certification of the amounts withheld and paid as tax on the value of the insurance contracts (IVCA) so that the latter can use this amount as a tax credit to reduce the substitute tax on income from this policy.
The contractor can then choose alternatively between:
– appoint a financial intermediary residing in Italy to act as a withholding agent to whom he will entrust the task of collecting the income from the policy;
– indicate the income deriving from the policy and the IVCA tax credit directly in your tax return and pay the substitute tax.
These are the information provided by the Revenue Agency in circular 41 / E of 2012 and in the response to questioning 145/2020.