Italy to spread deductions of banks' tax assets for up to four years, budget shows
23/10/2024 11:56
ROME, Oct 23 (Reuters) - Italian banks will temporarily
face higher taxes on profits as the government intends to force
lenders to spread tax deductions stemming from past losses for
up to four years, Rome's 2025 budget showed on Wednesday.
The move is expected to result in a contribution from banks
to Italy's strained state finances worth more than 2.5 billion
euros ($2.70 billion), the government has said.
Under the budget, banks will have to use 2025 tax credits,
known as deferred tax assets, or DTAs, to lower their taxes over
four years between 2026 and 2029, while the use of DTAs related
to 2026 will be spread over the following three years.
Italy's largest banks include Intesa Sanpaolo ISP.MI ,
UniCredit CRDI.MI , Banco BPM BAMI.MI and state-owned Monte
dei Paschi di Siena BMPS.MI .
The measure is particularly relevant for MPS, which has
significant DTAs on its balance after years of steep losses and
had started reaping benefits now that it's once again
profitable.
Italy's Treasury needs to cede control of MPS by the end of
this year to meet re-privatisation terms agreed with the
European Union at the time of a costly 2017 bailout, people have
previously said.
The Treasury also expects to collect 1 billion euros from
insurers by changing in the budget the payment terms of stamp
duties for some insurance policies.
($1 = 0.9271 euros)
(Reporting by Giuseppe Fonte and Valentina Za; Editing by
Sharon Singleton)
((giuseppe.fonte@thomsonreuters.com; +390680307711;))