Tax (Joint Ventures)

1. Are partnerships that are established under the laws of your jurisdiction tax transparent in your jurisdiction? Is there any other type of entity that is capable of being established under the laws of your jurisdiction that is tax transparent in your jurisdiction (such as US LLCs are in the United States)?

Yes, partnerships are tax transparent in Italy. Profits and losses accrue directly to the partners for income tax purposes. The Italian Civil Code and the Italian Tax Code (TUIR) recognises three types of partnership, subject to the same fiscal regime.

Under Law No. 80 of 7 April 2003, Italian corporations and limited liability entities (società per azioni and società a responsabilità limitata), which would normally be taxed as an opaque entity, can opt for the transparency regime. If they do opt for the transparency regime, their income and losses accrue directly to the shareholders.