The Lead Story
Italy slims its dividend exemption , and multinationals take note
The Big Picture. Italy’s 2026 Budget Law pares back the long-standing break on inter-company dividends, a move the government says will curb abuse and push holding companies to stay onshore. As International Tax Review explains, groups must now hit stricter ownership or value thresholds before dividends can flow untaxed.
The Details. • The old 95 % exemption survives, but only where a parent owns at least 25 % of the payer or the stake tops a set euro value. • Indirect holdings that once qualified automatically now face look-through tests. • Anti-avoidance wording tightens, letting tax officials chase artificial chains.
Why It Matters. Tax lawyers warn the tweak “could sway where groups park capital,” International Tax Review notes. EU alignment is the stated goal, yet the bill may nudge treasury centres to Milan instead of Malta. Bottom line: cash-rich groups must recalc models before the rules bite in July.
Around the Tax World
• Central America’s pull grows. Political calm and a web of trade deals are luring plants and funds, International Tax Review finds. Tax breaks matter, but rule-of-law talk seals the deal.
• Mosaic beefs up tax-risk cover. The insurer added underwriters across New York, London and Dubai to meet M&A demand, Reinsurance News reports. Deals want certainty , Mosaic sells certainty.
• Japan dangles a sales-tax cut. Prime Minister Sanae Takaichi set a Feb 8 snap election and pledged a temporary food tax break, per Bloomberg Law. Voters shop, so taxes on shopping matter.
• Cyprus plots reform on stage. The 9th Cyprus International Tax Conference, backed by Baker Tilly, will dive into BEPS 2.0 and a 2026 local overhaul, says cbn.com.cy.
• Nigeria rewires its tax code. A broad reset aims to lift revenue and trust, writes The Nation. Simpler rules, lower costs, bigger base , that’s the promise. For further insights into Nigeria's evolving tax framework, visit our Nigerian Tax Laws 2025 page or check out our Introduction To Nigerian Tax Laws article.
By the Numbers
Prime Number: 9 , That’s how many editions the Cyprus tax conference has clocked, underscoring how fast global reform keeps spinning.
Looking Ahead
All eyes are on Rome for clarifying guidance. All eyes are on Tokyo for that election-day verdict. Tax policy keeps moving , stay quick, stay ready.