with this circular we would like to investigate the "fiscal status" of Campione d’Italia, the only exclave in Italy, located on the shores of Lake Lugano.
Since the issuance of the TUIR in 1986, special tax regulations have been established for the residents of Campione, given that the currency in this municipality is the Swiss Franc and that its territory is completely surrounded by the Swiss Confederation.
Until 31.12.2019 Campione d’Italia was a non-EU customs territory, assimilated in all respects to Switzerland.
From 1 January 2020, the Municipality of Campione d’Italia and the Italian waters of Lake Lugano are included in the customs territory of the European Union and in the territorial scope of application of the general regulations on excise duties.
These territories, on the other hand, are still excluded from the territorial scope of application of VAT.
The innovations are the result of the changes made by EU Regulation no. 474 of 19 March 2019, and by Directive 2019/475 / EU, motivated by the fact that the historical reasons that justified the exclusion of Campione di Italia from the customs territory due to its territorial isolation and consequent economic disadvantages can no longer be considered current..
In order to ensure the application of these changes, the 2020 budget law introduced new tax measures relating to the Municipality of Campione d’Italia from 1 January 2020, both with reference to indirect and direct taxes.
The conversion law of the D.L. Relaunch modifies and expands some of the concessions introduced by the 2020 budget law with reference to direct taxes and IRAP.
In particular, Article 129-bis:
extends from 5 to 10 tax periods the reduction to 50% of income taxes and IRAP for natural persons and companies residing or registered with the Chamber of Commerce of Campione d'Italia, at the same time raising the ceiling of such concessions;
entrusts to a provision of the Revenue Agency the percentage of flat-rate reduction of business income produced in Campione d’Italia;
subjects the heating oil and electricity consumed and used in Campione d’Italia to excise duty at a reduced rate.
IRPEF / IRES and IRAP concessions
For 10 tax periods (instead of 5), a 50% reduction of IRPEF, IRES and IRAP is envisaged, pursuant to art. 188-bis of the TUIR, due on:
income of individuals who do not carry out business activities, registered in the registry of the Municipality of Campione d’Italia even after 20 October 2019;
income from self-employment relating to activities carried out in studies located in the municipality of Campione d’Italia even after 20 October 2019;
business income realized by sole proprietorships, partnerships and IRES subjects both resident and non-resident, registered with the Chamber of Commerce, Industry, Crafts and Agriculture of Como and having their registered office, or a local unit, in the municipality of Campione d'Italia, also after 20 October 2019.
These concessions are applied starting from the 2020 calendar year and in derogation of the de minimis aid rules referred to in EU Regulation n.1407 / 2013, they operate within the limit of 800,000 euros for each company, raised to 120,000 euros for fishing companies. and aquaculture and 100,000 euros for primary production companies of agricultural products.
Business income produced in Campione d’Italia
The income of individuals and business income produced in Campione d’Italia, under specific legal conditions, can be calculated in euros even if produced in francs, based on the current exchange rate, reduced by a flat rate of 30%.
This percentage (increased or reduced to an extent equal to the average annual percentage deviation recorded between the two currencies, is established with a provision of the Director of the Revenue Agency, to be issued by February 15 of each year) cannot in any case be less than 30%.
Article 129-bis paragraph 2 of the law converting the Relaunch Decree also entrusts this provision of the Revenue Agency with the determination of the flat rate reduction percentage of business income produced in Campione d'Italia, the measure of which cannot in any case be less than 30%.
Excise duties on energy products in Campione d’Italia
It is provided that:
- diesel fuel used as heating fuel in the territory of the Municipality of Campione d’Italia is subject to excise duty at a reduced rate of 201.50 euros per thousand liters (instead of the current rate of 403.2 euros per thousand liters). For these consumptions, the reductions in the cost of diesel fuel envisaged by law in the territories falling within mountainous areas do not apply;
- the electricity consumed in the Municipality of Campione d’Italia is subject to excise duty with the following reduced rates:
- € 0.001 for each kWh of energy used for any application in homes;
- € 0.0005 for each kWh of energy used in premises other than homes.
The excise measures apply from the date of authorization and remain in force for 6 years.
Entrepreneurs and freelancers resident or based in the Municipality of Campione d’Italia are NOT required to have a VAT number. In fact, nothing has changed at the end of VAT with the entry of the Municipality into the customs territory of the EU on 1 January 2020.
This is essential to ensure a level playing field between economic operators established in Switzerland and in the Italian municipality of Campione d'Italia through the application of a local indirect taxation regime, in line with Swiss value added tax. For VAT purposes, therefore, the territorial rules do not change.
Establishment of the ILCCI
The 2020 budget law established a local indirect taxation regime in line with the Swiss value added tax.
The new tax on consumption of Campione d'Italia (ILCCI), is intended to apply to the supply of goods, to the provision of services as well as to imports carried out in the territory of that Municipality for final consumption, including the introduction of goods from the territory of the EU. Art. 1 co. 559-572 of Law no. 160 (2020 budget law) governs the new tax on consumption of Campione d'Italia (ILCCI), intended to apply to the supply of goods, to the provision of services as well as to imports carried out in the territory of this Municipality for final consumption, including introduction of goods from the EU territory.
The final consumer is considered:
- those who purchase goods and services for purposes other than the exercise of a business, arts or professions;
- those who carry out operations excluded from the application of value added tax in accordance with Swiss federal law.
The proceeds of the ILCCI are attributed to the Municipality of Campione d’Italia.
The supplies of goods are considered to have been made to Campione d’Italia, if the goods at the time of delivery or making available are located in the territory of the Municipality.
The provision of services is territorially relevant:
- if they are rendered in the exercise of business, arts or professions by subjects who have their place of business in the territory of the Municipality.
- according to territorial criteria similar to those established by the Swiss federal law on value added tax, if they are rendered in the exercise of business, arts or professions by subjects not based in the territory of the Municipality.
The tax rates are applied to an extent equal to the percentages established by Swiss federal law for VAT. In Switzerland, the following are currently planned:
- a standard rate of 7.7%;
- - a special rate of 3.7% for hotel stays (breakfast included);
- a reduced rate of 2.5% for certain everyday goods (eg foodstuffs).
The ILCCI declaration is presented by the taxable persons to the Municipality, also in non-electronic form, by 30 June of the year following the one in which the operations are carried out, using the model that will be approved by decree of the Ministry of Economy and of Finance.
Our Tax Office is available for further clarifications and insights.