With order no. 3591/2026, the Italian Supreme Court reaffirms, in the context of corporate tax residency (so-called esterovestizione), that the decisive criterion under Article 73(3) of the TUIR is the place where the entity’s effective management and decision-making activities are carried out. The mere existence of a registered office or organizational structure abroad is not sufficient to exclude Italian tax residency where the centre of decision-making is located in Italy.
The principle, highly relevant for multinational groups, underscores the need for alignment between formal structures and the actual location of management functions. The topic is further analysed in a case law note published in La Circolare Tributaria no. 12/2026.
