Decision no. 413/2/2026 of the Brescia First-Instance Tax Court recognises the right to a foreign tax credit in respect of capital gains arising from the disposal of foreign shareholdings by individuals and subject in Italy to the mandatory 26% substitute tax. The ruling extends to capital gains the principles previously established by the Italian Supreme Court in relation to foreign-source dividends, holding that the exclusion under the Italy-Brazil Double Taxation Treaty applies only where the taxpayer has the option to elect for substitute taxation, rather than where that regime is mandatory by law. The decision may therefore have significant implications for refund claims, subject to an assessment of the specific treaty applicable in each case.
Published in La Circolare Tributaria no. 31/2026 by Euroconference.
