Stamp Tax

Exemption on short term treasury needs

The Stamp Tax exemption on loans intended to cover short term treasury needs, when granted by any company to dominated companies or to companies in which they hold not less than 10% of the share capital or with an acquisition value of not less than EUR 5 million, will only apply in case of a 1-year consecutive ownership period (or maintained for the same period if held since incorporation).

The exemption no longer mentions loans granted by venture capital companies to companies in which they hold a participation; accordingly, the general exemption rule applies.

The exemption for short term treasury needs will only apply when the lender is a company.

Exemption for cash pooling contracts

The Stamp Tax exemption for financial transactions between companies in a domain or group relationship shall apply to loans not exceeding a one-year period, under a cash pooling contract.

The law defines the existence of a relationship of domain or group when a company, so-called dominant, holds, for more than one year, directly or indirectly, at least 75% of the share capital of a so-called dominated company or companies, provided that such participation grants more than 50% of the voting rights.

Consumer credit

The 50% increase in the Stamp Duty Tax in consumer credit is maintained for 2020. Additionally, the Stamp Tax rates are increased to (i) o.2115% for credits with a maturity of less than one year per month or fraction (currently 0.192%); (ii) 2.64% for credits with a period equal to or greater than one year, as well as for credits with a maturity of five years or more (currently 2.4% for both cases). In case of consumer’ credit with an undetermined period, the applicable rate on the monthly average debt will increase to 0.2115% (currently 0.192%).

Accounting records

Taxpayers are required to register in their accounts any changes to the information included in the Monthly Stamp Tax Statement.

Business restructuring

It is proposed to apply a Stamp Tax exemption on the transfer of ongoing concern (commercial, industrial or agricultural establishments) within the context of a business restructuring.

Legislative authorization – Export-enhancing schemes

A legislative authorisation is granted, subject to the approval of the European Union, for the creation of a Stamp Tax exemption on premiums and commissions on exportation credit insurance policies, with or without State guarantee, with possible inclusion of other forms of financing guarantees.