Italy-China Tax Treaty: Ratification Approved

On November 5th, the Italian Chamber of Deputies gave final approval to the ratification and execution of the Agreement between the Government of the Italian Republic and the Government of the People's Republic of China to eliminate double taxation on income and to prevent tax evasion and avoidance.

Among the main objectives of the agreement, signed in 2019 and unanimously approved in November 2024, are the prevention of tax evasion and avoidance, the creation of more favorable conditions for Italian businesses operating in China, and an update to the existing bilateral regulations on direct taxation in relations between the two countries.

The China-Italy Chamber of Commerce, along with the Embassy and Consular Network, has repeatedly emphasized the importance of the approval process for the ratification and entry into force of the agreement through meetings during ministerial missions and on visits to Italy with the Parliament and Italian institutions.

On September 11th, 2024, the Italian Senate approved the bill for the ratification of the new tax treaty with China, subsequently transmitting it to the Chamber of Deputies, which gave final approval on November 5th.

This is a highly anticipated result for Italian companies in China, which will now be able to better plan profit repatriation strategies. More broadly, the entry into force of the new tax convention in 2025 is expected to bring greater benefits for Italy-China bilateral investments.

Click here to read the source.