Registration tax, the taxation that must be applied to the transaction between heirs and third parties is that with rate proportional to 3 per cent.
The Revenue Agency explains this in the answer to the question number 390 of 7 June 2021.
The subject of the practice document is one transaction between two heirs and a third party fictitious joint holder of the deceased’s assets, in which the latter undertakes to pay the heirs the sum corresponding to his share of assets.
In providing clarifications, the Revenue Agency expresses itself differently from the solution proposed by the instant.
Registration tax, the tax on the transaction between heirs and third parties has a rate of 3 percent
The registration tax on the transition between heirs and third parties must apply therate proportional to 3 per cent.
To clarify this is the response to the appeal number 390 of June 7, 2021 of the Revenue Agency.
- Revenue Agency – Response to the request number 390 of 7 June 2021
- Taxation of a deed of settlement between heirs and third parties.
As usual, the idea arises from a concrete case presented by the instant. Specifically a fictitious third co-holder of the deceased’s estate, through an unauthenticated private agreement stipulated with the heirs, he renounces to assert the share of a third party in his own name and undertakes to pay the heirs the amount corresponding to this fictitious one.
Before providing the necessary clarifications, the Revenue Agency proceeds with the classification of the case.
Based on the opinion of the tax authorities, there is a transaction between the heirs and a third party, as indicated in thearticle 1965 of the civil code.
This article provides for the following:
“The settlement is the contract by which the parties, by making mutual concessions, put an end to a dispute that has already begun or prevent a dispute that may arise between them. With the reciprocal concessions it is also possible to create, modify or terminate relationships other than the one that was the subject of the claim and dispute of the parties. “
The act is part of those of settlement nature, to avoid a current or potential dispute.
To regulate these acts is thearticle 29 of the TUR, which provides that:
“For transactions that do not involve transfer of ownership or transfer or establishment of rights in rem, the tax is applied in relation to the payment obligations deriving from it without taking into account the return obligations or those extinguished as a result of the transaction; if no payment obligations arise from the transaction, the tax is due in a fixed amount “
Since in the agreement in question there is no obligation to pay the third party, the Revenue Agency believes that it should apply the proportional registration tax at the rate of 3 per cent.
This rate is in fact envisaged for acts with a patrimonial content by article 9 of the Tariff, Part I, attached to the TUR.
Registration tax, taxation at 3 percent: clarifications on the solution proposed by the applicant
After clarifying what the correct taxation to be applied in the case of a transaction between heirs and third parties, the tax authorities also explain why the proposed solution differs from that suggested by the applicant.
The subject had indicated the registration tax but not the inheritance tax as the tax to be paid.
However, the rate indicated by the applicant is that of 1 per cent that applies to acts of a declarative nature.
The subject’s doubts were mainly linked to the clarifications of the Court of Cassation with order of 17 January 2019, n. 1141.
With regard to the order referred to, the Revenue Agency explains that the Court’s clarifications refer to a different case of testamentary succession.
The clarifications, in fact, concern the agreements between heir and legatee, for reinstate the rights of the injured party.
For the financial administration, the proposed solution is therefore not acceptable.