Skip to content With Response No. 170/2026, the Italian Revenue Agency has ruled out that the manager of a digital circulation register can be treated as one of the authorised intermediaries provided for by Legislative Decree No. 239/1996 and, consequently, use Form 118/IMP in the procedure for the non-application of the substitute tax. [1]
The clarification offers an opportunity to recap what Form 118/IMP is for, who may file it and what documentation the non-resident taxpayer must instead prepare in order to benefit from the exemption regime.
Table of contents
- The case and the Agency’s clarification
- Form 118/IMP: what it is for and who may file it
- The non-resident’s self-certification
- The procedure to benefit from the exemption
- The support of Studio Arletti & Partners
The case and the Agency’s clarification
The ruling request concerns a company that manages a DLT-based register for the issuance and circulation of financial instruments in digital form, including bonds and debt securities.
The company asked to be treated like traditional financial intermediaries and, consequently, to be able to collect the documentation of non-resident investors, make the required tax communications and access the procedure through Form 118/IMP.
The Italian Revenue Agency ruled out this possibility, specifying that, in the absence of an express legal provision, the manager of the digital register is not among the intermediaries identified by Legislative Decree No. 239/1996 and Ministerial Decree No. 632/1996 and therefore cannot act as a first-tier bank in the procedure. Consequently, it cannot collect non-residents’ self-certifications or file Form 118/IMP. [2]
For digital financial instruments that are not deposited with the intermediaries identified by the legislation, the Agency also clarified that Article 5, paragraph 2, of Legislative Decree No. 239/1996 applies. The substitute tax must therefore also be applied to non-resident persons; the latter, if they meet the requirements for the exemption, can assert their right by subsequently filing a refund request.
Form 118/IMP: what it is for and who may file it
Form 118/IMP is used in the procedure for the non-application of the substitute tax provided for by Legislative Decree No. 239/1996. [3] The procedure concerns interest, premiums and other income arising from bonds and similar securities falling within the scope of the legislation. [4] The request to use the procedure by the second-tier bank is provided for by Article 1, paragraph 3, of Ministerial Decree of 4 December 1996, No. 632. [3]
The form is not filed by the individual non-resident investor, but by the intermediary qualified as a second-tier bank: ordinarily, a bank or a securities brokerage firm (SIM) resident in Italy, or an Italian permanent establishment of a non-resident bank or SIM, acting as custodian or sub-custodian of the securities, which maintains direct electronic relations with the tax authorities for the purposes of the procedure. The equivalences provided for by the legislation for certain non-resident entities and companies participating in centralised securities administration systems, which maintain the required direct relations with the tax authorities, remain unaffected. [5]
Form 118/IMP therefore concerns the intermediary’s access to the procedure; the individual investor’s right to the exemption instead depends on meeting the substantive requirements and complying with the documentation obligations set out in Articles 6 and 7 of Legislative Decree No. 239/1996. [4]
The non-resident’s self-certification
The non-resident who wishes to benefit from the non-application of the substitute tax must provide the intermediary with the self-certification provided for by Article 7, paragraph 2, letter a), of Legislative Decree No. 239/1996, [4] drawn up according to the template approved by Ministerial Decree of 12 December 2001, [5] duly dated and signed.
For an individual, the self-certification documents that the requirements for accessing the exemption are met. In particular, the person must be the beneficial owner of the income [5] and a tax resident in a State or territory that allows an adequate exchange of information with Italy, pursuant to Article 6 of Legislative Decree No. 239/1996. [4] The exemption concerns interest, premiums and other proceeds of the securities falling within the scope of the provision, not all of the non-resident’s financial income indiscriminately.
For the purposes of the non-application of the tax, the self-certification must be submitted before the payment of the income or the sale or redemption of the securities [6] and remains effective until revoked, without the need for a general annual renewal.
The procedure to benefit from the exemption
The procedure may therefore involve two distinct intermediaries: the first-tier bank, which maintains the relationship with the investor and collects the relevant documentation, and the second-tier bank, with which the securities are deposited or sub-deposited and which maintains the electronic relations required with the tax authorities.
The investor delivers the self-certification to the first-tier bank, which checks that it has been properly completed, completes the certification within its remit concerning the deposit of the securities and the accuracy, on the basis of the information available to it, of the beneficiary’s identification data and declarations, and keeps a copy of the documentation. [5] A second copy is sent to the second-tier bank within 15 days of receipt. [5] [3]
The second-tier bank, having received the documentation and carried out the appropriate checks, keeps it available for the tax authorities. [3] When all the substantive and procedural conditions are met, it applies the regime of non-application of the substitute tax and makes the data communications required by law. [3] Keeping the self-certification and transmitting data to the tax authorities are separate obligations.
Where the deposit is made directly with the second-tier bank, the self-certification is submitted directly to the latter, which carries out the checks, acquires the documentation [5] and applies the exemption regime. [4]
The support of Studio Arletti & Partners
Studio Arletti & Partners can assist non-residents in verifying the requirements to benefit from the exemption and in preparing the self-certification provided for by Article 7 of Legislative Decree No. 239/1996, also supporting them in coordinating with the intermediary involved in the procedure.