In a press release published on its website, and reproduced in full below, the Minister of Economy and Finance announced the signing, by the Secretary for Relations with States, Paul Richard Gallagher, and the Minister of Economy and Finance, Pier Carlo Padoan, of a Convention on tax matters between the Holy See and Italy.
The reforms introduced since 2010 and the creation within the Holy See of Institutions with specific competence in economic and financial matters now allow full administrative cooperation, including for tax purposes. In view of the special importance of bilateral relations, Italy is the first country with which the Holy See has signed an agreement governing the exchange of information.
In line with the ongoing process towards the global affirmation of transparency in financial relations, the Convention incorporates the most up-to-date international standard on the exchange of information (Article 26 of the OECD Model) to govern cooperation between the competent authorities of the two Contracting Parties. The exchange of information will cover tax periods starting from 1 January 2009.
From the date of entry into force, the Convention will allow the full and simplified fulfilment of the tax obligations relating to financial assets held with entities carrying out financial activity in the Holy See by certain natural and legal persons who are tax resident in Italy. The same persons will be able to access a procedure for regularising those assets, with the same effects as established by Law no. 186/2014.
The Convention also implements the provisions of the Lateran Treaty concerning the exemption from taxes of the properties of the Holy See listed in that Treaty.
Finally, the Exchange of Notes of July 2007 between the Ministry of Foreign Affairs and the Secretariat of State, which provides for the notification through diplomatic channels of tax documents to entities of the Holy See, is incorporated into the Convention.
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