How Tobin Tax and certain regulatory duties affect Block Trades in Italy

Italian Law No. 228 dated December 24, 2012, which approved the 2013 budget, contemplates, among others, a new tax applicable to certain financial transactions (the “Tobin Tax”).

The Tobin Tax will apply to transactions, even if executed abroad, involving shares and equity-like financial securities issued by both listed and non-listed companies resident in Italy and derivatives substantially underlying such securities. The tax will also apply to high-frequency trades relating to the above securities and derivatives occurring on the Italian financial markets. Issuance of new shares and transactions on debt securities will be outside the scope of the Tobin Tax.

1. The Tobin Tax applicable to Block Trades

As of March 1, 2013, Block Trades of shares issued by Italian companies will be subject to the Tobin Tax at the rate of 0.22% (i.e. the tax rate applicable to over the-counter transactions), levied on the transaction value. As of 2014, the tax rate will decrease to 0.20%. The Tobin Tax will be due irrespective of whether the Block Trades are executed outside of Italy and all the parties involved (other than the issuer) are not resident in Italy.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© White & Case LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.