LCA has obtained an important favorable ruling before the Tax Justice Court of First Instance of Pescara, which upheld the appeal filed by a foreign company operating in sports intermediation, recognizing the unlawfulness of the 30% withholding tax applied to the compensation received.
Under ruling No. 601/2026, filed on 21 July 2026, the Court held that compensation received by a sports agent operating through a commercial company constitutes business income rather than self-employment income. In the absence of a permanent establishment in Italy, such compensation is therefore not subject to the withholding tax provided for under Article 25 of Presidential Decree No. 600/1973.
The decision further clarifies that the deadline for requesting a refund of withholding taxes runs from the date they are paid to the Treasury, rather than from the date they are withheld, establishing a principle expected to have significant practical implications in tax disputes.
LCA assisted the appellant company with a team led by partner Giuseppe Pintaudi.
“This decision confirms a fundamental principle: the tax classification of compensation must reflect the actual nature of the activity carried out and the legal form of the entity performing it. The ruling provides important clarity both for operators in the sports sector and for all non-resident entities operating in Italy through commercial corporate structures, helping to strengthen legal certainty in an area characterized by frequent disputes,” comments Giuseppe Pintaudi.
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