Wednesday, April 1, 2015

Taxation Agreement between the Holy See and the Government of Italy

At 9:45am today, at the Secretariat of State, the Taxation Agreement between the Holy See and the Government of the Republic of Italy was signed.


On behalf of the Holy See, the agreement was signed by His Excellency, Archbishop Paul Richard Gallagher, Secretary for Relations with States; and for the Republic of Italy, His Excellency, Mister Pier CArlo Padoan, Minister for the Economy and for Finance, who were acting with full authority.

Also present to witness this solemn act were:

  • on behalf of the Holy See, Monsignor Peter B. Wells, Assessor for General Affairs; Monsignor Lucio Bonora, Official from the Section for General Affairs; Monsignor Carlo Alberto Capella, Councillor at the Nunciature in service to the Section for Relations with States; Reverend Father Piero Gallo, Official of the Section for Relations with States; Reverend Father Don Carlos Fernando Díaz Paniagua, Official of the Section for Relations with States; Monsignor Luciano Alimandi, Official of the Section for Relations with States; and Monsignor Walter Erbi, Counscillor at the Apostolic Nunciature in Italy; and
  • on behalf of the Republic of Italy, Ambassador Daniele Mancini, Ambassador of Italy; Councillor Roberto Garofoli, Chief of Cabinet; Professor Fabrizia Lapecorella, Head of the Department of Finance; Minister Michele Quaroni, Diplomatic Advisor to the Minister; Councillor Francesca Quadri, Legislative Office Coordinator for Finance; Doctor Marco Iuvinale, Director for International Relations at the Department of Finance; and First Secretary Raffaella Campanati from the Embassy of Italy.
The reforms introduced in 2010 with the creation of institutions at the Holy See with specific expertise in economic and financial matters, now allow for full administrative cooperation, including for tax purposes.  As part of the special relevance of bilateral relations, Italy is the first country with which the Holy See has signed an agreement which applies to the exchange of information.


In accordance with the ongoing proceedings aimed at the establishment of global transparency in the field of financial relations, the Convention incorporates the most up-to-date international standards in matters of information sharing (article 26 of the OCSE Model) to oversee cooperation between the competent authorities of the two concerned parties.  The exchange of information will include the tax years from January 1, 2009 onward.

As of the date it comes into effect, the Convention will permit full compliance with simplified procedures for tax obligations relating to fiscal assets held by financial institutions conducting activities with the Holy See with some natural and legal persons resident for tax purposes in Italy.  These subjects will also have access to a process of regularization for these same activities, with the same effects as are provided by law number 186/2014.

The current Convention also implements the provisions of the Lateran Treaty concerning an exemption from taxes for property belonging to the Holy See as are indicated in the Treaty.

Finally, the Convention is included in the Exchange of Notes from July 2007 between the Minister of Foreign Affairs and the Secretariat of State, which provide for notification through diplomatic channels relating to associated acts and entities of the Holy See.

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