{"id":3312,"date":"2026-09-23T15:49:55","date_gmt":"2026-09-23T13:49:55","guid":{"rendered":"https:\/\/www.sgtax.it\/transparent-foreign-trusts-and-the-determination-of-income-attributable-to-italian-resident-beneficiaries\/"},"modified":"2026-09-23T15:55:11","modified_gmt":"2026-09-23T13:55:11","slug":"transparent-foreign-trusts-determination-income-attributable-italian-resident-beneficiaries","status":"publish","type":"post","link":"https:\/\/www.sgtax.it\/en\/transparent-foreign-trusts-determination-income-attributable-italian-resident-beneficiaries\/","title":{"rendered":"Transparent Foreign Trusts and the Determination of Income Attributable to Italian-Resident Beneficiaries"},"content":{"rendered":"

Income attributed to an Italian-resident beneficiary of a transparent foreign trust must be determined in accordance with the tax rules of the jurisdiction in which the trust is resident or established<\/strong>.<\/p>\n

This was clarified by the Italian Tax Authority<\/strong> in Ruling No. 165\/2026<\/strong>, concerning a trust established in the United States that became transparent following the settlor\u2019s death.<\/p>\n

In the case under consideration, the trust deed provided that, upon the death of the surviving settlor, the trust assets would be distributed in equal shares among her three children, without the trustee having any discretion in this respect. Each child therefore qualified as an identified beneficiary, being legally entitled to claim their respective share of the trust income.<\/p>\n

Pursuant to Article 73(2) of the Italian Income Tax Code (TUIR)<\/strong>, the trust\u2019s income must therefore be attributed to the Italian-resident beneficiary:<\/p>\n