Information Regarding Italian Financial Transaction Tax on Derivatives
This document is designed to provide an overview of how the Italian Financial Transaction Tax (I-FTT) will be handled by Interactive Brokers for Italian derivatives.
Effective September 1, 2013, the tax will be implemented on the purchase and sale of Italian derivatives.
Tax Rate
The tax rate is dependent on the type of financial instrument traded, whether the instrument was traded OTC or on a regulated exchange or MTF and on the value of the contract. The tax is applied per contract.
Scope
The I-FTT will be applied to transactions on derivatives whose underlying assets are mainly I-FTT taxable shares or whole value depends mainly on I-FTT taxable shares. It will also be applied on any other financial instrument which allows the purchase or share of I-FTT taxable shares or involving a cash settlement determined with reference to I-FTT taxable shares.
Calculation Method
The I-FTT will be applied to both the purchaser and the seller of the derivative contract. As such, there is no benefit of netting as there is when trading stocks.
The rates as set for 2013 when trading on a regulated exchange or MTF are outlined below. Note that a transaction occurring OTC will be charged 5 times the rates displayed below. The values displayed below are in EUR.
| Instrument |
Value < 2,500 |
2,500 to 4,999 | 5,000 to 9,999 | 10,000 to 49,999 | 50,000 to 99,999 | 100,000 to 499,999 | 500,000 to 999,999 | 1,000,000 + |
| Futures, certificates, covered warrants, options on yields, measures or indices related to shares | 0.00375 | 0.0075 | 0.015 | 0.075 | 0.15 | 0.75 | 1.5 | 3 |
| Futures, warrants, certificates, covered warrants and options on shares | 0.025 | 0.05 | 0.1 | 0.5 | 1 | 5 | 10 | 20 |
| All other products not listed above | 0.05 | 0.1 | 0.2 | 1 | 2 | 10 | 20 | 40 |
The information above is being provided on a best efforts basis only and is subject to change.