In the 2023 Redditi SC Model, intended for joint-stock companies, the FC Section is used to declare the income of non-resident controlled entities (also known as Controlled Foreign Companies or CFC). This section needs to be filled by:
- Companies controlling non-resident entities;
- Companies and bodies, including trusts, not resident in Italy, with regard to their activities established in Italy.
CFCs are companies or entities not resident in Italy that are controlled, directly or indirectly, by a company or entity resident in Italy. This control can be represented by owning more than 50% of the profits.
The FC Section is divided into six parts:
- Identification data of the CFC;
- Calculation of the CFC's income;
- Declaration of the CFC's uncompensated business losses;
- Attribution of income and taxes paid abroad to resident subjects;
- List of non-deductible passive interests;
- Declarations on the compliance or correctness of the balance sheet values.
In the first part, the identification data of the non-resident controlled subject and information relating to the control exercised by the resident subject should be reported.
In the income calculation part of the CFC, certain rules must be followed, including the exchange conversion on the closing day of the CFC's financial year or management period.
In the part dedicated to uncompensated losses, the losses that can be used in a limited measure and the tax losses that can be used in full should be indicated.
In the part for the attribution of income and taxes, the income obtained by the CFC that is to be attributed to the resident subject exercising control is indicated.
In the part on non-deductible passive interests, the deductible amount of passive interests is calculated.
Finally, the last part is about declarations on the compliance or correctness of the balance sheet values.
Remember, the correct completion of the FC Section is important to comply with tax regulations and ensure that taxes are calculated correctly.