The CUPE (Certificazione degli utili e dei proventi equiparati) is a certificate relating to distributed profits and certain capital income treated as equivalent. It contains the relevant information for the tax treatment of dividends and income received, in particular the amount paid, the period in which the profits were generated and the relevant tax characteristics.
The obligation to issue the certificate generally lies with the company or the paying entity, where profits or equivalent income are distributed for which a CUPE is required.
Specific rules apply to profits generated from 2018 onwards. In the case of distributions to Italian-resident individuals receiving the income outside the scope of a business activity, the issuance of the CUPE is generally no longer required. Such dividends are normally subject to the final substitute tax of 26%.
However, a CUPE may still be required if the income is subject to a different tax regime. This applies in particular to distributions made to companies and other entities, non-resident recipients, as well as profits generated in tax periods prior to 2018.
The CUPE must generally be issued by 16 March of the year following the year of payment and must be made available to the recipient. There is no requirement to submit the individual certificates to the Italian Revenue Agency (Agenzia delle Entrate). The relevant information is instead reported by the paying entity through the 770 declaration.
The recipient must retain the CUPE and use the information contained therein, where relevant for tax purposes, when preparing their tax return. The certificate serves as supporting documentation for the correct tax reporting of received dividends and equivalent income.