How taxation on share repurchases is evolving and what it means for Italian companies
France, the US and beyond: different models
France has introduced the toughest buyback tax in Europe: 8% on capital reductions by large firms. The United States, by contrast, since 2023 applies a 1% levy on the market value of repurchases, with exemptions for employee plans and corporate reorganizations. The aim is to curb excessive buybacks and channel profits into investment and wages.
Other countries vary. The Netherlands withdrew a proposed 15% tax, fearing competitiveness issues. Spain applies a 0.2% financial transaction tax, but exempts buybacks for capital reduction or employee schemes. Ireland levies a 1% stamp duty, while Germany relies on general tax rules without ad hoc measures.
Italy: the Tobin tax and its exceptions
In Italy, buybacks fall under the Tobin tax, with rates of 0.1–0.2%, but capital cancellations are exempt. This uneven framework fuels debate on whether to reform and introduce clearer rules.
Unimpresa: balance over ideology
According to Unimpresa’s Vice President Giuseppe Spadafora:
“We must not demonize buybacks, but assess whether they drain resources from growth. Italy should avoid duplications with the Tobin tax and not punish already struggling companies. The priority is credit for SMEs and profits reinvested in jobs and innovation.”
Which way forward?
Unimpresa’s Research Center outlines three possible paths:
- the US model, a light, broad levy;
- the French model, targeted only at capital reductions;
- an extension of the Tobin tax, which risks double taxation.
Each option carries consequences for tax revenue and market competitiveness.