VAT Treatment of Profit-Sharing Agreements in Italy

• The text discusses the legal framework of a “cointeressenza” contract, specifically the “propria” type.
• This contract involves two parties sharing profits and losses without any capital contribution.
• The contract is characterized by uncertainty and a reciprocal obligation to share potential profits or losses.
• The contract is considered “parassicurative” in nature, meaning it involves a reciprocal obligation to act, with capital only being employed in the event of a loss.
• The contract is not based on a predetermined capital contribution, but rather on the uncertain outcome of the business venture.
• The text highlights the legal framework and characteristics of the “cointeressenza propria” contract, emphasizing its unique features and legal implications.

Source: agenziaentrate.gov.it

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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