On 23 July 2016, Italian Law No. 122 of 7 July 2016 entered into force. The law includes a number of amendments to Italian tax law concerning compliance with EU law, including implementation of the hybrid mismatch and anti-abuse amendments to the EU Parent-Subsidiary Directive. The Law provides that with effect from 1 January 2016, the 95% participation exemption for payments from other EU Member States will not apply if the payments are deductible for the paying entity (hybrid mismatch). Reg…