(1) The taxes referred to in this convention are the following
taxes asserted upon death:
(a) In the case of the United States of America: the Federal estate
(b) In the case of Italy: the estate and inheritance taxes.
(2) The present convention shall also apply to any other estate or
inheritance taxes of a substantially similar character imposed by either
contracting State subsequently to the date of signature of the present
(1) As used in this convention:
(a) The term "United States" means the United States of America,
and when used in a geographical sense includes only the States, the
Territories of Alaska and Hawaii, and the District of Columbia.
(b) The term " Italy" means the Italian Republic.
(c) The term "tax" means the Federal estate tax imposed by
United States, or the estate or inheritance tax imposed by Italy, as the
(d) The term "competent authority" means, in the case of the
States, the Commissioner of Internal Revenue as authorized by the
Secretary of the Treasury; and in the case of Italy, the Ministry of
Finance, General Directorship of Indirect Taxes on Business.
(2) In the application of the provisions of the present convention
by one of the contracting States, any term not otherwise defined shall,
unless the context otherwise requires, have the meaning which such term
has under its own laws.
(1) In the case of the death of a person who at the time of his
death was a national of or domiciled in one of the contracting States,
the situs of any of the following property or property rights shall, for
the purposes of the imposition of the tax and for the purposes of the
credit authorized by Article V, be determined exclusively in accordance
with the following rules:
(a) Real property shall be deemed to be situated at the place where
the land involved is located.
(b) Tangible personal property (other than such property for which
specific provision is hereinafter made) and bank or currency notes and
other forms of currency recognized as legal tender in the place of issue
shall be deemed to be situated at the place where such property or
currency is located at the time of death, or, if in transitu, at the
place of destination.
(c) Debts (including bonds, promissory notes, and bills of
exchange) shall be deemed to be situated at the place where the debtor
resides, or, if the debtor is a corporation, at the place in or under
the laws of which such corporation was created or organized.
(d) Shares or stock in a corporation (including shares or stock
held by a nominee where the beneficial ownership is evidenced by scrip
certificates or otherwise) shall be deemed to be situated at the place
in or under the laws of which such corporation was created or organized.
(e) Ships and aircraft and shares thereof shall be deemed to be
situated at the place of registration of the ship or aircraft.
(f) Goodwill as a trade, business or professional asset shall be
deemed to be situated at the place where the trade, business or
profession to which it pertains is carried on.
(g) Patents, trade-marks and designs shall be deemed to be situated
at the place where they are registered or used.
(h) Copyrights, franchises, rights to artistic and scientific works
and rights or licenses to use any copyrighted material, artistic and
scientific works, patents, trade-marks or designs shall be deemed to be
situated at the place where the rights arising therefrom are
(i) All property other than hereinbefore mentioned shall be deemed
to be situated in the State in which the deceased person was domiciled
at the time of his death.
(2) For the purposes of the present convention, the question
whether a decedent was at the time of his death a national of or
domiciled in one of the contracting States, or whether a debtor resided
therein, shall be determined in accordance with the law in force in that
The contracting State which imposes tax in the case of a decedent
who at the time of his death was not a national of such State and was
not domiciled in that State but was a national of or domiciled in the
(a) shall allow a specific exemption which would be allowable under
its law if the decedent had been domiciled in that State in an amount
not less than the proportion thereof which the value of the property
subjected to its tax bears to the value of the property which would have
been subjected to its tax if the decedent had been domiciled in that
(b) shall (except for the purposes of subparagraph (a) of this
Article and for the purpose of any other proportionate allowance
otherwise provided) take no account of property situated outside that
State in determining the rate and the amount of tax.
(1) The contracting State imposing tax in the case of a deceased
person, who, at the time of his death, was domiciled in such State or
was a national thereof, shall allow against its tax (computed without
credit for the tax of the other contracting State) a credit for the
amount of the tax imposed by the other contracting State with respect to
property situated in such other contracting State and included for tax
purposes by both States, but the amount of the credit shall not exceed
the portion of the tax imposed by the former State which is attributable
to such property.
(2) For the purpose of this Article, the amount of the tax of each
contracting State attributable to any designated property shall be
ascertained after taking into account any applicable diminution or
credit otherwise provided, except any credit authorized by this Article.
(3) Any refund of tax based on the provisions of this Article shall
be made without payment of interest on the amount so refunded.
The competent authorities of the contracting States shall exchange
such information (being information available under the respective
taxation laws of the contracting States) as is necessary for carrying
out the provisions of the present convention or for the prevention of
fraud or for the administration of statutory provisions against tax
avoidance in relation to the taxes which are the subject of the present
convention. Any information so exchanged shall be treated as secret and
shall not be disclosed to any persons other than those (including a
court) concerned with the assessment and collection of the taxes which
are the subject of the present convention or the determination of
appeals in relation thereto. No information shall be exchanged which
would disclose any trade secret or trade process.
Each of the contracting States may collect such taxes, which are
the subject of this convention, imposed by the other contracting State
(as though such taxes were taxes imposed by the former State), as will
ensure that the credit or any other benefit granted under the present
convention shall not be enjoyed by persons not entitled to such
Where the representative of the estate of a decedent or a
beneficiary of such estate shows proof that the action of the revenue
authorities of one of the contracting States has resulted or will result
in double taxation contrary to the provisions of the present convention,
such representative or beneficiary shall be entitled to present the
facts to the contracting State of which the decedent was a citizen at
time of death or of which the beneficiary is a citizen, or if the
decedent was not a citizen of either of the contracting States at the
time of death or if the beneficiary is not a citizen of either of the
contracting States, such facts may be presented to the contracting State
in which the decedent was domiciled or resident at time Of death or in
which the beneficiary is domiciled or resident. Should the claim be
upheld, the competent authority of the State to which the facts are so
presented will come to an agreement with the competent authority of the
other contracting State with a view to equitable avoidance of the double
taxation in question.
(1) The provisions of this convention shall not be construed to
deny or affect in any manner the right of diplomatic and consular
officers to other or additional exemptions now enjoyed or which may
hereafter be granted to such officers.
(2) The provisions of this convention shall not be construed so as
to increase the tax imposed by either contracting State.
(3) Should any difficulty or doubt arise as to the interpretation
or application of the present convention or its relationship to
conventions between one of the contracting States and any other State,
the competent authorities of the contracting States may settle the
question by mutual agreement.
The competent authorities of the two contracting States may
prescribe regulations necessary to carry into effect the present
convention within the respective States, and may communicate with each
other directly for the purpose of giving effect to the provisions of
(1) The present convention shall be ratified and the instruments of
ratification shall be exchanged at Rome as soon as possible.
(2) The present convention shall become effective on the day of the
exchange of instruments of ratification and shall be applicable to
estates or inheritances in the case of persons who die on or after that
date. It shall continue effective for a period of five years beginning
with that date and indefinitely after that period, but may be terminated
by either of the contracting States at the end of that five-year period
or at any time thereafter, provided that at least six months' prior
notice of termination has been given, the termination to become
effective on the first day of January following the expiration of the
DONE at Washington, in duplicate, in the English and Italian
languages, the two texts having equal authenticity, this 30th day of
FOR THE PRESIDENT OF THE
UNITED STATES OF AMERICA:
[SEAL] JOHN FOSTER DULLES
FOR THE PRESIDENT OF THE
[SEAL] GAETANO MARTINO