The Italian Council of Ministers approved a draft of the Budget Law for 2023 (the Draft).The Draft provides for several tax measures that may be of interest to multinational enterprises (MNEs) with Italian operations, including: (i) Limited deduction of costs incurred with black-listed jurisdictions; (ii) Transition tax on undistributed profits from low-tax subsidiaries; (iii) Nonresident’s capital gains on indirect transfers of Italian real estate; (iv) Step-up of Italian participations held by nonresident entities; (v) Exemption for investment management activities; and (vi) a One-off energy windfall tax. These measures are summarized in this Alert.Executive summaryOn 21 November 2022, the Italian Council...