Tax consolidation: VAT surpluses subject to compliance stamp? The national consolidated tax return is a particular regime for determining the overall IRES income for all participating companies, represented by the algebraic sum of the individual taxable bases resulting from their respective tax returns. Therefore, companies that wish to adopt group consolidated taxation (articles 117-129 of the Consolidated Law on Income Tax) must exercise the specific option that lasts for three years and is irrevocable. Once this period has expired, the option is tacitly renewed for another three years unless it is revoked, according to the methods and terms provided for the communication of the option. The option can be exercised by each company only as a parent company or only as a subsidiary; its effectiveness is subject to the occurrence of the following conditions: identity of the financial year of each subsidiary with that of the controlling company or entity. Identity of the financial year means identity of the closing of the tax period; therefore, newly established companies can opt for the consolidation, if the necessary requirements are met, starting from the first financial year; joint exercise of the option by each subsidiary and the controlling entity or company; election of domicile by each ...