Federico Vincenti and Carola Valente Della Rovere of Valente Associati GEB Partners/Crowe examine a recent decision concerning the transfer pricing treatment of non-remunerated intra-group guarantees, focusing on economic substance, legal form, and group-level business justifications.

With Order No. 13136 of May 7 2026, the Italian Supreme Court has provided important guidance on the application of transfer pricing rules to intra-group financial transactions, specifically in the context of guarantees granted without explicit remuneration.

The decision is particularly relevant for multinational groups, as it addresses a recurring issue in practice: whether the absence of a fee in intra-group arrangements – such as guarantees or financial support – automatically triggers a transfer pricing adjustment under Article 110(7) of the Italian Income Tax Code.