TAX CREDIT FOR TRANSFERORS
All those making cash contributions for capital increases resolved upon as of 20 May 2020 and until 31 December 2020, entirely paid-up, are recognized a 20 percent tax credit calculated on a maximum amount of EUR 2 million.
The equity obtained in exchange of the cash contribution must be held until 31 December 2023, in order not to lose the tax benefit.
Companies that directly or indirectly control the transferee, that are subject to common control or that are associated to or controlled by the same are not eligible for tax credit.
Cash contributions must be made vis-à-vis capital companies, having their legal offices in Italy, other than financial institutions and insurance companies that:
- in 2019 generated proceeds pursuant to section 85 (a) and 85 (b) of the Italian Tax Code (TUIR) between EUR 5 million and EUR 50 million;
- in March 2020 and in April 2020, due to the COVID-19 emergency, suffered a loss of proceeds compared to the same period of the previous year of no less than 33 percent (reference is made to the group's consolidated proceeds, without taking into account intra-group proceeds).
At the same conditions even:
- investments in permanent establishment in Italy of EU-based or EEA-based companies;
- investments through stocks and shares held in UCITs based in Italy, in the EU or in the EEA that mainly (more than 50 percent) invest in the funded businesses’ corporate equity
are eligible for tax credit.
The tax credit may be claimed in the tax return for the tax period in which the investment was made and for subsequent periods until the tax credit is fully used and, as of the 10th day following the day on which the tax return is filed, even by offsetting it in the F24 payment form, without any limits of amount. The tax credit does not add to the taxable income for IRES and IRAP purposes.
The transferee is not allowed to distribute reserves before 31 December 2023, otherwise the tax benefit is lost. Furthermore, the transferee must issue a confirmation of the eligible measure to the transferor.
TAX CREDIT FOR TRANSFEREES
The above mentioned transferees (capital companies) in possession of the following requirements:
- not to be included on 31 December 2019 in the category of firms in difficulty pursuant to Commission regulation 651/2014, Commission regulation 702/2014 and Commission regulation 1388/2014,
- to have duly fulfilled all duties relating to the payment of social security contributions and taxes,
- to be compliant with all provisions on building and urban planning law, employment law and on the prevention of accidents in the workplace as well as on environmental protection currently in force,
- not to be included amongst the enterprises that received and, subsequently, did not reimburse or deposit on a blocked account aids deemed illegal or non-compliant by the European Commission,
- not to be subject to one of the impediments under section 67 of the Italian law decree 159/2011,
- not to have directors, shareholders and beneficial owners that have been finally sentenced to the ancillary penalty of being banned from holding public offices due to tax evasion offences,
are eligible for a tax credit of 50 percent of the losses exceeding 10 percent of net equity including the losses themselves, up to 30 percent of the capital increases received, upon approval of the 2020 financial statements.
The tax credit may be set-off in the F24 payment form as of the 10th day following the date on which the tax return is filed, without any limits of amount. The tax credit does not add to taxable income for IRES and IRAP purposes.
If the company distributes reserves before 2024, the tax benefit will be lost.
The aid measures outlined above:
- may be cumulated with each other and with possible other aid measures received, and
- shall not exceed EUR 800,000 in total for each company or EUR 120,000 for companies operating in the fishery and aquaculture industry, and EUR 100,000 for companies operating in the production of basic agricultural products.
SME EQUITY FUND
An "SME Equity Fund" is established with the aim to subscribe by 31 December 2020 newly issued bonds and debt notes issued by:
- companies in possession of the above mentioned requirements, but with proceeds between EUR 10 million and EUR 50 million;
- with less than 250 employees,
for no more than either three times the amount of the above mentioned capital increase or 12.5 percent of the amount of proceeds, whichever amount is lower.
All aid measures outlined above are subject to authorization by the EU.