NEWSLETTER NO. 24 - 2020 / "RELAUNCH DECREE"

  • Regional tax on productive activities (IRAP)

    Enterprises and self-employed people that in the tax period before 20 May 2020 generated proceeds or income not exceeding EUR 250 million are not required to pay:

    • the final IRAP (regional tax on productive activities) balance for tax period as of 31 December 2019, notwithstanding the duty to provide for prepayments owed for such tax period;
    • the first IRAP prepayment for the tax period subsequent to 31 December 2019 (the amount of such payment is excluded anyway from the calculation of the final tax balance for the same tax period).

    Banks and financial institutions, insurance companies and public sector bodies are excluded from this tax benefit.

  • GRANTS

    Enterprises, self-employed people and holders of agricultural income pursuant to section 32 of the Italian Tax Code (TUIR) in possession of the following requirements:

    • hold a VAT number,
    • still active on the date of application filing,
    • generating proceeds or income not exceeding EUR 5 million in the tax period before the 20 May 2020,

    are recognized a grant.

    • Banks and financial institutions,
    • public sector bodies,
    • all those entitled to receive the EUR 600 aid under section 27 and section 38 of the Italian law-decree 18/2020,
    • self-employed people registered with a private pension scheme

    are excluded from the benefit.

    Grants are recognized provided that the turnover and/or the income in April 2020 is lower than two thirds of the turnover and/or the income generated in April 2019. In any case, grants are recognized to all those who started their businesses as of 1 January 2019.

    The grant equals the difference between the amount of turnover and income in April 2020 and the amount of turnover and income in April 2019, multiplied by the following ratios:

    • 20 percent for those with proceeds or income not exceeding EUR 400,000,
    • 15 percent for those with proceeds or income  exceeding EUR 400,000 and up to EUR 1 million,
    • 10 percent for those with proceeds or income exceeding EUR 1 million and up to EUR 5 million in the tax period before 20 May 2020.

    Individuals are recognized a grant of no less than EUR 1,000, whereas all other entities are recognized a grant of EUR 2,000.

    The grant does not add to the taxable income for income tax (IRES/IRPEF) and for IRAP purposes.

    The grant must be applied for electronically only. The application must be submitted to the Italian tax authority no later than 60 days from the date on which the electronic procedure for the filing of applications is made available, as specified in the decision released by the Director of the Italian tax authority.

    If a grant is improperly appropriated, fully or in part, section 316-ter of the Italian Criminal Code relating to misappropriation of public funds applies <<through the use or the filing of returns or false documents confirming untrue circumstances or through omission of required information>>, with a penalty of imprisonment from six months to three years (if the sum improperly appropriated is equal or below EUR 3,999.96 an administrative penalty varying from EUR 5,164 to EUR 25,822 only applies, and in no case shall exceed three times the benefit obtained).

  • CAPITALISATION OF COMPANIES

    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.

  • TAX CREDIT FOR NON-RESIDENTIAL PROPERTY LEASE RENTALS

    All enterprises and self-employed people:

    • with proceeds of no more than EUR 5 million in the tax period before 20 May 2020 (no proceed requirements apply to hotels or farm holiday facilities)
    • that suffered a loss of turnover/income in March 2020, April 2020 and May 2020 of at least 50 percent compared to the same period in 2019 (for seasonal tourism and accommodation businesses only, reference is made to April, May and June).

    are entitled to a tax credit of 60 percent of the rental payments, lease rentals or concession fees paid in 2020 for March 2020, April 2020 and May 2020 for non-residential properties used to carry out their business paid in 2020.

    For agreements on the provision of complex services or on business leases, including at least one non-residential property used to carry out the business activity, a 30 percent the tax credit on the relevant payments is recognized.

    Even non-commercial entities, including voluntary sector and civilly recognized religious entities, are eligible for the tax credit on rental payments, lease rentals or concession fees for non-residential properties used to carry out their institutional activities.

    The tax credit may be:

    • claimed in the annual tax return for the tax period in which the expenses are incurred,
    • set-off in the F24 payment form upon payments made, without any limits of amount,
    • transferred to the lessor or the landlord against a discount of the same amount on the lease/rental/fee payment to be made. The tax credit may be claimed  by the lessor or the landlord in the tax return for the tax period in which the tax credit was transferred and equals the discount granted on the lease/rental/fee payment (lessors and landlords acting as entrepreneurs, artists or professionals, may also  claim the tax credit by offsetting it in the F24 payment form for an amount equal to the discount granted on the lease/rental/fee payments, starting from the month following the transfer of the tax credit);
    • transferred to other entities, including credit institutions and financial intermediaries, that may further transfer the credit.

    The tax credit does not add to the taxable income for IRES/IRPEF and IRAP purposes.

    The tax credit cannot be cumulated with the tax credit for shops and stores under the Italian law decree 18/2020 in relation to the same expenses.

    The implementation rules of this tax benefit will be disclosed in a decision by the Director of the Italian tax authority.

  • INNOVATIVE START-UP BUSINESSES

    A 50 percent deduction from income tax (IRPEF) is granted as of 20 May 2020 for investments made in the corporate equity of one or more innovative start-ups, made either directly or through UCITs investing mainly in innovative start-up businesses. This income tax deduction forms an alternative to the tax deduction under section 29 of the Italian law-decree 179/2012..

    A maximum investment of no more than EUR 100,000 will be deductible in each year. Such investment must be held for at least three years, otherwise the tax benefit will be lost.

    A similar tax benefit is granted for investments made in the corporate capital of innovative SMEs.

    The implementation rules of the tax benefit will be disclosed in a decree to be released by the Italian ministry of economic development (MISE).

  • WHITE CERTIFICATES

    The deadline for the assessment of the fulfilment of the duties under section 4 (4c) and section 4 (5c) of the decree issued by the Italian ministry of economic development (MISE) is postponed to 30 November 2020.

    As a consequence, the duty to issue white certificates for 2019 not relating to the execution of energy efficiency projects shall start on 15 November 2020.

  • ADDITIONAL DEPRECIATION (SUPER DEPRECIATION)

    The deadline for the delivery of new capital goods in order to benefit from addition depreciation (super depreciation) set forth on 30 June 2020 is postponed to 31 December 2020.

  • EMPLOYEE ALLOWANCE

    Those who benefited from the EUR 600 allowance under section 27, section 28 and section 29 of the Italian law-decree 18/2020 for March are recognized the same EUR 600 allowance for April 2020.

    The beneficiaries of the allowance under section 30 of the Italian law-decree 18/2020 are recognized the same EUR 500 allowance for April.

    The same allowance is recognized to:

    • seasonal employees of the tourism industry and of thermal cure establishments
    • temporary employees in the tourism industry,

    that involuntarily terminated their employment relationships between 1 January 2019 and 17 March 2020, provided that they are not recipients of pensions, they do not have an employment contract or benefit from unemployment allowances (NASPI).

    Self-employed professionals (holding an active VAT number on 20 May 2020) in possession of the following requirements:

    • registered with the separate INPS social security scheme (“gestione separate”), not receiving a pension and not registered with other mandatory social security schemes;
    • that suffered a loss of income of at least 33 percent in the second half-year 2020 compared to the same 2019 period,

    are recognized an allowance of EUR 1,000 for May 2020.

    Workers in a continued and coordinated contract  ("collaborazioni coordinate e continuative") in possession of the following requirements:

    • registered with the separate INPS social security scheme (“gestione separate”), not receiving a pension and not registered with other mandatory social security schemes,
    • that on 20 May 2020 have a terminated employment relationship,

    are recognized an allowance of EUR 1,000 for May 2020.

    Finally, a EUR 600 allowance for April and May respectively is granted to employees and self-employed people who terminated, reduced or suspended their activity or employment relationship due to the health emergency and are in possession of the requirements under section 84 of the Relaunch Decree.

  • ENERGY EFFICIENCY INCENTIVES

    The energy efficiency measures under section 14 of the Italian law-decree 63/2013 are eligible for a 110 percent tax deduction of proven expenses borne by taxpayers and incurred from 1 July 2019 until 31 December 2021 -  to be divided into 5 annual instalments of equal amount - in the following cases:

    1. thermal insulation of horizontal and vertical opaque surfaces the buildings' envelop with an incidence of more than 25 percent of the buildings' gross total dispersing surface. The tax deduction is calculated on a total amount of expenses not exceeding EUR 60,000, multiplied by the number of real estate units in the building. The insulation material used must be compliant with the minimal environmental requirements set forth in the decree disclosed on 11 October 2017 by the Italian Ministry of the Environment.
    2. measures on the buildings' common parts in order to replace existing heating plants with centralized condensing systems used for heating, cooling and the supply of warm water, with an energy efficiency class of at least A, as set forth under regulation (EU) 811/2013, by heat pump driven systems, including hybrid or geothermal plants, even in combination with the installation of photovoltaic plants and the relevant energy storage or micro-cogeneration systems. The tax deduction is calculated on a total amount of expenses of no more than  EUR 30,000, multiplied by the number of real estate units in the building, and is recognised even for expenses relating to the disposal and the decontamination of the replaced plant;
    3. measures on single family houses in order to replace  existing heating plans with heat pump driven systems used for heating, cooling and warm water supply, including hybrid or geothermal plants, even in combination with the installation of photovoltaic plants and the relevant energy storage or micro-cogeneration systems. The above deduction is calculated on a total amount of expenses of no more than EUR 30,000 and is recognized even for expenses relating to the disposal and the decontamination of the replaced plant.

    The 110 percent tax deduction applies also to all other energy efficiency measures under section 14 of the Italian law decree 63/2013, within the expense ceilings set forth therein, provided that they are executed jointly with at least one of the above measures.

     In order to be eligible for tax deduction, the measures must be compliant with the minimum requirements set forth under section 14 (3-ter) of the Italian law-decree 63/2013 and they must, as a whole, ensure that the building's energy efficiency is improved by at least two energy classes, or if impossible, that the highest possible energy efficiency class is achieved. This must be proven by an energy efficiency certificate (A.P.E.) to be issued by an authorized technician as a sworn statement.

    For measures on buildings located in the earthquake zones under section 16 (1-bis - 1-septies) of the Italian law-decree 63/2013, the recognized tax deduction rate is increased to 110 percent for expenses incurred from 1 July 2020 until 31 December 2021. If the corresponding tax credit is transferred to an insurance company and in concomitance an insurance policy covering the risk of natural disasters is subscribed, the tax deduction under section 15 (f-bis) of the Italian Tax Code (TUIR) is granted at 90 percent. Buildings located in the earthquake zone 4, as specified in the ordinance no. 3274/2003 released by the Prime Minister, are excluded thereof.

    For the installation on buildings of photovoltaic solar plants connected to the electrical grid - under section 1 (1a), section 1 (1b), section 1 (1c) and section 1 (1d) of the Italian DPR 412/1993 - the tax deduction pursuant to section 16-bis of the Italian Tax Code (TUIR) is recognized for expenses incurred from 1 July 2020 until 31 December 2021 at 110 percent up to a total amount of the same expenses not exceeding EUR 48,000 and anyway within the expense ceiling of EUR 2,400 for each kW of nominal power of the photovoltaic solar plant (to be divided into 5 annual instalments of equal amount), provided that the plants are installed concomitantly with one of the above measures. In the event of restructuring, construction and urban transformation under section 3 (d), section 3 (e) and section 3 (f) of the Italian DPR 380/2001, the expense ceiling is reduced to EUR 1,600 for each kW of nominal power. The tax deduction is recognized even for the concomitant or subsequent installation of energy storage systems to be integrated in photovoltaic solar plants that benefited from the above tax deduction, at the same conditions, and within the same ceilings in terms of amount and total amount and, anyhow, up to the expense ceiling of EUR 1,000 for each kWh of the energy storage system's storage capacity. The tax deductions are subordinated to the transfer of the energy that is not used for self-consumption to GSE and cannot be cumulated with other public incentives or other forms of aid of any kind, as provided for under European, Italian and regional laws.

    The tax deduction for the installation of charging infrastructure for electric vehicles in buildings under section 16-ter of the Italian law-decree 63/2013 is recognized at 110 percent (to be divided into 5 annual instalments of equal amount by the beneficiaries), provided that the installation is executed in concomitance with one of the energy efficiency measure.

     The tax deductions are recognized for measures taken by (i) owners of real estate units; (ii) individuals not acting as entrepreneurs, artists and professionals, on real estate units other than one-family houses and not used as main residence ("abitazione principale"), (iii) social housing institutes (istituti autonomi case popolari (IACP), (iv) non-ownership housing cooperatives (cooperative di abitazione a proprietà indivisa) for measures on properties owned by them and assigned for use to its members.

    Beneficiaries may opt to transfer or to benefit from a discount amounting to the tax deduction amount. To this end taxpayers request a tax compliance certification for on the data contained in the documents that confirm the fulfilment of the requirements entitling to tax deduction.

    The implementation rules for these new tax deductions shall be disclosed in a decision released by the Director of the Italian tax authority.

  • CONVERSION OF TAX DEDUCTIONS INTO TRANSFERABLE TAX CREDITS

    Those who incur the following expenses in 2020 and in 2021:

    • regeneration works on existing building stock under section 16-bis (a) and section 16-bis (b) of the Italian Tax Code (TUIR);
    • energy efficiency measures under section 14 of the Italian tax-decree 63/2013;
    • adoption of anti-earthquake measures under section 16 (1-bis - 1-septies) of the Italian law-decree 63/2013;
    • recovery or restoration of existing building facades, including the cleaning or external painting only;
    • installation of photovoltaic plants under section 16-bis (h) of the Italian Tax Code (TUIR);
    • installation of charging stations for electric vehicles;

    may opt for the following as an alternative to the direct claim of the tax deduction:

    • for a discount on the price up to a maximum amount corresponding to the price owed, which is advanced by the supplier that carries out the measures and recovered by the same as a tax credit; such tax credit may subsequently be transferred to other entities;
    • for conversion of the corresponding amount into a tax credit, which may subsequently be transferred to other entities.

    The tax credit may also be claimed as a set-off and benefitted from by dividing it into the same annual instalments as if it is claimed as a tax deduction. The share of tax credit not used in the year can be neither claimed in subsequent years nor be refunded.

  • TRANSFER OF TAX CREDIT

    The beneficiaries may transfer the following tax credits to other entities until 31 December 2021:

    • tax credit for shops and stores under section 65 of the Italian law-decree 18/2020;
    • tax credit for rental leases of non-residential properties and of company leases under section 28 of the Relaunch Decree;
    • tax credit for workplace disinfection and the purchase of individual protection devices under section 125 of the Relaunch Decree;
    • tax credit for workplace adjustment under section 120 of the Relaunch Decree.

    The tax credit may be also be claimed as a set-off and is used by the transferee according to the same rules as if it would have been claimed by the transferor. The share of tax credit not used in the year can be neither claimed in subsequent years nor be refunded.

    The implementation rules for these new tax deductions shall be disclosed in a decision released by the Director of Italian tax authority.

  • TAX CREDIT FOR WORKPLACE ADJUSTEMENT

    Enterprises, self-employed people that carry out their business in places opened for the public, foundations and other private entities, including voluntary sector entities, are recognized a tax credit of 60 percent of the expenses incurred in 2020 up to no more than EUR 80,000 for measures required to comply with the sanitary requirements and aimed to contain the spread of the COVID.19 virus, including construction measures required for changing rooms and canteens, for medical spaces, entrances and common spaces, for the purchase of safety furniture, for the development or purchase of instruments and technology required to carry out the business activity and for the purchase of equipment used to measure the employees' and users' body temperature.

    The tax credit may be cumulated with other incentives and may be used in 2021 only to set-off, without any limits of amount.

  • TAX CREDIT FOR DISINFECTIONS

    Enterprises, self-employed people, non-commercial entities, including voluntary sector entities and civilly recognized religious institutions, are recognized a tax credit of 60 percent of the expenses incurred in 2020 for the disinfection of places and devices used as well as for the purchase of individual protection devices and other devices suitable to ensure the employees' and users' health.

    A maximum tax credit of no more than EUR 60,000 is granted to each beneficiary.

    The following expenses incurred are eligible for the tax credit:

    • the disinfection of the places in which the working and the institutional activities are exercised and of instruments used for such activities;
    • the purchase of individual protection devices, gloves, protective face guards and eyeglasses, protective suits and footwear, that are compliant with the basic safety requirements under European legal provisions;
    • the purchase of detergents and disinfectants;
    • the purchase of other safety devices, such as thermometers, thermal scanners, sanitising and cleaning rags and trays that are compliant with the basic safety requirements under European law, including any contingent installation expenses;
    • the purchase of devices suitable to ensure interpersonal safety distances such as protection barriers and panels, including any contingent installation expenses.

    The tax credit may be claimed in the income tax return for the tax period in which the expenses are incurred or offset, without any limits of amount. The tax credit does not add to the taxable income for IRES/IRPEF and IRAP purposes.

    The implementation criteria and rules for the enjoyment of the tax credit up to the total expense ceiling of EUR 200 million in 2020 are set forth by a decision by the Director of Italian tax authority.

  • SAVING PLANS

    For long-term savings plans (PIR) that for at least two thirds of the calendar year of the plan's duration term invest at least 70 percent of the total value, either directly or indirectly, in:

    • financial instruments, even if not traded on regulated markets or in multilateral trade systems, issued or subscribed with companies resident in Italy, in the EU or in the EEA having a permanent establishment in Italy other than those included in the FTSE MIB index and the FTSE Mid Cap index on the Italian Stock Exchange or in equivalent indexes of other regulated markets,
    • loans granted to the above mentioned enterprises,
    • receivables of the same enterprises,

    the investment limit is increased to 20 percent.

    Investors may allocate sums or values of no more than EUR 150,000 per year and no more than EUR 1.5 million in total to long term savings plans under section 13-bis (2bis) of the Italian law-decree 124/2019.

  • RIDETERMINATION OF THE PURCHASE COST OF LAND AND EQUITY INVESTMENTS

    The purchase cost of land and equity investments in unlisted companies held as of 1 July 2020 may be re-determined through payment of a substitute tax at 11 percent.

    The substitute tax may be settled in no more than three annual instalments of equal amount, starting on 30 September 2020; interest on all subsequent instalments (save for the first one) is due at 3 percent. A value assessment report must be drawn up and sworn by 30 September 2020.

  • ELECTRONIC FILING FEES

    The moratorium on penalties is extended to 1 January 2021 for all those that, despite being obliged to electronically store and submit daily receipts since 1 January 2020, do not equip themselves with an electronic acquisition data device (due to end on 30 June 2020).

  • PONEMENT OF TAX PAYMENTS

    The tax payments already suspended under the Cure Italy and the Liquidity decrees relating to:

    • withholding taxes on income from employment and similar income, VAT, social security contributions and mandatory insurance premiums for March 2020, April 2020 and May 2020,
    • the sums corresponding to taxes not withheld on self-employed income,

    must be made

    • no later than by 16 September 2020, or
    • in up to a maximum of 4 monthly instalments of equal amount, with the first instalment being settled by 16 September 2020.

     

    There is even a postponement of payments due between 9 March 2020 and 31 May 2020 of the sums owed relating to:

    • notices of tax assessment settlement ("atti di accertamento con adesione");
    • conciliation;
    • mediation pursuant to section 17-bis of the Italian legislative decree 546/1992;
    • payment notices after income attribution;
    • payment notices for omitted registration of rental lease or other agreements;
    • notices of collection of tax credits improperly used;
    • payment notices issued upon omitted, insufficient or late payment of registration fees, of inheritance and gift taxes, of substitute taxes on loans, of insurance taxes;
    • instalments due under favourable settlement schemes pursuant to section 1, section 2, section 6 and section 7 of the Italian law-decree 119/2018.
  • PENALTY-FREE TAX NOTICES

    The payment of sums owed under penalty-free tax notices due between 8 March 2020 and 19 May 2020 are deemed in due time, if made by 16 September 2020.

     Payments due between 20 May 2020 and 31 May 2020 may be settled by 16 September 2020, without any further penalties and interest being applied.

     The above payments may also be made in 4 monthly instalments of equal amount, by day 16 of each month, starting in September 2020.

  • TAX OFFSETTING AND REFUNDS

    In 2020 the tax credit offsetting threshold is increased to EUR 1 million.

    In 2020 no offsetting between the tax credit and any contingent tax liabilities registered with the tax roll is applied when tax reimbursements are granted.

  • SUMS REIMBURSED TO THE PROVIDING INSTITUTION

    Normally, sums reimbursed to the providing institutions are charges deductible from income, if they have been subjected to tax in previous years.

    As of 1 January 2020 these sums, if subject to withholding tax, are reimbursed to the providing institutions, net of taxes withheld and do not form charges deductible from income.

    In this case the withholding tax agent is entitled to a tax credit equal to 30 percent of the sums received and may claim them through offsetting, without any limits of amount.

  • VACATION TAX CREDIT

    In 2020 all households with an economic status index (ISEE - indicatore della situazione economica equivalente) not exceeding EUR 40,000 are recognized a tax credit that can be used from 1 July 2020 until 31 December 2020 for the payment of services offered by tourism and accommodation facilities in Italy as well as by farm holiday and bed-and-breakfast facilities in possession of the titles required under Italian and regional laws to carry out tourism and accommodation businesses.

     The tax credit amounts to EUR 300 if households comprise two members and to EUR 150 if they comprise one member only.

    The tax credit is recognized at the following conditions:

    • the expenses must be incurred in one instalment only for services rendered by a single tourism accommodation facility, by a single farm holiday or a single bed-and-breakfast facility only;
    • the total price must be documented by e-invoice or by a commercial document specifying the tax code of the beneficiary of the tax credit;
    • the service must be paid without the intervention or intermediation of electronic platform or portal operators other than travel agents and tour operators.

    The tax credit can be claimed at 80 percent only as a discount on the price due for the services provided by the supplier, if agreed upon with the supplier, and at 20 percent as a tax deduction in the beneficiary’s income tax return.

    The discount is reimbursed to the service supplier as a tax credit to be claimed through offsetting only, without any limits of amount, and may be transferred to third parties.

    In the absence of the requirements entitling to this tax credit, the service supplier and the purchaser are liable limited to the amount of the tax credit claimed that exceeds the discount granted.

  • IMU (Municipal Property Tax) EXEMPTION FOR THE TOURISM INDUSTRY

    The first instalment of the Municipal Property Tax (IMU) relating to

    • real estate properties used as sea, lake and river bath resorts as well as thermal cure establishments;  
    • category D/2 real estate properties and farm holiday properties, holiday resorts, youth hostels, mountain hats, summer sea and mountain camps, rooms for short-term lettings, vacation homes and houses, bed-and-breakfast facilities, holiday residences and camping sites, provided that the respective owners also operate the businesses carried out therein.
  • EXEMPTION FROM THE TAX FOR THE OCCUPA-TION OF PUBLIC AREAS AND SPACES (TOSAP)

    Hospitality businesses, owners of government concessions and authorizations for the use of public areas are exempted from the payment of the tax for the occupation of public areas and spaces (TOSAP) from 1 May 2020 until 31 October 2020.

  • TAX CREDIT FOR ADVERTISING

    In 2020 a tax credit for advertising at 50 percent of the investments made within the expense ceiling of EUR 60 million is granted under section 57-bis of the Italian law-decree 50/2017; more precisely, the expense ceiling is limited to EUR 40 million for advertising investments in daily newspapers and monthly periodicals, including  electronic daily newspapers and monthly periodicals, and to EUR 20 million for advertising investments made with local and national, analogical or digital, TV and radio broadcasters.

    The tax benefit is recognized to broadcasters not controlled by the State that suffered a loss in turnover of more than 33 percent between 1 March 2020 and 31 May 2020 compared to the same 2019 period, limited to Italian TV and radio broadcasters only,

    In 2020 the electronic statement is filed between 1 September 2020 and 30 September 2020. Electronic statements submitted between 1 March 2020 and 31 March 2020 will continue to valid.

     

    Your sincerely,

    HAGER & PARTNERS

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