NEWSLETTER NO. 35 - 2020

  • “RISTORI-BIS DECREE”

    Under the Italian Decree Law no. 149 as of 9 November 2020 (published in the Italian Official Gazette no. 279 as of 9 November 2020), the so-called "Ristori-bis Decree", further tax measures in support of businesses affected by the recent restrictions adopted to deal with the epidemiological emergency from COVID-19 are introduced.

     

    AMENDMENTS TO CONTRIBUTIONS TO LOSSES UNDER THE "RISTORI DECREE"

    Under the "Ristori Decree", businesses carrying out the activities referred to the ATECO codes (see annex 1 to our newsletter no. 34/2020) are recognized contributions to losses. Such annex 1 is replaced by the one attached hereto.

    Furthermore, businesses carrying out the activities referred to the ATECO codes:

    • 561030 ice-cream parlours and bakeries,
    • 561041 mobile ice-cream parlours and bakeries
    • 563000 coffee shops and similar businesses without kitchen,
    • 551000 hotels,

    with tax domicile or operational offices in the Italian high-risk areas facing serious or very serious challenges and set forth in the orders of the Italian Ministry of Health pursuant to sections 2 and 3 of Italian DPCM as of 3 November 2020 are recognised contributions to losses under the "Ristori Decree" increased by another 50% compared to the percentage set forth in annex 1.

     

    CONTRIBUTIONS TO LOSSES FOR SHOPPING CENTRES AND FOOD INDUSTRY

    Businesses with operational offices in shopping centres and industrial enterprises operating in the food and beverage industry affected by the recent restrictions provided for in DPCM as of 3 November 2020 are recognised contributions to losses for the business year 2021 up to the expense ceiling of EUR 280 million.

    Such contributions are granted by the Italian tax authority upon filing of the relevant application.

    Businesses carrying out one of the activities:

    • referred to the attached ATECO codes as main activity are entitled to contributions up to 30% of the contributions provided for in the "Ristori Decree",
    • referred to the ATECO codes not included in annex 1 are entitled to contributions to losses up to 30% of the value calculated on the basis of the data in the filed application and the criteria established by section 25 (4-6) of Italian Decree Law no. 34/2020, if the conditions set forth in the "Ristori Decree" (i.e. loss in turnover in April) are met.

     

    NEW CONTRIBUTIONS TO LOSSES UNDER THE "RISTORI-BIS DECREE"

    Businesses that as of 25 October 2020

    • are holders of an active VAT number (no businesses having activated the VAT number from 25 October 2020),
    • carry out one of the activities referred to the attached ATECO codes as main activity (see annex 2),
    • with tax domicile or operational offices in those Italian high-risk areas facing very serious challenges

    and set forth in the orders of the Italian Ministry of Health pursuant to section 3 of Italian DPCM as of 3 November 2020,

    are recognised the contributions to losses under the "Ristori Decree" with the rates provided for in annex 2.

    Hence, contributions to losses are recognized:

    • to the extend established for the previous contributions pursuant to section 25 of Decree Law no. 34/2020, and hence:
    • of 20 percent for those with proceeds or income not exceeding EUR 400,000,
    • of 15 percent for those with proceeds or income not exceeding EUR 400,000 and up to EUR 1 million,
    • of 10 percent for those with proceeds or income exceeding EUR 1 million,

    multiplied by

    • the ratio provided for the respective activity category (see annex 2).

    However, the contributions may not exceed EUR 150,000.

     

    TAX CREDIT FOR NON-RESIDENTIAL PROPERTY AND BUSINESS LEASE RENTALS

    The tax credit for non-residential properties and business lease rentals under section 8 of the "Ristori Decree" for October, November and December 2020 is granted to:

    • businesses affected by the new restrictions provided for in DPCM as of 3 November 2020 operating in the industries set forth in annex 2,
    • businesses carrying out the activities referred to the ATECO codes 79.1, 79.11 and 79.12 (travel agents and tour operators) with operational offices in the Italian high-risk areas facing very serious challenges and set forth in the orders of the Italian Ministry of Health pursuant to section 3 of Italian DPCM as of 3 November 2020.

     

    NO SECOND INSTALMENT OF MUNICIPAL PROPERTY TAX DUE

    Without prejudice to the measures already provided for in the "August Decree", for 2020 no second instalment of Municipal Property Tax is due (would be due on 16 December 2020) for properties and their respective appurtenances:

    • where the activities referred to the ATECO codes specified in annex 2 are carried out, provided that the respective owners also operate the businesses carried out therein,
    • located in the municipalities of the Italian high-risk areas facing very serious challenges and set for in the orders of the Italian Ministry of Health pursuant to section 3 of DPCM as of 3 November 2020.

     

    POSTPONEMENT OF SECOND TAX PREPAYMENT INSTALMENT DUE BY TAXPAYERS SUBJECT TO ISA (TAX RELIABILITY INDEXES)

    For taxpayers subject to ISA:

    • carrying out the activities referred to in annex 1 and annex 2 with tax domicile or operational offices in those Italian high-risk areas facing very serious challenges and set forth in the orders of the Italian Ministry of Health pursuant to section 3 of Italian DPCM as of 3 November 2020,

    or

    • running restaurants in those Italian high-risk areas facing very serious challenges and set forth in the orders of the Italian Ministry of Health pursuant to section 2 of DPCM as of 3 November 2020,

    the payment of the second or sole prepayment instalment of corporate tax and regional tax on productive activities (IRAP) due for the tax period subsequent to the one as of 31 December 2019 is postponed until 30 April 2021, regardless of the loss of turnover or proceeds.

    Payments already made are not reimbursed.

     

    SUSPENSION OF PAYMENTS

    For businesses:

    • carrying out the suspended activities pursuant to section 1 of DPCM as of 3 November 2020 with tax domicile, registered office or operational offices anywhere in Italy,
    • providing restaurant services with tax domicile, registered office or operational offices in those Italian high-risk areas facing serious or very serious challenges and set forth in the orders of the Italian Ministry of Health pursuant to section 2 and 3 of Italian DPCM as of 3 November 2020,
    • carrying out the activities referred to in annex 2, i.e. hotel business, travel agency or tour operator with tax domicile, registered office or operational offices in those Italian high-risk areas facing very serious challenges and set forth in the orders of the Italian Ministry of Health pursuant to section 3 of DPCM as of 3 November 2020,

    the following payments due in November 2020 are suspended:

    1. payment of withholding taxes on income from employment and similar income pursuant to sections 23 and 24 of DPR no. 600/1973 and payment of regional and municipal income surtaxes withheld by withholding agents;
    2. VAT payments.

    Payments already made are not reimbursed.

    The above suspended payments are made in one instalment by 16 March 2021 without any interests and penalties or in no more than 4 monthly instalments of equal amount, whereas the first instalment will be due by 16 March 2021.

     

    SUSPENSION OF SOCIAL SECURITY CONTRIBUTION PAYMENTS

    The suspension of social security contribution payments due in November 2020, already provided for in the "Ristori Decree", also applies to private employers of the activities referred to in annex 1. Such suspension does not apply to premiums levied by the Italian Workers' Compensation Authority (INAIL).

    Moreover, the suspension of social security contribution payments due in November 2020 also applies to private employers carrying out the activities referred to in annex 2 with production or operational facilities in those Italian high-risk areas facing very serious challenges and set forth in the orders of the Italian Ministry of Health pursuant to section 3 of DPCM.

    The Italian tax authority will submit the data identifying the above employers to the Italian welfare and social security institute (INPS), in order for them to benefit from the suspension measures.

    The suspended social security contribution payments are made without any interests and penalties in one instalment by 16 March 2021 or in no more than 4 monthly instalments of equal amount, whereas the first instalment will be due by 16 March 2021. The default to provide for the payment of two instalments, even if not consecutive, determines the deprivation of the right to make instalment payments. The above reliefs apply in accordance with the European Unions' existing State aid rules and regulations.

     

    Yours sincerely,

    HAGER & PARTNERS

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