NEWSLETTER NO. 34 - 2020


    Under the Italian Decree-Law no. 137 as of 28 October 2020 (published in the Italian Official Gazette no. 269 as of 28 October 2020), the so-called "Ristori Decree", further measures in support of businesses are introduced.



    Businesses affected by restrictive measures introduced under DPCM as of 24 October 2020 to contain the COVID-19 pandemic are recognized new contributions to losses.

    Such contributions are granted to all businesses that as of 25 October 2020:

    • are holders of an active VAT number (the contributions are expressly not granted to those having activated the VAT number from 25 October 2020 or whose VAT number is no longer active at the time the contributions are requested);
    • declare that they carry out one of the activities referred to the attached ATECO codes as main activity (list may be extended by subsequent decree).

    However, there is no turnover limit. Hence, contrary to the previous contributions to losses pursuant to section 25 of Decree-Law 34/2020, the new contributions to losses are also granted to businesses with proceeds of more than EUR 5 million.

    Businesses are entitled to such contributions to losses, provided that the April 2020 amount of turnover and proceeds is lower than two thirds of the amount of the April 2019 turnover and proceeds. Holders of an active VAT number since 1 January 2019 are entitled to the contributions regardless of the decrease in turnover.

    Businesses that have already benefited from the previous contributions to losses pursuant to section 25 of Decree-Law 34/2020 and that were not obliged to repay the amount received will receive the new contributions from the Italian tax authority by transfer to the account to which the previous contributions were credited.

    However, businesses that failed to benefit from the previous contributions (or to which payment was denied e.g. because of IBAN irregularities) may request the new contributions electronically by using the form approved by Italian tax authority decision as of 10 June 2020.

    Contributions to losses are recognized:

    - to the extend established for the previous contributions pursuant to section 25 of Decree-Law 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 exceeding EUR 400,000 and up to EUR 1 million,
    • of 10 percent for those with proceeds or income exceeding EUR 1 million (as stated above, the new contributions are not subject to the turnover limits and are, hence, also granted to businesses with turnover of more than EUR 5 million),

    multiplied by

    - the ratio provided for the respective activity category (see attachment). More specifically, for hotels the ratio is 150 percent, for gyms 200 percent, for clubs 400 percent etc.

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

    The terms and methods of filing the contribution request are set forth in the decision of the Italian tax authority.



    Regardless of the proceeds and income achieved in the previous tax period, businesses carrying out the activities referred to the ATECO codes listed in the annex are entitled to the tax credit for the lease of non-residential properties and business lease pursuant to section 28 of Decree-Law 34/2020 at the same conditions even for the months of October, November and December.


    Both tax credits apply within the limits and conditions set out in the European Commission Communication as of 19 March 2020 C (2020) 1863 final "Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak". In order to cope with the COVID-19 emergency, the maximum threshold for aids has been raised to EUR 800,000 per undertaking. To this end, the Department for European Policies recently stated in its newsletter that the concept of an undertaking must be understood as designating an economic unit. Hence, according to such interpretation, the threshold of EUR 800,000 must be calculated with reference not to the single business but to the entire group to which it belongs.



    For 2020, no second instalment of Municipal Property Tax is due for real estate properties and appurtenances where the activities specified in the annex are carried out, provided that the respective owners also operate the businesses carried out therein.



    The deadline for filing the 770 form for 2019 is postponed to 10 December 2020.


    Yours sincerely,


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