SUPERBONUS 110%: LINKED SECONDARY WORKS
Regarding the so-called "Superbonus" pursuant to section 119 Decree-Law 34/2020, works aimed at eliminating architectural barriers may be considered "linked secondary works" even if they are carried out along with "leading" seismic improvement works and not only along with "leading" energy efficiency works.
Moreover, except for demolition and reconstruction works of buildings, the works referred to in section 119 of Decree-Law 34/2020 are considered extraordinary maintenance works and may be carried out by means of a certified notice of commencement of work (CILA).
Pursuant to section 119 Decree-Law 34/2020, the tax benefit is considered lost in case of: i) failure to submit the above notice (CILA); ii) works carried out not in accordance with the above notice (CILA); iii) failure to certify the data referred to the point above and iv) inexactness of the certifications. Submission of the above notice (CILA) does not require certification of compliance of the property (section 33 of Decree-Law 77 as of 31 May 2021).
SUPERBONUS 110%: NON-PROFIT ORGANISATIONS
Non-profit organisations may benefit from the Superbonus 110% pursuant to section 119 of Decree-Law 34/2020, regardless of the building register category and the use of the property subject to works. The above applies without prejudice to the exclusion of works carried out on property units in categories A/1, A/8 and A/9 and compliance with the other conditions provided for by law.
Moreover, the "type" of property and the "type of work" to be carried out shall be taken into account in order to determine the maximum amount eligible for deduction. However, it is not relevant whether the building is part of a condominium or not (Italian tax authority, answer to request for advance ruling no. 448 as of 25 June 2021).
SUPERBONUS 110%: COOPERATIVE WITH JOINT PROPERTY OWNERSHIP
Cooperatives managing properties through a property management condominium pursuant to section 201 et seq. of Law 1165/38 may benefit from the Superbonus 110% pursuant to section 119 of Decree-Law 34/2020, if the condominium is incorporated according to Italian Civil Code.
Moreover, the Superbonus 110% also applies if a property is wholly owned by a cooperative with joint property ownership and the property units are assigned to the members, provided that the expenditure and deduction limits set for each of the two types of works are respected.
If some of the property units owned by the cooperative are leased to third parties, the following applies:
- for leading works, the Superbonus 110% only applies if the total area of the property units assigned to the members exceeds 50%;
- for linked secondary works the above tax benefit applies only to property units assigned to members and not also to those leased to third parties that are not members.
The possibility of exercising the options under section 121 of Decree-Law 34/2020 remains unchanged (Italian tax authority, answer to request for advance ruling no. 430 and 431 as of 23 June 2021).
CONTRIBUTIONS TO LOSSES UNDER THE "SOSTEGNI-BIS DECREE"
The Italian tax authority has published a provision defining the content, methods and terms of filing the request for the contributions to losses pursuant to section 1(5-15) of Decree-Law 73/2021 (so-called "Sostegni-bis Decree") (decision no. 175776 as of 2 July 2021).
CONTRIBUTIONS TO LOSSES UNDER THE "SOSTEGNI DECREE"
The Italian tax authority has published several answers to requests for advance ruling concerning contributions to losses under the Sostegni Decree (Italian tax authority, answer to request for advance ruling no. 438-445 as of 30 June 2021).
FREE EVALUATION OF HOTEL BUSINESS ASSETS
According to the Italian tax authority, the free evaluation of hotel business assets does not apply to a holding company of a hotel group that leases hotels to its subsidiaries that directly carry out the hotel business (Italian tax authority, answer to request for advance ruling no. 450 as of 30 June 2021).
INCOME TAX DEDUCTIONS AND TAX ALLOWANCES
The Italian tax authority provides clarifications on expenses entitling to income tax deductions, tax allowances, tax benefits (including the Superbonus 100%) and other important elements for the individuals' tax return and the tax compliance certification for the tax year 2020 (Italian tax authority, newsletter no. 7 as of 25 June 2021).
FOREIGN SUBSTITUTE TAX
Foreign businesses are only required to fulfil the substitute tax obligations if they have a permanent establishment in Italy.
According to the Italian tax authority, in case of failure to pay withholding taxes by the permanent establishment, the 20% penalty pursuant to section 14 of legislative decree 471/1997 as well as the 30% penalty pursuant to section 13 of legislative decree 471/1997 apply (actually, the 30% penalty should no longer apply following the amendments introduced with legislative decree 158/2015); However, in this regard, the illustrative report to legislative decree 158/2015 has clarified that following the amendment of section 14 of legislative decree 471/1997 "compared to the previous wording, reference is no longer made to the provisions of section 13 in case of failure to pay. According to that provision, in case of assessment of unlevied or unpaid taxes, the taxpayer may not be subject to penalties for failure to pay" (Italian tax authority, answer to request for advance ruling no. 449 as of 25 June 2021).
GOODWILL DEDUCTION IN CASE OF TERMINATION OF BUSINESS ACTIVITY
In case of termination of business activity, the contingent liability deriving from the elimination of the goodwill is deductible for tax purposes within the limits of the non depreciated fiscal cost pursuant to section 101 (4) of Italian Tax Code (TUIR) (Italian Tax Authority, answer to request for advance ruling no. 429 as of 23 June 2021).