Please find below the new provisions introduced under the Italian law-decree 157/2021 intended to combat fraud in the area of construction and renovation tax incentives and tax credit transfers, effective as of 12 November 2021.
The Italian tax authority may suspend the effects of a notice on the exercise of the options for a discount to the sales invoice (sconto in fattura) and the transfer of the tax credit (cessione del credito) provided for under section 121 and section 122 of the Italian law-decree 34/2020 within five business days from the submission of such notice for no more than 30 days to carry out preliminary controls.
The effects of such a notice on the exercise of the option are suspended in the presence of risk profiles relating to;
- the compliance and the correctness of data shown on the notices and options with the data available in the financial data archive or otherwise possessed by the Italian tax administration;
- the data on tax credits to be transferred and the persons that take part in the transaction to which such tax credits relate to, based on the information contained in the financial data archive or otherwise possessed by the Italian tax administration;
- and similar transfers made previously by the persons specified in the notices and options.
Upon such preliminary controls:
- the notice has no effect and the person that submitted it will be informed that it is deemed ineffective, if the risk profiles are confirmed;
- the notice becomes effective if the risk profiles are not confirmed.
The requirements as well as the terms and conditions for the implementation of the controls are still to be set forth in an order to be released by the director of the Italian tax authority:
The persons under section 3 of the Italian legislative decree 231/2007 that take part in tax credit transfers shall not acquire the tax credit, if the conditions under section 35 (suspicious transactions) and section 42 (objective impossibility to know your customer checks) of the Italian legislative decree 231/2007 are fulfilled.
SUPER BONUS 110 PERCENT - EXTENDED DUTY TO PROVIDE A TAX COMPLIANCE CERTIFICATE
Taxpayers that intend to directly benefit from the super bonus 110 percent tax deduction under section 119 of the Italian law-decree 34/2020 when filing their tax return, must request a tax compliance certificate on the data relating to the documentation proving that the conditions entitling to tax deduction are met (this is not necessary if the taxpayer directly submits his or her tax return himself or herself or through a withholding tax agent who also provides tax assistance).
OBLIGATIONS CONNECTED TO THE TAX CREDIT TRANSFER OR DISCOUNT TO SALES INVOICE FOR MEASURES NOT FALLING UNDER THE SCOPE OF THE 110 PERCENT SUPER BONUS
To exercise the option for a discount to the sales invoice and for the transfer of the tax credit for expenses incurred other than those falling under the scope of the super bonus under section 119 of the Italian law decree 34/2020
- a tax compliance certificate pursuant to section 35 of the Italian legislative decree 241/1997 confirming that the conditions entitling to tax deductions are fulfilled must be issued;
- a sworn certificate on the appropriateness of the expenses incurred pursuant to the provisions contained in section 119 (13-bis) of the Italian law-decree 34/2020 must be issued.
Please be reminded that the option for a discount to the sale invoice and for the transfer of the tax credit can be exercised for the following works (not falling under the scope of the 110 percent super bonus):
- regeneration works on existing building stock under section 16-bis (1a) and (1b) of the Italian Tax Code (TUIR);
- energy efficiency measures pursuant to section 14 of the Italian law-decree 63/2013;
- static strengthening and earthquake-prove construction measures under section 16 (1-bis - 1-septies) of the Italian law-decree 63/2013;
- facade renovation or restructuring under section 1 (219-220) of the Italian law 160/2019;
- installation of photovoltaic plants under section 16-bis (1h) of the Italian Tax Code (TUIR);
- installation of charging stations for electric vehicles under section 16-ter of the Italian law-decree 63/2013.
SWORN CERTIFICATES - PRICE LISTS
The Italian Ministry of Ecological Transition (Ministero della transizione ecologica - MiTe) will set forth price lists for certain goods in a decree that must be taken into consideration when issuing sworn certificates on the appropriateness of expenses pursuant to section 119 (13-bis) of the Italian law-decree 34/2020.
HAGER & PARTNERS