Tax credit for sanitation of working environment and purchase of Personal Protective Tools for the period June-August 2021

Foreword

Art. 32 DL 73/2021 (Decree Sostegni-bis) grants a tax credit equal to 30% of the total expenses incurred in the months of June, July and August 2021 up to a maximum of € 60,000 in relation to the sanitation of working environments and tools used, and the purchase of personal protective equipment (PPE) and other devices to ensure the health of workers and users, including the costs of administering swabs for Covid-19.

In particular, expenses incurred for the following are eligible for credit

1. the sanitation of the environments in which the work activity is carried out and of the tools used in the context of such activities;
2. the provision of swabs to persons carrying out work activities
3. the purchase of personal protective equipment, such as masks, gloves, face shields and goggles, protective suits and footwear, which comply with the essential safety requirements laid down in European legislation;
4. the purchase of cleaning and disinfection products;
5. the purchase of safety devices other than those referred to in point c), such as thermometers, thermoscanners, decontamination and sanitising mats and tubs, which comply with the essential safety requirements laid down by European legislation, including any installation costs;
6. the purchase of devices to ensure the interpersonal safety distance, such as barriers and protective panels, including installation costs where applicable.

In this regard, on July 15, the tax Authority issued Provision no. 191910 which establishes the criteria and methods by which it is possible to request and obtain the tax credit, also in order to guarantee the limit of expenses established by the law.

Procedures and deadlines for sending the communication

Those who meet the requirements provided by law to access the tax credit shall communicate to the Tax Authority the amount of eligible expenses incurred in June, July and August 2021 using the template named  “Communication of expenses for sanitation and purchase of protective devices“.

The Communication must be transmitted from 4 October to 4 November 2021, exclusively by telematic means, directly by the taxpayer, or using an intermediary through:

• the web service available in the reserved area of the website of the Revenue Agency;
• the telematic tools, in compliance with the requirements defined by the technical specifications attached to this measure.

A receipt, issued within a maximum of 5 days, certifies the acceptance or rejection with an indication of the relevant reasons: the receipt is made available to the person who transmitted the communication.

Amount of tax credit

The “theoretical” tax credit for each beneficiary

– is equal to 30% of the total expenses resulting from the Communication submitted;

– may not exceed the limit of €60,000.

In view of the legislator’s need to ensure compliance with the expenditure limit, after receiving the eligible expenditure notifications indicating the theoretical credit, the Tax Authority shall determine the percentage share of credits actually available, in relation to the available resources, and such percentage will be communicated  by 12 November 2021. In other words, the credit actually due will be determined by the credit requested in the Communication, multiplied by the percentage communicated in November.

Method of use of the tax credit

The tax credit may be used in relation to the expenses actually incurred:

• in the tax return for the tax period in which the expenditure was incurred;
• for setting off of taxes, starting from the working day following the definition of the percentage in relation to the available resources.

The tax credit for sanitation of working environment is not transferable to third parties, and the compensation limits set out in Art. 34 L. 388/2000 (maximum limit of tax credits and contributions that can be compensated or refunded to tax account holders), and Art. 1 c. 53 L. 244/2007 (annual limit for the use of tax credits to be indicated in the RU panel of the income tax return) do not apply.

LDP remains at your disposal to assist you in preparing and sending the communication, as well as for any further clarifications.