NEWSLETTER N.3 TAX MAY 2020

To deal with the current crisis, now also financial (and no longer just health), the Legislator has issued a new law Decree (Legislative Decree no. 34 of 19 May 2020, so-called “Relaunch Decree”) to provide with a substantial injection of liquidity into the system, through the provision of additional tax benefits, compared to those already introduced by the decrees “Cura Italia” and “Liquidity”.
This newsletter briefly illustrates the tax provisions that have a direct financial impact on companies, as well as the additional provisions, again of fiscal nature, that provide an additional help to all taxpayers.

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Tax provisions (and not) with financial impact

 

Provisions on the payment of IRAP	art. 24
Non-repayable grant	art. 25
Tax credits for capital increases in companies with revenues between 5 and 50 million euros for the transferors and for the transferee companies	art. 26
Tax credit for commercial rents	art. 28
Reduction of electricity bill charge	art. 30
Increased deduction for investments in innovative start-ups	art. 38
Tax credit for the adaptation of working environments	art. 120
Disposal of tax credits recognized for emergency Covid-19	art. 122
Reduction in VAT rate for supplies of goods necessary for the containment and management of the epidemiological emergency	art. 124
Sanitization tax credit	art. 125
Extension of the deadline for collection of suspended payments	art. 126
Extension of the time-limits for resumption of collection	art. 127
Revaluation of equity investments and areas tax values	art. 137
Tax credit for advertising investments	art. 186
Economic support measures for equal education	art. 233
Extended R&D tax credit for companies in the South	art. 244

 

Other fiscal provisions

 

Super depreciation: extension of the term to deliver the goods until 31.12.2020	art. 50
Storage and telematic transmission of daily fee data	art. 140
A lottery of fees	art. 141
Term extension of automated control	art. 144
Interruption of tax credit offsetting with tax debts booked in the register of the overdue payable tax debts	art. 145
Increase from 700 thousand to one million the threshold for compensation of tax credits	art. 147
Suspension of payments of amounts due as a result of acts of assessment with accession, conciliation, adjustment and settlement and recovery of tax credits	art. 149
Suspension of audits pursuant to art. 48-bis of Presidential Decree no. 602 of 1973	art. 152
Extension of the period of suspension of activities of the collection agent	art. 154
Extension of deadlines to facilitate the gradual recovery of economic and social activities	art. 157

 

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Tax provisions (and not) with financial impact

 

Art. 24 – Provisions on IRAP payment

 

Beneficiaries

Taxpayers with revenues or incomes not exceeding €250 million in the tax period prior to 19.5.2020 (i.e. in the 2019 period for “solar” taxpayers).

 

Tax advantage

Beneficiaries are exempt from paying:

1. the IRAP balance for the current tax period as at 31.12.2019 (2019, for “solar”);
2. the first installment of the IRAP advance for the following tax period (2020, for the “solar”).

 

Effects

 

• The relief under (i) is effective only for persons who, in 2019, increased the net production value compared to 2018 (who would have had to pay a balance in excess of the advances already paid and calculated on the amount of tax paid for the previous tax period);
• the advantage under (ii), in order to become effective, must, in any case, be taken into account and then deducted for the purposes of calculating the IRAP balance due for the current tax period (this means that for the purposes of calculating the tax balance actually due, the amount of the first advance payment, although not effectively paid, will be considered as if it had been paid and, therefore, will still be deducted).

 

 

Art. 25 – Non-repayable contribution

 

Beneficiaries

Taxpayers engaged in business activities, self-employment and agricultural income; holders of a VAT number provided that:

• the amount of revenues or incomes does not exceed 5 million euros in the tax period prior to the date of entry into force of this decree,
• the amount of the turnover and fees for April 2020 is less than two thirds of the turnover or fees for April 2019;
• taxpayers who started their business activity on or after 1 January 2019; and
• who, as of the date of the onset of the Covid-19 emergency, have their fiscal domicile or operational headquarters in the territory of municipalities affected by the aforementioned events whose states of emergency were still in place on the date of the declaration of the state of emergency Covid-19, even in the absence of the drop in turnover/revenue referred to in the first point above.

 

Tax advantage

Stakeholders are entitled to a non-refundable grant. The amount shall be determined by applying a percentage to the difference between (i) the amount of turnover and fees for April 2019 and the same amount for April 2020 as follows:

1. 20% in case of revenues or fees in the year 2019 not exceeding four hundred thousand Euros;
2. 15% in case of revenues or fees in the year 2019 exceeding four hundred thousand euros and up to one million euros;
3. 10% in the case of revenues or remuneration in the year 2019 of more than EUR 1 million and up to EUR 5 million.

• • In any case, a minimum amount of not less than one thousand euros for natural persons and two thousand euros for persons other than natural persons is guaranteed.

 

Details

• The non-refundable grant amount does not contribute to determine the income tax base, nor does it count for the purposes of the deductibility ratio referred to in Articles 61 and 109, paragraph 5, of the TUIR, and it does not concur to the formation of the net production value for IRAP purposes.
• Application to be submitted to the Revenue Agency within 60 days from the date of the start of the telematic procedure as provided for in the relevant provision.

 

Art. 26 – Tax credits for capital increases in companies with revenues between 5 and 50 million euros for the transferors and for the transferee companies

 

Beneficiaries – contributors

Subjects making cash contributions to one (or more) company in the form of S.p.A., S.A.A., S.r.l. (also simplified), cooperative societies, European companies and European cooperative societies, having their registered office in Italy, which has:

• revenues in excess of 5 million euros and up to 50 million euros;
• suffered, due to the epidemiological emergency from COVID-19, an overall reduction of no less than 33% in revenues in March and April 2020 (compared to the same period of the previous year);
• approved and executed, after the entry into force of this Decree-Law and by 31.12.2020, a capital increase for cash, fully paid.

 

Tax relief

Beneficiaries are entitled to a tax credit of 20% of the investment made. The investment on which the tax credit is calculated must not exceed € 2,000,000.

 

Details

The tax credit can be used:

• in the tax return for the tax period of the investment and subsequent tax returns, until the credit is fully offset; and
• to offset other taxes , from the tenth day following the day on which the tax return relating to the investment period is filed.

The following limits are not applicable:

• Euro 250,000 per tax period provided for the credits to indicate in the RU framework of the Income Statement (as per Article 1, paragraph 53, of Law no. 244/2007),
• Euro 1 million per tax period for the use as a credit offset (as per Article 34 of Law No 388 of 23 December 2000).

 

Forfeiture of the benefit

• The shareholding resulting from the contribution must be held until 31 December 2023.
• The distribution of reserves of any kind before that date by the contributing company causes the forfeiture of the benefit and the obligation of the taxpayer to return the amount deducted, together with legal interest.

 

Beneficiaries – transferee

Company in the form of S.p.A., S.A.A., S.r.l. (also simplified), cooperative societies, European companies and European cooperative societies, having their registered office in Italy, receiving cash contributions and having:

• revenues in excess of 5 million euros and up to 50 million euros;
• suffered, due to the epidemiological emergency from COVID-19, in March and April 2020, an overall reduction of no less than 33% in revenues (compared to the same period of the previous year);
• approved and executed, after the entry into force of this Decree-Law and by 31.12.2020, a capital increase for cash, fully paid;
• did not fall within 31 December 2019 in the category of companies in difficulty;
• is in a regular tax and contribution situation;
• complies with the regulations in force regarding building and urban planning, work, accident prevention and environmental protection;
• is not among the companies which have received but not repaid or deposited in a blocked account any aid deemed unlawful or incompatible by the European Commission;
• is not in the obstructive conditions set forth in Article 67 of Legislative Decree no. 159/2011;
• whose directors, shareholders, beneficial owners, have not been definitively convicted in the last five years for crimes committed in violation of the rules for the suppression of evasion of income tax and VAT and the penalty of disqualification from public office has not been applied to one of them.

 

Fiscal facilitation

Beneficiaries are entitled to a tax credit equal to 50% of the losses exceeding 10% of shareholders’ equity (before the losses themselves) within the limit of 30% of the capital increase referred to in the previous facility.

 

Dettagli

• The tax credit can be used for offsetting purposes, starting from the tenth day following the day of submission of the tax return relating to the tax period of the investment.
• The tax credit does not form income taxable base for IRES and IRAP purposes.

In offsetting taxes with the tax credit, are not applicable the following limits of:

• Euro 250,000 per tax period provided for the credits to indicate in the RU framework of the Income Statement (as per Article 1, paragraph 53, of Law no. 244/2007);
• Euro 1 million per tax period for the use as a credit offset (as per Article 34 of Law No 388 of 23 December 2000).

 

Forfeiture of the benefit

The distribution of any kind of reserves before 1 January 2024 results in forfeiture of the benefit and the obligation to return the amount, together with statutory interest.

 

Cumulation of credits and quantitative limits

• The tax advantages (tax credits) described above are cumulated with each other and with any other aid measures, by any person granted, from which the company has benefited under paragraph 3.1 of the Communication from the European Commission on a ‘Temporary framework for State aid measures to support the economy in the current COVID-19 emergency’.
• The total gross amount of the above mentioned aid measures must not exceed for each company the amount of EUR 800.000, or EUR 120.000 for enterprises operating in the fisheries and aquaculture sector or EUR 100.000 for enterprises operating in the primary production of agricultural products.
• The effectiveness of these tax advantages is subject to authorization by the European Commission.

 

Art. 28 – Tax credit for the rental of real estate for non-residential use and businessgoing concern rentals

 

Beneficiaries

Individuals engaged in business, art or professional activities and non-commercial entities that:

1. have achieved revenues/revenues for the period 2019 of less than 5 million euro (not required for hotels and agritourism businesses);
2. have suffered a decrease of at least 50% in turnover in each reference month.

 

Tax advantage

• tax credit, to be calculated on the total of the fees for the months of March, April and May (April, May and June for tourist accommodation facilities with only seasonal activity), equal to:
  • 60% of the monthly amount of the rent, leasing or concession of real estate for non-residential use intended for carrying out an industrial, commercial, craft, agricultural, touristic activity, or the usual and professional exercise of self-employment;
  • 30% in the case of service contracts for complex services or business rental, including at least one property for non-residential use, calculated on the rents of the property for non-residential use.

 

The tax credit referred to in this article cannot be cumulated with the tax credit referred to in Article 65 of Decree-Law no. 18 of 17 March 2020 (so-called “Cura Italia” decree), in relation to the same expenses incurred. The latter has a more limited scope of application: it can be used by all parties engaged in business activities, for the rent paid for the month of March only in relation to buildings stacked as C1, but without the need to prove the decrease in turnover referred to in point (2).

 

Art. 30 – Reduction of electricity bill charges

Beneficiaries

Subjects with low voltage connected electrical consumers, other than for domestic use (so-called “BTAU users”)

 

Advantage

The “fixed quotas” of expenditure (i.e. the components that do not vary according to the volume consumed by the user) identified as “meter transport and management” and “general system charges”, for electricity bills for the months of May, June and July 2020, are reduced, within the spending limit of 600 million euros, so that:

1. achieve savings, based on the value in force in the first quarter of the year, of the fixed tariff components applied per withdrawal point;
2. for non-domestic customers supplied with low-voltage power in excess of 3,3 kW, redetermine the grid tariffs and general charges based on a conventionally fixed ‘virtual’ power of 3 kW, without any limitation on withdrawals by those customers.

 

Details

This provision will be carried out directly by the Regulatory Authority for Energy Grid and Environment, which will redetermine, with its own measures, without any tariff increase for the users concerned, between 1 May and 31 July 2020.

 

Art. 38 – Increased deduction for investments in innovative start-ups

 

Beneficiaries

Individual taxpayers

 

Tax advantage

• Beneficiaries are entitled to a tax allowance for IRPEF purposes equal to the 50% of the amount invested in the share capital of one or more innovative start-ups (either directly or through collective investment schemes that invest mainly in innovative start-ups).
• The maximum deductible investment may not exceed, in each tax period, the amount of Euro 100,000 and must be maintained for at least three years.

 

Details

• The deduction only applies to investments in innovative start-ups registered in the special section of the Commercial Register at the time of investment.
• This tax allowance is an alternative to the deduction of 19% of the maximum deductible investment referred to in paragraph 3 and increased to Euro 1,000,000 (as per art. 29 of Decree-Law no. 179/2012).
• The transfer, even partial, of the investment before the expiry of the aforesaid term, implies the forfeiture of the benefit and the obligation for the taxpayer to return the amount deducted, together with the legal interest.

 

Art. 120 – Tax credit for the adaptation of working environments

 

Beneficiaries

Persons carrying out business, art or professional activities in places open to the public (such as bars, restaurants, hotels, cinemas indicated in Annex 1 of the Decree), associations, foundations and other private bodies, including Third Sector bodies.

 

Tax Advantage

• tax credit equal to 60% of the expenditure incurred in 2020, up to a maximum of €80,000, in relation to the measures necessary to ensure compliance with health requirements and containment measures against the spread of the COVID-19 virus, including those
  • construction works necessary for the renovation of changing rooms and canteens, for the construction of medical areas, entrances and common areas,
  • for the purchase of security furniture,
  • for investments having an innovative nature such as the development or purchase of tools and technologies necessary to carry out the business activity, and
  • for the purchase of temperature control equipment for employees and clients.

 

 Details

• The tax credit can be cumulated with other benefits for the same expenses,
• can only be used in the year 2021 for offsetting purposes;
• is transferable to other entities including credit institutions and other financial intermediaries.

In offsetting taxes with the tax credit, are not applicable to the following limits of:

• Euro 250,000 per tax period provided for the credits to be indicated in the OR framework of the Income Statement (as per Article 1, paragraph 53, of Law no. 244/2007).
• Euro 1 million per tax period for use as a set-off for credits (as per Article 34 of Law No 388 of 23 December 2000).

 

Art. 122 – Assignment of tax credits recognized for emergency by Covid-19

 

Beneficiaries

Beneficiaries of tax credits already granted to deal with the emergency by Covid-19

 

Tax Advantage

The parties concerned, who benefitted of one of the tax credits listed below, are allowed, instead of their the direct use of the tax credit, to opt for the transfer, even partial, to other parties, including credit institutions and other financial intermediaries (this option is exercisable until 31 December 2021);

 

Details

Assignable tax credits are as follows:

1. the tax credit for shops and stores referred to in Article 65 of Decree Law no. 18/2020;
2. the tax credit for rents for non-residential buildings, business leases referred to in Article 28 of Decree-Law no. 34/2020;
3. the tax credit for the adaptation of the working environments referred to in Article 120 of Decree-Law No 34/2020;
4. the tax credit for the sanitation of working environments as per art. 125 of Decree Law no. 34/2020.

• Assignees may also use the assigned credit to set-off other taxes in the F24 model, but in the same manner in which it would have been used by the assignor;
• the portion not used in the year cannot be used in subsequent years and cannot be requested for reimbursement.

In offsetting taxes with the tax credit, are not applicable the following limits of:

• Euro 250,000 per tax period provided for the credits to indicate in the RU framework of the Income Statement (as per Article 1, paragraph 53, of Law no. 244/2007).
• Euro 1 million per tax period for the use as a credit offset (as per Article 34 of Law No 388 of 23 December 2000).

Reference is made to the issuing of a measure by the Director of the Revenue Agency for the definition of the implementing rules.

 

Art. 124 – VAT rate reduction for the supply of goods necessary for the containment of the epidemiological emergency

 

Beneficiaries

Person trading in the products of the goods listed below.

 

 Tax Advantage

The parties concerned shall apply the following VAT treatment to the supply of the products listed below:

• the exemption from VAT on the supply of goods which takes place between 19 May 2020 (day of entry into force of the Decree) and 31 December 2020;
• the reduced rate of 5% when fully operational (i.e. from 1 January 2021).

 

The facilitated articles are expressly listed in Article 124 and are as follows:

• • Pulmonary ventilators for intensive and sub intensive care; multi parametric monitor also for transport; infusion pumps for drugs and peristaltic pumps for enteral nutrition; endotracheal tubes; helmets for continuous positive pressure ventilation; masks for non-invasive ventilation; suction systems; humidifiers; laryngoscopes; instrumentation for vascular access; electric aspirator; intensive care monitoring unit; portable echotomography; electrocardiograph; computer tomography; surgical masks; Ffp2 and Ffp3 masks; items of protective clothing for sanitary purposes such as latex, vinyl and nitrile gloves, protective visors and goggles, protective overalls, footwear and over-shoes, headgear, waterproof gowns, surgical gowns; thermometers; hand disinfectant detergents; wall dispensers for disinfectants; hydroalcoholic solution in liters; 3 per cent peroxide in liters; emergency trolleys; RNA extractors; diagnostic equipment for COVID-19; swabs for clinical analysis; sterile test tubes; equipment for the construction of field hospitals.

 

Details

• It is expressly recognized the right to deduct VAT on purchases of such goods made before the entry into force of the Relaunch Decree and, therefore, made at the ordinary VAT rate;
• This exemption system has no effect even for pro rata purposes, therefore, in the event that operators apply the tax deduction with this method, they will have to allocate the supplies in question among the taxable transactions and those assimilated, for the purposes of calculating the percentage of deductibility;
• The same tax treatment is also applicable to intra-Community acquisitions and imports of the goods listed above.

 

Art. 125 – Tax credit for sanitization and purchase of protective devices

 

Beneficiaries

Individuals engaged in business activities, arts and professions, arts and professions, non-commercial entities, including Third Sector entities and civilly recognised religious bodies

 

Tax Advantage

tax credit equal to 60% of the expenses incurred by 31 December 2020, up to a maximum amount of 60,000 euros, for the adoption of the necessary measures to contain and combat the spread of the Covid-19 virus; in particular, the following expenses are eligible for the tax credit:

1. the sanitation of the environments in which the work and institutional activity is carried out and the instruments used in the context of such activities;
2. the purchase of personal protective equipment, such as masks, gloves, visors and goggles, protective suits and footwear, which comply with the essential safety requirements of European legislation;
3. the purchase of safety devices other than those referred to in point (b), such as thermometers, thermoscanners, decontamination and sanitizing mats and trays, which comply with the essential safety requirements of European legislation, including any installation costs;
4. the purchase of devices to ensure interpersonal safety distance, such as barriers and protective panels, including any installation costs.

 

This is conceptually the same credit already provided for by art. 64 of the “Cura Italia” Decree, for sanitization expenses, and extended by art. 30 of the “Liquidity” Decree to the costs for the purchase of protective devices in the workplace, to the extent of 50% of the incurred and documented up to a maximum of € 20,000 for each beneficiary, up to a total limit of € 50 million for the year 2020, which are expressly repealed, to the benefit of a single and more complete regulatory provision.

 

Details

• The tax credit may alternatively be (i) used in the tax return for the tax period during which it is recognized or (ii) directly offset, using the F24 model, from the day after the payment of the expenses.

In offsetting taxes with the tax credit, are not applicable to the following limits of:

• Euro 250,000 per tax period provided for the credits to indicate in the RU framework of the Income Statement (as per Article 1, paragraph 53, of Law no. 244/2007);
• Euro 1 million per tax period for the use as a credit offset (as per Article 34 of Law No 388 of 23 December 2000).
• the criteria and procedures for the application and use of the tax credit will be established by a set of measures of the Director of the Revenue Agency, to be adopted within thirty days from the date of entry into force of the law converting this decree, in order to comply with the expenditure limit of Euro 200 million for the year 2020.

   

Art. 126 e 127 – Extension of the time limits for collection of suspended payments

 

Beneficiaries

All persons who had already benefited from the postponement of tax and contribution payments until 30 June 2020, i.e. respectively:

1. taxpayers carrying on business activities, art or profession, who have their fiscal domicile, registered office or place of business in the territory of the State with income or remuneration respectively
   • not exceeding €50 million in the tax period prior to the one in progress at the date of entry into force of this decree, which have suffered a decrease in turnover or fees of at least 33 per cent in March 2020 compared to the same month of the previous tax period and in April 2020 compared to the same month of the previous tax period; or
   • more than €50 million in the tax period prior to the one in progress at the date of entry into force of this decree, which suffered a decrease in turnover or fees of at least 50 percent in March 2020 compared with the same month of the previous tax period and in April 2020 compared with the same month of the previous tax period;
   • taxpayers carrying on business, art or profession, who have their fiscal domicile, registered office or place of business in the territory of the State and who have started the activity of business, art or profession after 31 March 2019;
   • taxpayers carrying on business activities, art or profession, who have their fiscal domicile, registered office or place of business in the provinces of Bergamo, Brescia, Cremona, Lodi and Piacenza, and who have suffered respectively a decrease in turnover or fees of at least 33 per cent in March 2020, in comparison with the same month of the previous tax period and in April 2020 compared to the same month of the previous tax period;
   • taxpayers who have their fiscal domicile, registered office or place of business in the territory of the State and who realized revenues or fees not exceeding Euro 400,000 in the tax period prior to the one in progress on 17 March 2020, and who have requested their debtors, acting as withholding agents, not to subject to the withholding tax referred to in Articles 25 and 25-bis of Presidential Decree no. 600 of 29 September 1973, revenues and fees received in the period between 17 March 2020 and 31 May 2020;
   • taxpayers who carry out a specific business activity expressly indicated in article 8 of Decree Law no. 9/2020 and article 61 of the “Cura Italia” Decree (for example, companies in the tourism sector, subjects that manage theatres, cinemas, lottery receptions, catering activities, fairs and events, museums and libraries, nurseries, amusement parks, transport services, etc.);
   • taxpayers carrying on business activities, art or profession that have their fiscal domicile, registered office or operating headquarters in the territory of the State with revenues or compensation not exceeding 2 million euros in the previous tax period and subjects carrying on business activities, art or profession that have their fiscal domicile, registered office or operating headquarters in the Provinces of Bergamo, Cremona, Lodi and Piacenza.

 

Tax Advantage

The deadline for making the following payments, already suspended until 30 June 2020, has been postponed to 16 September 2020:

1. withholdings on employees’ income, deductions relating to the regional and municipal surtax, VAT, social security and welfare contributions suspended by art. 18 of the Liquidity Decree for the months of April and May 2020;
2. withholdings deriving from the non-imposition on revenues and compensation received in the period between March 17 and May 31 by taxpayers with revenues or compensation not exceeding €400,000;
3. withholdings suspended from 2 March to 30 April and VAT due in March 2020;
4. self-liquidating payments relating to withholding taxes for employee and similar income, withholdings relating to the regional and municipal surtax, value-added tax, social security and welfare contributions, as well as compulsory insurance premiums

 

Details

Suspended payments may be made, without the application of penalties and interest, in a single instalment by 16 September 2020 or up to a maximum of four equal monthly instalments, with the first instalment being paid by the deadline of 16 September.

 

Art. 137 – Revaluation of the purchase cost of land and equity investments not traded on regulated markets

 

Beneficiaries

Individuals, holding the above-mentioned assets not in the exercise of business activity, and ordinary partnerships

 

Tax Advantage

Stepping up the tax value of land for building and agricultural use and of equity investments not traded on regulated markets, held on 1 July 2020.

 

Details

• The acknowledgment of the stepped-up value is subject to the payment of a substitute tax, at a rate of 11 percent, to be applied to the higher value attributed to the assets.
• The higher value of land and equity investments must result from a special appraisal to be drawn up and sworn within the 30^th of September 2020.
• The substitute tax may be paid in one installment by 30 September 2020, or in three equal annual installments from that date.
• The interest of 3% is due to the amounts following the first installment and must be paid together with each installment.

 

Art. 186 – Tax credit for advertising investments

 

Beneficiaries

Companies, self-employed individuals and non-commercial entities

 

Tax advantage

Beneficiaries who invest in advertising campaigns in the daily and periodical press, including online, and in local, analogue or digital television and radio stations are entitled to a tax credit equal to 50% of the value of all investments made in advertising.

 

Details

• The tax credit can only be used for offsetting purposes, pursuant to Article 17 of Legislative Decree No. 241 of 9 July 1997, following a direct request to the Department for Information and Publishing of the Presidency of the Council of Ministers.
• New applications may be submitted between 1 and 30 September 2020.
• The benefit is granted up to a limit of 40 million euros for advertising investments made in daily newspapers and periodicals, including online, and up to a limit of 20 million euros for advertising investments made on local and national television and radio stations, whether analog or digital, not owned by the State.

 

Art. 233 – Measures to provide economic support for equal education

 

Beneficiaries

1. Subjects that continuously manage the educational services and non-state educational institutions for children referred to in Article 2 of Legislative Decree No 65 of 13 April 2017.
2. Equal primary and secondary schools

 

Tax Advantage

In 2020, by way of economic support, in relation to the reduction or non-payment of fees or co-participation fees, however named, by users, caused by the suspension of services following the safety measures taken to counter the spread of Covid-19 is paid:

• a total contribution of EUR 65 million to the parties concerned under 1);
• a total contribution of EUR 70 million to stakeholders under 2).

 

Details

By decree of the Minister of Education, these contributions are distributed among the regional education offices in proportion to:

1. the resident population aged between zero and six years,
2. the number of pupils up to the age of sixteen enrolled in the non-state educational institutions .

 

Art. 244 – Tax credit for research and development activities in the areas of Southern Italy

 

Beneficiaries

Companies operating in the regions of Abruzzo, Basilicata, Calabria, Campania, Molise, Apulia, Sardinia and Sicily

 

Tax Advantage

The percentages for the calculation of the tax credit on investment in research and development activities, relating to production facilities located in the above mentioned regions, are increased as follows:

1. for large enterprises (employing at least 250 persons and having an annual turnover of at least 50 million) the percentage for the calculation of credit is increased to 25%.
2. for medium-sized enterprises (employing at least 50 persons and having an annual turnover of at least EUR 10 million), the same percentage shall be 35%.
3. for small enterprises, the credit shall amount to 45% of eligible investments

 

Other fiscal provisions

 

Art. 50 – Over-amortisation: extension of delivery of goods already ordered to 31.12.2020

 

Beneficiaries

Taxpayers carrying out business activities, individuals practitioners of the arts and professions who:

• have made investments in new capital goods, excluding vehicles and other means of transport;
• are awaiting delivery of the goods purchased.

 

Tax Advantage

The deadline of 30 June 2020 is postponed to 31 December 2020, by which it was necessary to deliver the new goods, in order to benefit from super depreciation (30% notional increase in the purchase cost), provided that the party concerned has received acceptance of the order from the supplier and paid advances of at least 20% of the purchase cost by 31.12.2019.

Essentially, the Decree grants an additional 6 months to the supplier to deliver the goods already ordered and does not extend the effectiveness of the over-amortization facilitation.

 

Art. 140 – Storage and telematic transmission of daily fee data

 

Beneficiaries

Retailers and similar taxpayers, with a turnover less than or equal to 400,000 euros, required to electronically store and transmit the data of the daily fees, using the tools specifically identified by the Inland Revenue (telematic recorders, adapted cash registers, Server-RT, web procedure “Online Business Document”)

 

 Tax Advantage

• The non-applicability of penalties is extended by six months, until 31 December 2021, in order to provide the means to fulfil the obligation of electronic storage of the fees with the issue of the commercial document and subsequent electronic transmission.
• Until the same date, therefore, the parties concerned will be able to fulfil the storage obligation by certifying the transactions by means of a receipt or tax receipt and recording the fees in the fee register.

 

Art. 141 – Lottery of fees

 

Beneficiaries

• Retailers and similar taxpayers, with a turnover less than or equal to 400,000 euros, required to electronically store and transmit the data of the daily fees, using the tools specifically identified by the Inland Revenue (telematic recorders, adapted cash registers, Server-RT, web procedure “Online Business Document”)

 

Tax Advantage

The entry into force of the lottery receipts is postponed by six months, with effect from 1 January 2021.

 

Art. 144 – Remission in terms and suspension of payment of the amounts requested following the automated and formal control of the declarations

 

Beneficiaries

 

All taxpayers

 

Tax Advantage

• if executed by September 16, 2020, are considered as paid on-time payments of sums due by reason of (i) automated tax assessments, (ii) formal tax assessments on tax returns (or informal payment requests) as well as (iii) tax payment notices related to income subject to separate taxation, expiring between March 8, 2020 and the day prior to the date of entry into force of the decree, even for tax repayment plans currently in progress;
• the same payments falling due between the date of entry into force of the decree and 31 May 2020 can be postponed to 16 September 2020, without the application of penalties and interest.

 

Details

• These payments may be made in a single instalment by 16 September 2020 or in four equal monthly instalments starting on the same date and ending on the 16th of each subsequent month.

 

Art. 145 – Interruption of tax credit offsetting with tax debts booked in the register of the overdue payable tax debts

 

Beneficiaries

All taxpayers

 

Tax Advantage

Tax credits requested for reimbursement and to be paid by the Italian Tax Authority in 2020 cannot be offset against the debts already qualified as payables and due by the same taxpayer.

 

Art. 147 – Increase from 700 thousand to one million the threshold for offsets

 

Beneficiaries

All taxpayers

 

Tax Advantage

For the 2020 tax period, the maximum limit of tax credits and contributions that can be offset in this calendar year through the F24 model, or refundable to tax account holders, is increased from € 700,000 to € 1,000,000 (one million).

 

Art. 149 – Suspension of payments of sums due as a result of acts of assessment with accession, conciliation, adjustment and settlement and recovery of tax credits

 

Beneficiaries

All taxpayers

 

Tax Advantage

Is postponed to 16^th September 2020 the deadline to perform the payments of taxes, due within the period ranging between 9 March 2020 and 31 May 2020, by reason of:

• tax settlements;
• conciliation agreements;
• mediation agreements;
• payment notices grounded on the re-determination of the cadastral rental of real estates or claiming registration tax;
• payment notices for omitting the registration of rental or lease agreements;
• acts of recovery of unduly used tax credits;
• payment notices issued in the event of failure, deficiency or late payment of registration tax, inheritance tax, gift tax, substitute tax on loans and insurance tax.

 

Consistently with the above provision, the deadline for the notification of the first instance appeal against the above acts and the acts definable pursuant to Article 15 of Legislative Decree no. 218/1997, whose payments expire between 9 March and 31 May 2020, is extended to 16 September 2020.

The deadlines for the payment of the amounts due under the installment plans expiring between 9 March and 31 May 2020 have also been extended to 16 September 2020, with regard to the amounts payable by reason of the above-mentioned acts and of facilitated settlement agreements set out in Decree no. 119/2018 (definition of the PVC, the acts of the assessment procedure, pending disputes, as well as regularisation with voluntary payment of previous tax periods).

 

Details

• These payments can be executed in a single installment by 16 September 2020 or in four equal monthly installments, starting on the same date and ending on the 16th of each subsequent month.
• No penalties or interest shall be applied and there shall be no provision for repayment of amounts already paid.

 

Art. 152 – Suspension of audits pursuant to art. 48-bis of Presidential Decree no. 602 of 1973

 

Beneficiaries

All taxpayers

 

Tax Advantage

Between 8 March and 31 August 2020, public administrations and companies with a prevalent public shareholding pay their creditors without verifying that the latter are in default of their payment obligations, arising from the notification of one or more payment notices for a total amount of € 5,000 or more.

 

Details

The checks already carried out, for which the collection agent has not notified the payment order (as provided for in Article 72-bis of Presidential Decree no. 602/1973) are devoid of any effect; public administrations, as well as companies with a prevalent public shareholding, must make direct payment to their creditor.

 

Art. 154 – Extension of the period of suspension of the recovery agent’s activities

 

Beneficiaries

All taxpayers

 

Tax Advantage

• The deadline of payments, which expire in the period from 8 March to 31 August 2020, arising from payment notices issued by collection agents, as well as from tax assessments immediately enforceable, INPS debit notices, Italian Custom Authority tax assessments, , injunctions and local authority enforcement notices, are suspended.
  • Suspended payments must be made in one installment by 30 September 2020.
• For tax repayment plans in place as at 8 March 2020 and for acceptance measures, issued with reference to applications submitted up to 31 August 2020, the debtor’s forfeiture occurs in the event of non-payment of 10 installments, including non-consecutive ones (instead of the 5 normally provided for).
• The deadline for the payment of all the installments provided by the adherence of the special tax repayment regime named “Rottamazione‐ter”, “Saldo e stralcio” e “Rottamazione risorse proprie UE”, and due in 2020, is deferred until 10 December 2020. This option is provided for taxpayers who have regularly paid their installments due and expired in 2019.

 

Beneficiaries

Contributions forfeited by the benefits of the facilitated tax agreement

 

Tax Advantage

Beneficiaries may apply for a tax repayment plan for debts included in the preferential definition payment plans which, at 31 December 2019, had lapsed due to non-payment, insufficient or late payment of installments due in 2019.

 

Art. 157 –  Extension of deadlines in order to encourage the gradual resumption of economic and social activities

 

Beneficiaries

All taxpayers

 

Tax Advantage

The notification shall be given no earlier than 1 January 2021 and until 31 December 2021 (by way of derogation from the ordinary statute of limitation rule) tax assessments, tax challenges, penalty notices, deeds of tax credits recovery, payment notices, relating to deeds or taxes for which the statute of limitation, calculated without taking into account the period of suspension provided for by the D.L. Cura Italia, expires between 8 March and 31 December 2020.

This extension operates for all the tax deeds issued (even if not notified) by 31 December 2020.

Is extended by one year the deadline for notifying payment notices, issued in relation to:

• tax returns filed in the year 2018, for amounts due as a result of the automated settlement activity;
• tax return of the withholding agents’ files in the year 2017;
• the tax return filed in the years 2017 and 2018, for amounts resulting from the formal control activity.

 

LDP remains at your disposal for any further information or in-depth study of the above topics.