The main fiscal measures adopted by the Italian Government
Through its “Cure Italy”, “Liquidity”, “Relaunch” and “August” decree-laws, the Italian Government has implemented a series of fiscal measures aimed at supporting Italy's economy. Please find below the most significant of these measures, regarding: 1) suspensions, extensions and postponements; 2) cancellation and reduction of taxes; 3) incentives and non-refundable grants; 4) support for capitalisation; 5) sector-specific measures; 6) other measures.
1. Suspensions, extensions and postponements
Suspension of contribution payments for companies and professionals in the worst hit sectors: For operators in the sectors that have been worst hit by the crisis, payments were suspended of social security contributions and withholding tax on employee income and similar income for March and April 2020 (for employees), with these payments scheduled to be made from 16 September 2020. The amounts due may be settled as a lump sum payment, without any sanctions and interest being applied, or in up to four equal monthly instalments. Alternatively, the August Decree-Law stated that 50% of the suspended payments could be made as a lump sum payment by 16 September 2020, or in up to four equal monthly instalments, with the first instalment being due by 16 September 2020; the remaining 50% of the amount due may then be paid in instalments, without any sanctions and interest being applied, over a maximum of 24 equal monthly instalments, starting from 16 January 2021. The sectors concerned include tourism-hotels, spas, passenger transport, bars and restaurants, culture (cinemas, theatres), sports, education, amusement parks, events (fairs/conventions), amusement arcades and betting shops.
Suspension of contribution payments for companies and professionals with revenues or remuneration of under € 50 million: for companies and professionals who suffered at least a 33% reduction in turnover or remuneration in March and April 2020 compared with the same months in the 2019 tax year, contribution payments for April and May 2020 were suspended, relating to withholding taxes on employee and similar income and deductions for regional and municipal taxes, VAT, social security and welfare contributions and compulsory insurance premiums. The amounts due may be settled as a lump sum payment by 16 September 2020, or in up to four equal monthly instalments starting from 16 September 2020. Alternatively, the August Decree-Law stated that 50% of the suspended payments could be made as a lump sum payment by 16 September 2020, or in up to four equal monthly instalments (with the first instalment being due by 16 September 2020), with the possibility to spread payment of the remaining 50% over one or more equal monthly instalments, up to a maximum of 24 monthly instalments, starting from 16 January 2021.
Suspension of contribution payments for companies and professionals with revenues or remuneration exceeding € 50 million: for companies and professionals who suffered at least a 50% reduction in turnover or remuneration in March and April 2020 compared with the same months in the 2019 tax year, contribution payments for April and May 2020 were suspended, relating to withholding taxes on employee and similar income and deductions for regional and municipal taxes, VAT, social security and welfare contributions and compulsory insurance premiums. The amounts due may be settled as a lump sum payment by 16 September 2020, without sanctions and interest being applied, or in up to four equal monthly instalments starting from 16 September 2020. Alternatively, the August Decree-Law stated that 50% of the suspended payments could be made as a lump sum payment by 16 September 2020, or in up to four equal monthly instalments (with the first instalment being due by 16 September 2020), with the possibility to spread payment of the remaining 50% over one or more equal monthly instalments, up to a maximum of 24 monthly instalments, starting from 16 January 2021.
Suspension of contribution payments for companies and professionals with revenues/remuneration of less than € 2 million: self-assessment contribution payments due between 8 March 2020 and 31 March 2020, relating to taxes withheld at source for employee/similar income, were suspended, as were deductions for regional and municipal taxes, VAT and social security and welfare contributions and compulsory insurance premiums. The amounts due may be settled, without sanctions and interest being applied, as a lump sum payment by 16 September 2020, or in up to four equal monthly instalments starting from 16 September 2020. Alternatively, 50% of the suspended payments may be made as a lump sum payment by 16 September 2020, or in up to four equal monthly instalments starting from 16 September 2020, with the possibility to spread payment of the remaining 50% over one or more equal monthly instalments, up to a maximum of 24 monthly instalments, starting from 16 January 2021.
Suspension of contribution payments for self-employed workers and agents with revenues or remuneration of less than € 400,000 in the 2019 tax year: withholding agents will not apply withholding tax to revenues and remuneration generated in the period between 17 March 2020 and 31 May 2020, provided that, in the previous month, they did not incur any expenses for employee services or similar. In particular, the aforementioned parties may pay the suspended withholding taxes, without sanctions and interest being applied, as a lump sum payment by 16 September 2020 or in up to four equal monthly instalments, with the first instalment due by 16 September 2020. Alternatively, the August Decree-Law also allowed for 50% of the suspended payments to be made as a lump sum payment by 16 September 2020, or in up to four equal monthly instalments, with the first instalment due in September 2020; the remaining 50% of the amount due must be paid in instalments, without any sanctions and interest being applied, over a maximum of 24 equal monthly instalments, starting from 16 January 2021.
Contribution payments postponed for ‘Isa’ taxpayers and those belonging to the ‘regime forfettario’ (flat-rate tax regime): for those who have suffered a drop in turnover or remuneration of at least 33% in the first half of 2020 compared with the same period of 2019, the payment deadline for the second or single instalment of their advance on income taxes and IRAP (regional income tax) has been postponed until 30 April 2021. For the 2020 and 2021 tax years, legislation on composite fiscal reliability indices (‘indici sintetici di affidabilità fiscale’ or ‘ISA) has been amended to take into account the effects linked to the health emergency.
Suspension of payments of the sums due following tax inspections resulting in a settlement, rectification and liquidation and as part of the recovery of tax claims: the payment deadlines for the sums due between 9 March and 31 May 2020, including instalment payments, were suspended until 16 September 2020.
Possibility to cumulate the suspension of procedural deadlines and suspension as part of a tax inspection resulting in a settlement: it has been confirmed that the suspension of procedural deadlines may be cumulated with the 90-day suspension of the appeal time limit from when the petition is filed, as provided for by the procedure for tax inspections resulting in a settlement.
“Main dwelling” benefit deadlines extended: the deadlines regarding the “main dwelling” benefit shall be suspended between 23 February 2020 and 31 December 2020, to make sure that taxpayers do not lose this benefit.
Offsetting between tax credits and assessed arrears suspended: the regulation stating that the authorities must initiate a procedure to first offset any tax refund amount against assessed arrears, shall be suspended throughout 2020.
Seizures suspended on salaries and pensions: seizures on salaries, wages or other benefits relating to a work or employment relationship, as well as on pensions and similar payments, carried out by collection agents, have been suspended until 15 October 2020.
Default checks suspended: until 15 October 2020, the checks into defaults carried out by the Public Administration and companies in which the public authorities have a majority holding, before making payments – for whatever reason – for amounts exceeding € 5 thousand, shall be suspended. Any checks already carried out shall be considered null and void if, as at the date when Italian Decree Law no. 34/2020 came into force (i.e. 19/05/2020), the relative collection agent had not given notice of the seizure.
Suspension of payments deriving from charges entrusted to the collection agent: payments relating to charges entrusted to the collection agent are suspended until 15 October. Suspended payments must be made by the end of the month following expiry of the suspension period, and therefore by 30 November 2020. Payment instalment plans already in place, or granted for requests submitted before 15 October 2020, will no longer be permitted if ten instalments are not paid (instead of five).
Suspension of collection deadlines for the Italian Revenue Agency’s collection service: Notification of new payment orders and other collection deeds shall be suspended until 15 October 2020.
Relief from the time limit and suspension of payments for amounts requested following automated and formal checks of declarations: Payment deadlines (also for instalments) for tax payment notices expiring between 8 March 2020 and 31 May 2020 were deferred until 16 September 2020. The amounts due may be paid as a lump sum payment by 16 September 2020, or in four monthly instalments starting from September 2020.
Extension of tax payment certificates (“DURF”): Tax payment certificates issued before 29 February 2020 shall remain valid until 30 June 2020. This extension concerns certificates that allow companies and customers not to apply the control mechanism on withholding taxes.
Entry into force of the ‘Plastic tax’ and ‘Sugar Tax’ postponed: the entry into force of these two taxes has been postponed until 1 January 2021.
Measures relating to excise duties, customs duties and tobacco postponed: the entry into force of anti-fraud provisions for smaller operators has been postponed; payments of the excise duty on energy products released for consumption in March 2020 shall be considered duly paid if made by 25 May 2020; 60-day extension granted for the payment of customs duties due between 1 May and 31 July 2020; the payment deadline for taxes (excise duty and VAT) on manufactured tobacco and similar products, and non-burning inhalation tobacco, as well as the consumption tax on liquid inhalation products and accessories, due for the months of April and May, has been postponed until 31 October 2020.
Reduction and postponement of advance payments of excise duty on natural gas and electricity: the amount of the monthly advance instalments of excise duty on natural gas and electricity, from May to September 2020, will be equal to 90 per cent of the amounts calculated based on the previous year's consumption. Any necessary adjustments may be paid as a lump sum payment by the normal deadlines set by the Italian consolidated law on excise duty, i.e. by 31 March 2021 for natural gas and by 16 March 2021 for electricity, or, alternatively, they may be divided into ten equal monthly instalments, to be paid by the last day of each month from March to December 2021.
Reduction and postponement of payments of excise duty on energy products: for the months of April, May, June, July and August 2020, those obliged to pay this tax may opt to pay only 80% of the amounts due by the set deadlines and as an advance. The remaining amount shall be paid cumulatively by 16 November 2020. Owners of tax warehouses for energy and alcohol products may also opt to pay their excise duty in instalments.
Stamp duty payment procedure for electronic invoices postponed until 1 January 2021: the Italian Revenue Agency's procedure to integrate the stamp duty due on electronic invoices sent via its Interchange System that do not state that said tax has been paid will not be applied until 1 January 2021.
Entry into force of the electronic storage and transmission system for daily payment data and the “receipt lottery” postponed: sanctions suspended until 1 January 2021 in the event of a delay in sending daily payment data. In short, the transitional system to store payment data relating to those with a turnover of up to € 400,000 has been postponed from 1 July 2020 until 1 January 2021. As a result of the electronic transmission of payment data being postponed, the launch of the “receipt lottery” has also been postponed until 1 January 2021.
2. Cancellation and reduction of taxes
VAT and excise duty ‘safeguard clauses’ abolished: starting from 1 January 2021, the so-called ‘safeguard clauses’ will be definitively abolished, which would otherwise automatically increase VAT rates and excise duties on certain fuel products.
2019 IRAP balance and the first instalment of the 2020 IRAP advance payment cancelled: companies with a turnover of less than € 250 million, self-employed workers with a corresponding remuneration amount and non-commercial entities are no longer required to pay the IRAP (regional income tax) balance for 2019, nor the first instalment of the advance IRAP payment due for 2020 (equal to 40%). The amount of this payment shall nonetheless be excluded from the calculation of the tax settlement amount due for said tax year. Advance payments for the 2019 tax year must still be paid. This regulation does not apply to banks and other financial institutions and companies, and nor to insurance companies, public administrations and public bodies.
Reduction of the fixed amounts in energy bills: for the months of May, June and July 2020, the Italian Regulatory Authority for Energy, Networks and the Environment (“ARERA”) reduced expenditure for end users of low-voltage electricity, other than domestic users, with reference to the billing items “transport and meter management” and “general system charges”, to the benefit of manufacturers and businesses.
Exemption from the “IMU” property tax: many types of property are to be exempt from the first and second instalment of the 2020 IMU property tax, including those used as beach establishments and those falling under category “D2” of the land registry (i.e. hotels and guesthouses). Buildings used as cinemas and theatres shall also be exempt from the IMU property tax for 2021 and 2022.
TOSAP and COSAP exemption: licensed catering companies or licensed companies serving drinks, as well as concessionaires for the use of ‘public land’, shall be exempt from paying the taxes and fees for the occupation of public spaces and areas (‘TOSAP’ & ‘COSAP’), from 1 May until 31 December 2020. Measures have also been introduced to simplify the process to apply for new concessions to occupy public land or to extend the areas already granted.
Holders of concessions or authorisations concerning the use of public land for street trading in a public area were also exempt from TOSAP and COSAP payments between 1 March 2020 and 30 April 2020.
VAT rate reduced for the sale of goods necessary to contain and manage the epidemiological emergency: VAT reduced (from 22% to 5%) on masks, ventilators and other devices to protect workers’ safety. Until 31 December 2020, as a transitional measure, the sale of these goods will be fully exempt from VAT with deductibility (VAT rate equal to zero).
3. Incentives and non-refundable grants
Non-refundable grant: a non-refundable grant has been introduced for individuals whose business/self-employed work generates a turnover of up to € 5 million and who recorded at least a 33% drop in revenues in April 2020 compared with April 2019. This grant is paid by the Italian Revenue Agency, applying a percentage to the difference between the turnover/remuneration amount in April 2020 and the turnover/remuneration amount in April 2019; this percentage is equal to 20% for those with revenues/remuneration not exceeding € 400 thousand, 15% for those with revenues/remuneration of between € 400 thousand and € 1 million and 10% for those with revenues/remuneration of between € 1 million and € 5 million. The minimum grant amount shall be no less than € 1,000 for natural persons and € 2,000 for non-natural persons.
Sanitisation tax credit: a 60% tax credit has been introduced for expenses incurred to sanitise workplaces and equipment, as well as to purchase personal protective equipment and other devices to safeguard workers’ and users’ health; this benefit is capped at € 60 thousand. The tax credit refers to expenses that have actually been incurred and beneficiaries may use it, up to the maximum amount defined based on a dedicated notification to be submitted by 7 September 2020, in their tax return for the tax year in which the expenses were incurred, or for offsetting purposes starting from 14 September 2020.
Tax credit for the adaptation of work environments: another tax credit has been introduced for the adaptation of work environments to comply with Covid measures, by those running a business or carrying out artistic activities or a profession, associations, foundations and other private entities. The maximum tax credit amount that can be used by each beneficiary is equal to 60% of the total expenses, as reported in the last validly submitted notification, which in this case must be sent between 20 July 2020 and 30 November 2021. The maximum amount of eligible expenses must not exceed € 80,000. This tax credit may only be used, up to the maximum defined amount, for offsetting purposes between 1 January 2021 and 31 December 2021.
Tax credit for rent: for tenants of properties for non-residential use, intended for carrying out industrial, commercial, craft, agricultural or tourist activities or to regularly carry out professional, self-employed work, a 60% tax credit has been introduced for the monthly rental, leasing or concession fees relating to the months of March, April, May and June 2020 (April, May, June and July for tourist facilities that only carry out seasonal activities); this tax credit may be used on the condition that, in the month in question, there was at least a 50% decrease in turnover compared with the same month of the previous year. This measure applies to those running a business or carrying out artistic activities or a profession and to non-commercial entities (also in relation to the performance of institutional activities) with revenues or remuneration of up to € 5 million in 2019. This threshold does not apply to hotels, travel agencies, tour operators or spas. This relief also extends to complex service agreements and business leasing contracts (with a tax credit of 30%) and to retail trade businesses with revenues or remuneration that exceeded € 5 million in 2019 (with a tax credit equal to 20% of the rental, leasing or concession fee and equal to 10% for complex service agreements and business leasing contracts). This tax credit may be used in the tax return relating to the tax year when the expenses were incurred, or for offsetting purposes, and may also be transferred to the landlord/lessor instead of paying the corresponding part of the relative fee.
Incentives to improve energy efficiency and reduce the earthquake risk (110% ‘ecobonus’ and ‘seismabonus’): a 110% tax deduction is available for expenses incurred between 1 July 2020 and 31 December 2021 for works to improve energy performance (thermal insulation work and other measures to improve energy efficiency, as well as the installation of photovoltaic systems and columns to charge electric vehicles) and/or for earthquake protection work. The individual who incurs the relative expenses may opt to transfer a tax credit of the same amount to others, including credit institutions and other financial intermediaries, instead of using the deduction directly themselves.
Electronic payment incentives (cashback): as part of the ‘Cashless plan’, a cash refund is available for natural persons, residing in Italy, who make purchases using electronic payment instruments (as long as these purchases are not part of their carrying out business, artistic or professional activities). For this purpose, € 1.75 billion has been set aside for 2021 and € 3 billion has been set aside for 2022.
Green car incentives: the Fund for government incentives has been increased to € 500 million. Incentives have been introduced for those who buy and register cars with low CO2 emissions in Italy, in order to support the recovery of the automotive industry, while encouraging the development of new technology. Incentives for 0-20 g/km and 21-60 g/km emission bands are as follows: 0-20 g/km: € 6,000 if an old car is scrapped and € 4,000 if an old car isn’t scrapped; 21-60 g/km: € 2,500 if an old car is scrapped and € 1,500 if an old car isn’t scrapped. An additional incentive is available for these two emission bands up until 31 December 2020, equal to € 2,000 if an old car is scrapped and € 1,000 if an old car isn’t scrapped. With regard to the two new emission bands, 61-90 g/km and 91-110 g/km, the following incentives have been redefined: 61-90 g/km: € 1,750 if an old car is scrapped and € 1,000 if an old car isn’t scrapped; 91-110 g/km: € 1,500 if an old car is scrapped and € 750 if an old car isn’t scrapped. The incentive relating to the two new emission bands may be requested for vehicles purchased and registered from 1 August 2020.
Refinancing of the “New Sabatini” subsidy: this refinancing is aimed at guaranteeing continuity for the "New Sabatini", a subsidy granted to micro, small and medium-sized enterprises; this consists of a subsidised loan being granted for investments in new machinery, plant and equipment, as well as a correlated government grant for new facilities, calculated in relation to the interest on the aforementioned loans. The ‘simplification decree’ also had an effect on this measure, raising the threshold for the government subsidy to be paid as a lump sum payment (as opposed to several instalments) from € 100,000 to € 200,000. To provide further support for innovative investments made by micro and small enterprises in the south of Italy, incentives (in this case, if they refer to key Industry 4.0 investments) may be increased from 30% to 100%, and are paid to the beneficiary companies as a lump sum, following the procedures defined by a specific decree issued by the Italian Minister of Economic Development, in agreement with the Minister of Economy and Finance.
Revaluation of business assets and equity investments: it is possible to revalue assets (tangible or intangible), for statutory accounting purposes only, free of charge. For a fee, but on an optional basis, it is also possible to recognise the higher amounts recorded in the financial statements for tax purposes, subject to the revaluation being carried out in said financial statements. The greater value attributed to assets and equity investments will be recognised, for tax purposes, from the financial year following the year when the revaluation was carried out and the procedure will be finalised through payment of a 3% substitute tax for income taxes, IRAP (regional income tax) and any surtaxes. There is also the possibility to fully or partially redeem the positive balance resulting from the revaluation through a 10% substitute tax being applied to the company for income taxes, IRAP (regional income tax) and any surtaxes. Both the substitute taxes provided for by the ‘August Decree’ (for the revaluation and for a possible redemption) may be paid in up to three equal instalments; the first due date will be the deadline for payment of the income tax balance relating to the tax year in which the revaluation was carried out, with the subsequent instalments being due by the deadline set for payment of the income tax balance for the subsequent two years. The substitute tax may be offset in the ‘F24’ form.
Tax deductibility of COVID-19 donations: the donations made by companies that can be deducted for tax purposes have been extended to also include those to support measures to combat the epidemiological emergency. A 30% deduction is also available for donations made by natural persons and non-commercial entities, with a limit of € 30 thousand on this benefit. Donations that can benefit from these incentives include those made by natural persons, by non-commercial entities and by subjects receiving business income concerning support for the measures to combat the COVID-19 emergency and made in favour of the Italian government, regional authorities, local authorities, public bodies or institutions, foundations and legally recognised non-profit associations, including religious organisations. Donations of resources to help combat the epidemiological emergency must be considered to have been made as part of running a business or carrying out artistic activities or a profession, in order to retain the right to deduct VAT.
Corporate welfare: for 2020, the threshold for the value of assets and services that a company can provide to its employees without these contributing to their income has been doubled. The limit has therefore been increased from € 258.23 to € 516.46.
4. Support for capitalisation
Favourable tax regime for investments in innovative start-ups and SMEs: a tax deduction is available for natural persons who invest in innovative start-ups or SMEs, equal to 50% of the amount invested. The maximum deductible investment amount may not exceed, per tax year, € 100,000 for innovative start-ups and € 300,000 for innovative SMEs and investments must be held for at least three years. This incentive integrates the set of measures introduced to encourage equity holdings in innovative start-ups and SMEs and is an alternative to the “normal” provision whereby those subject to IRPEF (personal income tax) and IRES (corporate income tax) who invest in innovative start-ups or SMEs may benefit, respectively, from a tax deduction of 30% and a deduction of 30% of the amount invested.
Incentives for investments in the real economy (‘Super-PIR’): measures aimed at encouraging investments in the real economy and, in particular, in non-listed companies, have been strengthened. This provision has introduced a new type of 'Individual Savings Plan’ (‘Piani Individuali di Risparmio’ or ‘PIR’), involving more than 70% of the investment amount being made in companies rooted in Italy, other than those whose securities are traded in Borsa Italiana’s FTSE MIB and FTSE MID Cap indices or equivalent indices on other regulated markets. For these individual savings plans, the so-called ‘concentration constraint’ stands at 20% instead of 10%. Another feature of these instruments is the higher size limit for the investments made: € 300,000 per year and € 1,500,000 overall (instead of € 30,000 per year and € 150,000 overall in the case of “ordinary” individual savings plans).
Tax incentives for the recapitalisation of enterprises with a turnover of between € 5 million and € 50 million: support measures have been introduced for limited liability companies or cooperatives (excluding those operating in the banking, financial and insurance sectors and holding companies) that complete a share capital increase, have their headquarters in Italy and have revenues of between € 5 and 50 million and that, in the months of March and April 2020, recorded at least a 33% drop in revenues compared to 2019. A tax credit equal to 20% of the invested amount is available, as long as the investment does not exceed € 2 million and the relative equity investment is held until 31 December 2023; this tax credit applies to those who make a cash contribution in order to complete a capital increase in one or more companies. An additional tax credit is available for the recapitalised company, equal to 50% of any losses exceeding 10% of the shareholders' equity, up to 30% of the capital increase amount itself. The 'SME Capital Fund’ has also been established, which will be able to subscribe bonds or debt securities of companies with revenues exceeding € 10 million and that increase their share capital by at least € 250,000.
Tax incentives for the recapitalisation of companies with a turnover exceeding € 50 million: support measures have been introduced for the recapitalisation of ‘società per azioni’ (companies limited by shares) that are based in Italy, do not operate in the banking, financial or insurance sector and have a turnover of more than € 50 million, in the form of ‘dedicated assets’ held by the Cassa Depositi e Prestiti. The requirements to access these dedicated assets, as well as the relative terms and conditions and the criteria and procedures relating to the measures, shall be defined by a decree passed by the Italian Minister of Economy and Finance, having consulted with the Italian Minister of Economic Development. These dedicated assets may be used to implement measures by subscribing convertible bonds, contributing to capital increases and purchasing shares listed on the secondary market in the case of strategic transactions. The dedicated assets may also be used for the restructuring of companies in crisis that have recovery prospects. From a fiscal point of view, it has been established that: i) the income and value of production of the dedicated assets shall be exempt from any tax; ii) any form of income received by the dedicated assets shall not be subject to withholding taxes and substitute taxes for income taxes; iii) all the deeds, contracts, transfers, services and formalities relating to the transactions carried out by the dedicated assets shall be excluded from VAT, financial transaction tax, registration tax, land registry taxes and any other indirect taxes or duties; iv) interest and capital gains generated by the dedicated assets shall be subject to a 12.5% substitute tax.
5. Sector-specific measures
Holiday tax credit: for services offered in Italy by tourist-accommodation companies and bed & breakfasts, a tax credit has been introduced for 2020, which may be used from 1 July to 31 December 2020, by families with an ISEE income of up to € 40,000. This tax credit is equal to € 500 for each family unit, € 300 for families made up of two people and € 150 for one-person households; 80% of the credit may be used in the form of a discount on the amount due, paid in advance by the providers of the tourist service in question, while the remaining 20% may be used in the form of a tax deduction for the individuals entitled to it. The discounts granted will be reimbursed to the service providers as a tax credit that can only be used for offsetting purposes, with the possibility to transfer said tax credit to their own suppliers of goods and services or to other private individuals, as well as to credit institutions or financial intermediaries.
Tax credit for redevelopment work in the tourism and spa industry: a 65% tax credit has been introduced for expenses incurred for redevelopment and improvement work carried out by companies in the hospitality and spa industry, including holiday farms and campsites; for this purpose, € 180 million has been set aside per year for 2020 and 2021.
Non-refundable grant for catering establishments: € 600 million has been set aside to support catering businesses whose turnover between March and June 2020 was three quarters less than the turnover recorded during the same period in 2019; to this end, a non-refundable grant will be offered for the purchase of Italian agricultural products, food and wine. 90% of this grant will be paid in advance upon acceptance of the application.
Non-refundable grant for traders in Italy’s historic centres: € 500 million has been set aside to provide non-refundable grants to traders in Italy’s historic centres who have recorded a significant drop in foreign tourists and who, in June 2020, recorded a turnover of less than two-thirds that of the same month in 2019; a minimum of € 1,000 will go to natural persons and € 2,000 to other entities meeting these requirements.
Funds for cultural initiatives and institutions: the ‘Enterprise and cultural institutions emergency fund’, introduced by the Relaunch Decree, has been increased to € 231.5 million, and the ‘Cinema, entertainment and audiovisual sector emergency fund’, introduced by the Cure Italy Decree, has been increased to € 335 million. A total of € 90 million is going towards museums and the implementation of measures as part of the strategic plan entitled ‘Major Cultural Heritage Projects’.
Support measures for the transport sector: resources have been strengthened to support various transport activities, including taxis and car & driver hire services, road haulage, tourist buses and passenger and cruise services, with € 200 million being set aside for this purpose. The deadline to pay vehicle tax for long-term lease vehicles, without a driver service, has been postponed from 31 July to 31 October 2020.
6. Other measures
Telematic tax collection proceedings: to facilitate the digitisation also of judicial documents that were initially disputed by the parties in paper format, the tax authorities, collection agents and parties assisted by a qualified lawyer, who have appeared in court following analogue procedures, are required to serve and file subsequent documents, as well as the relative judgements, exclusively by electronic means.
Free sale of medicine for compassionate use: the tax effects generated by the sale of medicines shall be cancelled as part of "compassionate use” schemes (still being tested), treating such medicines, for VAT purposes, as if they had been destroyed and excluding their normal value from contributing to revenues for direct tax purposes.
Remote tax assistance: for tax assistance services relating to 2020, taxpayers can electronically send authorised tax advice centres (“CAFs”) and authorised professionals a scanned copy (image) of the proxy to access the signed pre-filled tax return form and a copy of the necessary documentation, together with a copy of their identity document. If necessary, instead of signing the proxy, taxpayers can provide the CAF or qualified professional with a specific authorisation using electronic means that can prove their origin.
Possibility to transfer/receive a discount for tax deductions and credits: in addition to the possibility to opt for a discount or, alternatively, to transfer the relative tax credit instead of directly using the 110% deduction for the ‘ecobonus’, until 31 December 2021, beneficiaries of the tax credits introduced to deal with the Covid-19 epidemiological emergency (rent, sanitisation, adapting workplaces) may also opt, rather than using them directly, to transfer said credits, even only partially, to others, who may in turn also use the transferred credit for offsetting purposes.
Tax credit for ads and advertising campaigns in newspapers and periodicals: the expenditure limit for the calculation of the 50% tax credit for expenses incurred in 2020 for ads and advertising campaigns in newspapers and periodicals (also online) or on local TV and radio stations (digital and analogue), has been increased from € 60 million to € 85 million.
Relief for publishers: the relief for publishers of newspapers and periodicals enrolled with the official register of communications operators has been extended; the incentive (in the form of a tax credit) for the purchase of used paper to print newspapers will increase from 8% to 10% in 2020, on an extraordinary basis. The maximum expenditure limit for the calculation of the relative amount has also been increased, from € 24 million to € 30 million.
In addition, the flat-rate yield, which reduces the VAT tax base, has been increased from 80% to 95%, for the sale of newspapers, periodicals and related supplementary media.
Find out more
- Consult the COVID-19 EMERGENCY section. All the measures to support Italy's health service and economy
- Health and Civil Protection
- The measures introduced by the Italian government to support work
- Liquidity support for households, businesses and local authorities
- The measures introduced by the Italian government to support families
- Support for businesses and the economy