In brief
In the late evening of 19 May 2020 Italian Government enacted Law Decree n. 34 (so-called “Rilancio Decree“) in order to boost Italian’s economy. The Decree came into force on May 19 and has to be converted into ordinary law within 60 days, any amendments may occur during the conversion process. This alert focuses on the main tax provisions introduced by the Decree, while tax incentive and tax litigation measures are explored in separate Alerts.
Contents
- IRAP payments – Article 24
- Extension of the delivery period for new tangible assets subject to the enhanced depreciation – Article 50
- Reapiling of VAT and excise duties safeguard clauses – Article 123
- VAT rate reduction for supplies of medical devices and personal protective equipment for Covid-19 epidemiological emergency – Article 124
- Deferral of the plastic tax and sugar tax – Article 133
- Revaluation of lands and unlisted shares and quotas – Article 137
- Electronically storage and transmission daily data considerations – Article 140
- Deferral of automated clearance procedure of stamp duty on electronic invoices – Article 143
- Increase of the yearly cap of tax credit which can be offset through F24 form – Article 147
- Recovery procedure for undue payment of social security benefits and salaries subject to withholding tax – Article 150
- Municipality tax exemptions for tourism sector- Article 177
IRAP payments – Article 24
Payments of (i) IRAP balance referred to the fiscal year in course as of 31 December 2019 (advance payments, if any, are still due) and (ii) the first installment of the advance IRAP payment referred to the fiscal year following the one in course as of 31 December 2019 are not due.This provision is subject to the limitations and conditions provided by the Communication issued by the European Commission “Temporary Framework for State aid measures to support the economy in the current COVID-19 outbreak” and applies to taxpayers carrying out business and self-employment activities having, in the fiscal year in course as of 31 December 2019, revenues or fees not exceeding 250 million euro, with the exclusion of:
- bank and other financial intermediaries, financial and non-financial holding companies;
- insurance companies;
- public administrations;
- individuals, non-business partnership, entities and companies operating in the agricultural sector.
Extension of the delivery period for new tangible assets subject to the enhanced depreciation – Article 50
Due to COVID-19 outbreak, the terms for the delivery of tangible assets eligible to benefit from the 2019 enhanced depreciation, according to article 1 of the Law Decree of 30 April 2019 no. 34, is postponed to 31 December 2020.
Reapiling of VAT and excise duties safeguard clauses – Article 123
The so-called “safeguard clauses” which provide for the automatic increase of VAT rates and excise duties on certain fuels as of 1 January 2021 are repealed.
VAT rate reduction for supplies of medical devices and personal protective equipment for Covid-19 epidemiological emergency – Article 124
Until 31 December 2020, transfer of medical devices and personal protective equipments for COVID-19 are VAT exempt with no limitation on input VAT deduction.Starting from 1 January 2021, such transfers will be subject to 5% VAT rate.
Deferral of the plastic tax and sugar tax – Article 133
The application of plastic tax and sugar tax is deferred to 1 January 2021.
Revaluation of lands and unlisted shares and quotas – Article 137
Taxpayers can opt for the revaluation of lands and unlisted shares and quotas held as of 1 July 2020 by paying an 11% substitutive tax by 30 September 2020 in its full amount or in three equal yearly instalments (interest at 3% applies).
Electronically storage and transmission daily data considerations – Article 140
Penalties related to the violation of the VAT obligations to electronically storage and transmission daily data considerations will not apply until 1 January 2021.
Deferral of automated clearance procedure of stamp duty on electronic invoices – Article 143
The automated procedure according to which Italian Tax Authority applies stamp duty on electronic invoices sent through the Interchange System, will apply to invoices filed starting from 1 January 2021.
Increase of the yearly cap of tax credit which can be offset through F24 form – Article 147
For fiscal year 2020, the yearly cap of tax and social security credits that can be offset through F24 form against other tax or social security liabilities is increased to 1 million euro (previously 700,000 euro).
Recovery procedure for undue payment of social security benefits and salaries subject to withholding tax – Article 150
In case of repayment of social security benefits and salaries subject to withholding tax:
- taxpayer shall reimburse an amount equal to the income received net of any withholding tax levied at source;
- a tax credit is granted to the withholding tax agent equal to 30% of the amounts received, which can be offset against other tax and social security liabilities.
These provisions shall apply to sums reimbursed starting from 1 January 2020.
Municipality tax exemptions for tourism sector- Article 177
For 2020, the first Municipality tax (IMU) instalment is not due with respect to:
- buildings used for bathing and SPA;
- properties in cadastral category D/2 and properties of farmhouses, holiday villages, hostels, mountain huts, sea and mountain colonies, short-stay rooms, holiday homes and apartments, bed& breakfast, residences and campsites, provided that the owners of the properties are also managers of the relevant activities.
