Italy: Update on Tax support measures

1. What are the tax support measures available to businesses in the entire Italian territory?

Suspension of Taxes and Penalties Arising from Tax Assessments1:

Payments of tax and penalties falling due between 8 March and 31 May 2020 arising out of tax assessments issued by the Italian Tax Authorities, the National Social Security Agency (INPS), the Italian Customs Agency and by Regional and Local Authorities, and any other enforcement claims aimed at collecting tax revenues, must be made in a single instalment by 30 June 2020. Payments made before the issuance of the Decree cannot be reimbursed to the taxpayer.

The deadline for paying any installments due under the so-called “rottamazione-ter”2 and “saldo e stralcio3” (i.e. an instalment plans approved by the Italian Tax Authorities upon settlement4) is postponed until 31 May 2020.

The communications of ineligibility (“comunicazioni di inesigibilità5”) relating to the instalments managed by the Revenue Collecting Agent for years 2018, 2019 and 2020 shall be respectively submitted by the Revenue Collecting Agent within 31 December 2023, 31 December 2024 and 31 December 2025.

Measures to Encourage Workplace Sanitation6:

COVID-19:
Update on Law Decree No. 18 of 17 March 2020 Tax support measures

Persons engaged in a business, craft or professional activity are entitled to a tax credit of 50 per cent of the expenses incurred, in fiscal year 2020, for the workplace sanitation, up to a maximum amount of EUR 20,000.

The tax credit aims at encouraging workplace sanitation as a preventive measure to contain the spread of COVID-19.

The overall expenditure cap for fiscal year 2020 is EUR 50 million.

Within 30 days of the date of entry into force of the Decree, the Ministry of Economic Development and the Ministry of Economy and Finance will issue a joint decree to implement this measure.

1 Art. 65 of the Decree.
2 Pursuant to Articles 3 and 5 of the Law Decree No. 119 of 23 October 2018 and Law Decree No. 34 of 30 April 2019. 3 Pursuant to Article 1(190) Law. No. 145 of 30 December 2018
4 Pursuant to Articles 3 and 5 of the Law Decree No. 119 of 23 October 2018 and Law Decree No. 34 of 30 April 2019. 5 Art. 19 Legislative Decree No. 112 del 1999.
6 Art. 64 of the Decree.

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Measures to Support Businesses Not Engaged in the Tourism Sector - Suspension of Payments Related to Withholding Taxes, Social Security Contributions and Insurance Premiums for Mandatory Insurance Policies7

For the physical and legal persons active in the industries listed below, the withholding taxes payments on employment income, social security contributions and mandatory insurance premium falling due between 2 March 2020 and 30 April 2020 are suspended until 30 April 2020:

  1. a) National sports federations, sports promotion entities professional and amateur sports associations and clubs, and stadia, sports facilities, gyms, clubs and structures for dance, fitness and bodybuilding, sports centres, swimming pools and swimming centres;

  2. b) theatres, concert halls, cinemas, including ticketing services and support activities for artistic performances, night-clubs, game rooms and billiards;

  3. c) lottery offices, lotteries, bets, including the management of related machines;

  4. d) fairs and events (including those of an artistic, cultural, recreational, sporting and religious nature)

    promoters;

  5. e) restaurant, catering, ice cream shops, patisseries, bars and pubs;

  6. f) museums, libraries, archives, historical places and monuments and similar places, botanical gardens, zoos and nature reserves;

  7. g) nursery schools and day care services for disabled children, educational services for children as well as first and second degree educational services, professional training courses, sailing, navigation and flight schools, which issue patents or commercial licenses, schools of professional guide for drivers;

  8. h) non-residential social assistance activities for the elders and disabled;

  9. i) spa (Law No. 323 of 24 October 2000) and wellness centres;

  10. j) amusement parks or theme parks;

  11. k) bus, railway, underground, sea or airport stations;

  12. l) land, air, sea, river, lake and lagoon freight and passenger transport services, including the management of funiculars, cableway, funicular, chair-lifts and ski-lifts;

  13. m) lease of (land, sea, river, lake and lagoon) transport vehicles;

  14. n) rental of sports and recreational equipment or structures and equipment for events and shows;

  15. o) driving and tourist assistance services;

  16. p) registered non-profit organizations (ONLUS; Article 10 of the Legislative Decree No. 460 of the 4 December 1997), service organizations registered in the Regional register and of the autonomous provinces (Law No. 266 of the 11 August 1991), social promotion associations registered in the national, regional and autonomous provinces of Trento and Bolzano registers (Article 7 of the Law No. 383 of 7 December 2000) which performs, exclusively or principally, activities of general interest (Article 5, par. 1 of the Legislative Decree No. 117 of the 3 July 2017).

For the above mentioned persons, the Decree also suspends the VAT payment deadline set for March 2020.

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