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Tax credit for investors

date: 09.10.2020
Area: Tax

If certain conditions are met, paragraph 4 of article 26 of the “Rilancio” Decree provides for a tax credit equal to 20% of the amount of the contribution to one or more of the aforesaid joint-stock companies that suffered an overall reduction in revenues as a result of the Covid-19 emergency in the months of March and April 2020, compared to the same period in 2019. The reduction must be no less than 33% for persons (natural and legal persons) who make contributions in cash between 20 May 2020 and 31 December 2020; the maximum investment on which to calculate the tax credit may not exceed 2 million euros.

Articles 2, 3 and 4 of the “Rilancio” Decree respectively define the scope, recognition procedure and rules for the use of the tax credit for investors:

  • For the purposes of recognition of the tax credit, the capital increase must be subscribed and paid in by 31 December 2020 and investors must undertake to hold the shareholding in the company until 31 December 2023 (the distribution of reserves before that date by the transferee company entails forfeiture of the benefit and the obligation to return the credit together with the legal interest);
  • Companies in a relationship of control or connection with the transferee are not eligible for the tax credit;
  • In the event of indirect contribution, through units or shares in Undertakings for Collective Investment in Savings Banks (UCITS), the latter must be resident in Italy or in EU/EEA Member States and invest more than 50% in the share capital of the companies that can benefit from the capital strengthening facilities;
  • Investors and UCITS wishing to use the tax credit must file a specific application to the Tax Office, within the terms and in the manner defined by the Director of the Tax Office;
  • The tax credit may be used in the tax return relating to the tax period in which the investment is made and in subsequent tax returns, until such time as the use of the credit is completed and, from the tenth day following the day of filing of the return relating to the tax period in which the investment is made, also as offsetting (with an F24 form to be filed exclusively online using the services of the Tax Office);
  • The tax credit does not contribute to the formation of income for income tax purposes and production value for IRAP purposes.

Tax credit for investors

date: 09.10.2020
Area: Tax

If certain conditions are met, paragraph 4 of article 26 of the “Rilancio” Decree provides for a tax credit equal to 20% of the amount of the contribution to one or more of the aforesaid joint-stock companies that suffered an overall reduction in revenues as a result of the Covid-19 emergency in the months of March and April 2020, compared to the same period in 2019. The reduction must be no less than 33% for persons (natural and legal persons) who make contributions in cash between 20 May 2020 and 31 December 2020; the maximum investment on which to calculate the tax credit may not exceed 2 million euros.

Articles 2, 3 and 4 of the “Rilancio” Decree respectively define the scope, recognition procedure and rules for the use of the tax credit for investors:

  • For the purposes of recognition of the tax credit, the capital increase must be subscribed and paid in by 31 December 2020 and investors must undertake to hold the shareholding in the company until 31 December 2023 (the distribution of reserves before that date by the transferee company entails forfeiture of the benefit and the obligation to return the credit together with the legal interest);
  • Companies in a relationship of control or connection with the transferee are not eligible for the tax credit;
  • In the event of indirect contribution, through units or shares in Undertakings for Collective Investment in Savings Banks (UCITS), the latter must be resident in Italy or in EU/EEA Member States and invest more than 50% in the share capital of the companies that can benefit from the capital strengthening facilities;
  • Investors and UCITS wishing to use the tax credit must file a specific application to the Tax Office, within the terms and in the manner defined by the Director of the Tax Office;
  • The tax credit may be used in the tax return relating to the tax period in which the investment is made and in subsequent tax returns, until such time as the use of the credit is completed and, from the tenth day following the day of filing of the return relating to the tax period in which the investment is made, also as offsetting (with an F24 form to be filed exclusively online using the services of the Tax Office);
  • The tax credit does not contribute to the formation of income for income tax purposes and production value for IRAP purposes.