On 30 April 2019, Italy publishes a decree regarding “urgent economic growth measures” (Decreto Crescita) which entered into force on 1 May 2019. Under the decree following tax incentives are introduced;
As an extra or bonus depreciation regime for certain tangible assets a benefit equal to 30% of the costs of investments in new tangible assets when purchased between 1 April 2019 and 31 December 2019, with the deadline extended to 30 June 2020 if at least 20% of the cost is paid in advance by the end of 2019; and subject to a cap of €2.5 million on eligible investments.
A reduced rate for reinvested profits from 24% to 22.5% for FY 2019 and further reduced to 20.5% for FY 2022, subject to conditions that profits are reinvested in the company and the net equity of the year exceeds that recorded in fiscal year 2018.
Increased the deductibility of local real estate tax (IMU) for corporate income tax purposes by 10% (40% to 50%) and the rate will be increased gradually to 70% by 2020. Taxpayers can access the patent box relief under the simplified approach by calculating the benefit themselves, instead of having to obtain a tax ruling from the tax authorities.
