The Italian Revenue Agency has outlined new repayment procedures for SMEs that previously claimed R&D tax credits but now wish to switch to the patent box incentive scheme for the same software development activities, clarifying timing requirements and IRAP treatment in response to 102/2026. 

RF Report

The Italian Revenue Agency has issued guidance on 3 April 2026, clarifying how small and medium-sized enterprises must handle R&D tax credit repayments when switching to the new patent box incentive scheme.

In Response Number 102/2026, the Agency addressed questions from a digital sector company that previously claimed research and development tax credits under Article 3 of Legislative Decree 145/2013 for software development. The company now wants to benefit from the patent box relief for the same activities through the 2026 tax return covering 2025 income.

The Agency confirmed that companies must repay previously claimed R&D credits through the F24 form, using identical tax codes and reference years as the original offset. The repayment obligation begins in the tax period when the software is registered with SIAE (the Italian public registry), regardless of whether the company reports taxable income or a loss that year.

Copyrighted software qualifies for the 110% patent box incentive if it demonstrates originality and creativity. Unlike traditional industrial property rights, software must be registered with SIAE or an equivalent body to access benefits. Companies cannot claim both R&D credits and patent box relief for the same development costs, triggering the repayment requirement.

The Agency addressed a critical concern about IRAP (regional business tax), which does not permit carrying forward negative values to future years. Despite this limitation potentially making portions of the patent box benefit unusable, companies must still repay the full R&D credit amount, including the component related to IRAP reductions.

This means businesses face repayment obligations even when they cannot fully utilise the offsetting patent box benefits due to IRAP’s structural limitations and insufficient taxable base during the registration period.