The Italian Parliament approved the Budget Law on 23rd December 2017 and it will come into force on 1st January 2018. The law prolongs the extra-amortization regime for entities investing in new assets between 1st January 2018 and 31st January 2018 decreases the additional applicable depreciation from 40% to 30% but it is not applicable to specific motor vehicles mentioned in the amending provisions.
The Budget Law outlines:
- Providing a tax-credit of 40% on personnel expenses for training activities related to the Industry 4.0 development plan.
- Reduction the corporate tax by 3.5% since coming into effect from the fiscal year 2017 and also providing a 3.5% surcharge for banks and financial entities.
- Cancellation of the last provision of law that deals with the possibility of Gross Operating Profit
(ROL) for an amount equivalent to the dividend relating to non-resident subsidiaries.
- Recognizing a tax credit equal to 50% for the advisory expenses up to 500 million Euros maximum, incurred until 31st The credit shall be indicated in the tax return related to the fiscal year of tax credit’s maturity and the following years until complete absorption.
- Identifying the correct applicable tax treatment based on the nature each single deed to be registered and regardless of interpretative elements or the contents included in the other legal transactions which might be related to the one to be registered.
