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Italy restarts with the “Re-launching Decree”

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After the 25 billion euro package of measures of the “Cura Italia” Decree, the Government with the “Relaunch Decree” http://www.governo.it/ allocates another 155 billion to start Phase 2 of the Italian economy which will have to face the unprecedented crisis triggered by the Covid pandemic -19 and support the recovery of the country.

An extraordinary measure with which action is taken to strengthen the health and safety sectors, support businesses, income from work, tourism and culture. 

In particular, the decree introduces concrete and immediate measures to support businesses and other economic operators with a VAT number, including artisans, self-employed workers and professionals affected by the health emergency. Among the main measures:

A non-refundable contribution in favor of subjects carrying out business activities and self-employment, holders of VAT number, including companies carrying out agricultural or commercial activities, even if carried out in the form of a cooperative enterprise, with turnover in the last period of tax less than 5 million euros. The contribution is due if the amount of turnover and fees for April 2020 was less than two-thirds of the amount of turnover and fees for April 2019. For those who started the business from 1 January 2019, the contribution is due even in the absence of the requirement of the decrease in turnover/fees. The amount of the contribution is determined as a percentage of the difference found, as follows:

  • 20 percent for subjects with revenues or fees not exceeding four hundred thousand euros in the last tax period;
  • 15 percent for individuals with revenues or fees of more than four hundred thousand euros and up to one million euros in the last tax period;
  • 10 percent for individuals with revenues or fees in excess of one million euros and up to five million euros in the last tax period. The contribution will not contribute to the formation of the taxable base of income taxes and will be disbursed, in the second half of June, by the Revenue Agency through direct accreditation in a bank or postal current account in the name of the beneficiary;

The exemption from paying the IRAP balance due for 2019 and the first installment, equal to 40 percent, of the IRAP advance due for 2020 for companies with a volume of revenues of between 0 and 250 million and self-employed workers with a corresponding volume of compensation. The obligation to pay advances for the 2019 tax period remains valid;

For persons engaged in business, art or profession, who have suffered a decrease in turnover or fees of at least 50 percent in the months of March, April and May compared to the same month of the previous tax period, a tax credit of 60 percent of the monthly amount of the rent for properties for non-residential use intended for the industrial, commercial, artisanal, agricultural, tourist interest activities or for the habitual and professional exercise of the self-employment. The credit is due to subjects with revenues or fees not exceeding 5 million euros in the previous tax period. The hotels are responsible regardless of the volume of business recorded in the previous tax period. In the case of complex service contracts or company rental contracts, including at least one property for non-residential use intended for the industrial, commercial, artisanal, agricultural, tourist interest activities or for the habitual and professional exercise of the self-employment, the tax credit is 30% of the related fees. This tax credit can be used in the tax return relating to the tax period for the expenditure or in compensation, after the payment of the fees, and does not contribute to the formation of income for the purposes of income tax and the value of the production for the purposes of the regional tax on productive activities. It can be transferred to the lessor or to the grantor or to other subjects, including credit institutions and other financial intermediaries.

The full article is available at http://www.governo.it/

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