News 3 - Relaunch Decree
- May 27, 2020
- Reading time: 5 min
News 3 - Tax measures under the so-called “Relaunch Decree”
Subject: Decree-Law No. 34 of May 19, 2020
Following the conclusion of the “ News ” (tax briefings) on the so-called “Relaunch Decree,” this circular outlines the main tax measures contained in the relevant legislation, among which the further extension of the suspension of tax and social security contributions resulting from the COVID-19 public health emergency stands out.
Title VI: Tax Measures (Articles 119–164)
FURTHER EXTENSION OF SUSPENDED PAYMENTS FOR MARCH, APRIL, AND MAY (Art. 126–127)
The so-called “Relaunch Decree” extended and standardized the deadlines for payments that had been suspended by previous decrees—the “Cura Italia Decree” with regard to the suspension of March payments, and the “Liquidity Decree” with regard to those for April and May.
Payments subject to the suspension—including withholding taxes on income from employment and similar sources, social security and welfare contributions, premiums for mandatory insurance, and VAT payments—must be made in a single lump sum by September 16, 2020, without the application of penalties or interest; or in up to four equal monthly installments, with the first installment due by September 16, 2020.
Listed below, broken down by month, are the deadlines, along with the recipients, the reason for the suspension, the suspension period, and the new, standardized payment date.
DEADLINE FOR PAYMENTS FOR MARCH, APRIL, AND MAY 2020
TAX CREDIT FOR THE ADAPTATION OF WORKPLACES IN FACILITIES OPEN TO THE PUBLIC (ART. 120)
Individuals engaged in business, artistic, or professional activities in places open to the public, as well as associations, foundations, and other private entities—including third-sector organizations—are eligible for a tax credit equal to 60% of the expenses incurred in 2020, up to a maximum of €80,000, in connection with measures necessary to ensure compliance with health regulations and containment measures against the spread of the COVID-19 virus, including construction work necessary to:
the renovation of locker rooms and cafeterias;
the construction of medical facilities, entryways, and common areas;
the purchase of safety equipment;
as well as investments in innovative activities, including those necessary for innovative investments such as the development or purchase of tools and technologies required to carry out work activities; the purchase of equipment for monitoring the temperature of employees and users.
The tax credit may be combined with other tax incentives for the same expenses, provided that the total does not exceed the costs incurred, and may be used in 2021 exclusively as a tax offset.
The Director of the Revenue Agency will issue a directive establishing the procedures for monitoring the use of the tax credit.
TAX CREDIT FOR THE SANITIZATION OF WORKPLACES AND THE PURCHASE OF PERSONAL PROTECTIVE EQUIPMENT (hereinafter PPE) (ART. 125)
Individuals engaged in business, artistic, or professional activities, as well as non-commercial entities—including third-sector organizations and civilly recognized religious organizations—are eligible for a tax credit equal to 60% of the expenses incurred in 2020 for the sanitization of premises and equipment, as well as for the purchase of PPE and other devices designed to protect workers’ health.
The credit is available up to a limit of €60,000 per beneficiary, within a total limit of 200 million euros for the year 2020.
Expenses incurred through December 31, 2020, related to the following are eligible to generate tax credits:
the sanitization of the premises where the aforementioned individuals carry out their work and institutional activities, as well as the equipment used in the course of such activities;
the purchase of personal protective equipment, such as masks, gloves, face shields, and safety glasses, protective suits, and footwear, that comply with the essential safety requirements set forth in European regulations; - the purchase of cleaning and disinfectant products;
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