News - Relaunch Decree
- Studio Piceci
- May 26, 2020
- Reading time: 5 min
News - tax measures of the so-called Relaunch Decree
Subject: Decree-Law No. 34 of May 19, 2020
To conclude the News the so-called Relaunch Decree, this circular reports the main tax measures contained in the legislation in question, including the further extension of tax and social security contributions suspended as a result of the COVID-19 epidemiological emergency.
Title VI: Tax measures (Articles 119-164)
FURTHER EXTENSION OF SUSPENDED PAYMENTS FOR MARCH, APRIL, AND MAY (Articles 126–127)
The so-called Relaunch Decree extended and standardized the terms of payments suspended by previous decrees - the Cura Italia Decree with regard to the suspension of March payments and the Liquidity Decree for those relating to April and May.
The payments subject to suspension relating to withholding taxes on income from employment and similar income, social security and welfare contributions, compulsory insurance premiums, and VAT payments shall be made, without the application of penalties and interest, in a single installment by September 16, 2020; or in up to four equal monthly installments, with the first installment to be paid by September 16, 2020.
Below are the deadlines, broken down by month, with an indication of the recipients, the subject of the suspension, the suspended period, and the new, now standardized payment date.
DEADLINE FOR PAYMENTS RELATING TO MARCH, APRIL, AND MAY 2020
TAX CREDIT FOR THE ADAPTATION OF WORKPLACES IN PLACES OPEN TO THE PUBLIC (ART. 120)
Entities engaged in business, art, or professional activities in places open to the public, associations, foundations, and other private entities, including third sector entities, are granted a tax credit equal to 60% of the expenses incurred in 2020, up to a maximum of €80,000, in relation to the measures necessary to comply with health requirements and containment measures against the spread of the COVID-19 virus, including the construction work necessary to:
the renovation of changing rooms and canteens;
the creation of medical areas, entrances, 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 necessary for carrying out work activities; the purchase of equipment for monitoring the temperature of employees and users.
The tax credit can be combined with other benefits for the same expenses, up to the limit of the costs incurred, and can be used in 2021 exclusively as compensation.
The Director of the Revenue Agency will issue a provision 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)
Businesses, artists, professionals, non-commercial entities, including third sector entities and civilly recognized religious entities, are eligible for a tax credit equal to 60% of the expenses incurred in 2020 for the sanitization of environments and tools used, as well as for the purchase of PPE and other devices designed to ensure the health of workers.
The credit is available up to a limit of €60,000 for each beneficiary, within the limit of €200 million for the year 2020.
Expenses incurred up to December 31, 2020, relating to the following are eligible for generating credit:
the sanitization of the environments in which the aforementioned individuals carry out their work and institutional activities and of the tools used in the context of these activities;
the purchase of personal protective equipment, such as masks, gloves, visors, and protective eyewear, protective suits, and footwear, which comply with the essential safety requirements set forth in European legislation; - the purchase of cleaning and disinfectant products;