Decree Law no. 41 of 22 March 2021 "Urgent measures concerning support to businesses and economic players, work, healthcare and territorial services in connection with the COVID-19 emergency"
Decree Law no. 41 of 22 March 2021, Decreto Sostegni
Decree Law no. 41 of 22 March 2021, introducing
"Urgent measures concerning support to businesses and economic players, work, healthcare and territorial services in connection with the COVID-19 emergency" – "Decreto Sostegni" - was published in Italian Official Journal no. 70 of 22 March 2021 and entered into force on 23 March 2021.
We summarize below the main tax measures introduced by the decree.
Article 1
NON-REFUNDABLE GRANT TO ECONOMIC PLAYERS AND EXTENDED DEADLINE FOR FILING THE PRE-COMPLETED VAT RETURN
The Decree introduced a non-refundable grant for economic players.
ELIGIBLE TAXPAYERS
1. VAT registered taxpayers are resident or established in Italy, who carry out a business or a profession or earn income from farming activities (referred to in article 32 of the Italian Income Tax Code) and whose revenue or fees did not exceed 10 million Euro in 2019;
2. Start-up companies;
3. Non-commercial entities, including third-sector entities and civilly recognized religious bodies, with regard to the commercial activities carried out by them.
IMPORTANT:
Persons whose activity ceased on 23 March 2021, who registered for VAT after 23 March 2021, the public bodies referred to in article 74 of the Italian Income Tax Code and the persons referred to in article 162-bis of the Italian Income Tax Code (i.e., financial intermediaries and holding companies) are not eligible for the grant.
AVAILABLE BENEFIT
The non-refundable grant is determined by applying one of the following percentages to the difference between the average monthly turnover (or fees) for 2020 and the average monthly turnover (or fees) for 2019:
✓ 60% for entities whose revenue or fees do not exceed Euro 100,000;
✓ 50% for entities with revenue or fees higher than Euro 100,000 and up to Euro 400,000;
✓ 40% for entities with revenue or fees higher than Euro 400,000 and up to Euro 1 million;
✓ 30% for entities with revenue or fees higher than Euro 1,000,000 and up to Euro 5,000,000;
✓ 20% for entities with revenue or fees higher than Euro 5,000,000 and up to Euro 10,000,000.
