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Main financial and tax measures introduced by the so–called “Relaunch Decree” - Law Decree of May 19, 2020, no. 34

  • Italy
  • General


On May 13, 2020, the Italian Government approved the so called “Relaunch Decree” (Law Decree no. 34, entered into force as of May 19, 2020), mainly aimed at financially supporting companies in difficulty due to COVID-19 health emergency.

The Relaunch Decree intervenes in different areas, in a transversal way, with the aim of ensuring the unity and the completeness of the measures aimed at protecting families and workers, safeguarding and supporting companies and persons to the consolidation, streamlining and speeding up of protection and social cohesion.

The Relaunch Decree must be converted into law within 60 days from the date of its publication in the Italian Official Gazette. It is immediately effective, but some amendments may intervene before its conversion into law.

Please find below a brief analysis of the main financial and tax measures adopted.

Art. 24 – IRAP payments


Companies with a turnover lower than Euro 250 million are not required to pay the FY2019 balance and the FY2020 first advance payment.


Art. 25 – Non- repayable grant

A non-repayable grant is provided to companies with FY2019 revenue not exceeding Euro 5 million, provided that April 2020’s turnover is lower than two thirds of that of April 2019.

Such a grant is determined on the difference between the turnover of April 2020 and that of April 2019, to the extent of:

  • 20% for entities with revenue up to Euro 400,000 in FY2019;
  • 15% for entities with revenue higher than Euro 400,000 and up to Euro 1 million in FY2019;
  • 10% for entities with revenue higher than Euro 1 million and up to Euro 5 million in FY2019.


Art. 26 – Equity strengthening of medium-sized companies


A tax credit, equal to 20% of the capital injection and within the limit of Euro 2 million, is granted to any natural and legal person – different from controlling, controlled and/or associated companies - who makes capital injection in favor of medium-sized companies:

  • with revenue referring to FY2019 between Euro 5 million and Euro 50 million,
  • which suffered in March and April 2020 a drop in turnover of more than 33% compared to the two months of 2019,
  • which approved after May 19, 2020 a capital injection, entirely paid.


A further tax credit, equal to 50% of the operating losses referring to FY2020 exceeding 10% of the net equity, within the limit of 30% of the capital injection, is granted to the injected companies.


Art. 27 – Special Purpose Assets


For joint-stock companies with headquarters in Italy and with a turnover higher than Euro 50 million, Cassa Depositi e Prestiti (“Cdp”) will constitute a Special Purpose Assets to support and relaunch the Italian economic production system, by means of which Cdp can make any form of investment (as long as it is temporary), including inter alia:

  • underwriting of convertible bonds;
  • participation in capital injections;
  • purchasing of shares listed on the secondary market in the case of strategic transactions.


Art. 28 – Tax credit for

lease payments

A tax credit equal to 60% of the monthly rent, leasing or concession of properties for non-residential use (intended for the carrying-out of industrial, commercial, agricultural, tourism-related activities), is provided in favor of companies with revenue not exceeding Euro 5 million in 2019.


Art. 35 – SACE

guarantee in favor

of commercial credit

insurance companies

SACE S.p.A. grants in favor of short-term commercial credit insurance companies a guarantee equal to 90% of the indemnities generated by the exposures relating to commercial credits accrued from May 19, 2020 to December 31, 2020 and within the limit of Euro 2,000 million.


Art. 38 – Strengthening

of the innovative

start-ups system

The Venture Capital Support Fund is increased with additional resources of Euro 200 million for 2020, the SME Guarantee Fund is increased with an additional amount equal to Euro 200 million, reserved for innovative start-ups and the start-ups support tool Smart & Start Italia is refinanced with further Euro 100 million.

A tax deduction of 50% for IRPEF purposes of the amount invested in the share capital of one or more start-ups or innovative SMEs is provided; the deductible investment, in each FY, cannot exceed Euro 100,000 and shall be maintained for at  least 3 years.


Art. 53 – Art. 60 –

Various provisions on State Aids

A new State Aid regime is provided, through direct grants, guarantees, loans at favorable interest rate, and forms of support for companies engaged in research and development and production of products related to COVID-19 and for workers affected by the health emergency.


Art. 119 – Tax incentives for energy efficiency, bonus earthquake, photovoltaic and charging stations for electric vehicles


The deduction rate due for specific energy requalification interventions, earthquake risk reduction, installation of photovoltaic systems and installation of columns for charging electric vehicles has increased to 110% as long as the costs are incurred between  July 1, 2020 and December 31, 2020. The incentive must be divided into five equal installments.

In place of the deduction, taxpayers can opt for a contribution of the same amount in the form of an advance discount from the supplier or for the transformation into a tax credit, with the possibility of transfer to third parties.


Art. 120 - Tax credit

for the expenses for

complying with health

requirements to work

environments open to

the public


For entities carrying out business in places open to the public (e.g. bars, restaurants, museums, etc.), it is provided for a tax credit equal to 60% of the expenses aimed at complying with health requirements and containment measures against dissemination of COVID-19, up to the maximum amount of Euro 80,000.

Art. 121 –

Transformation of tax

deductions in discount

on the amount due and

in transferable tax credit

The provision introduces the possibility for whom is entitled to specific tax deductions, to opt, alternatively, for a contribution of the same amount, in the form of a discount on the consideration due, advanced by the supplier who carried out the interventions, and recovered by the latter in the form of a tax credit or, for the transformation of the corresponding amount of the tax credit deduction to be used also in off - set, with the option also of subsequent transfer to other entities, including credit institutions and other financial intermediaries.


Art.122 - Transfer of tax credits recognized by measures issued to deal with the emergency from COVID-19

It is introduced, until December  31, 2021, the possibility for beneficiaries of tax credits introduced to deal with the epidemiological emergency from COVID-19 to opt, instead of using them directly, for the transfer, even partial, of the same tax credit to other entities, including credit institutions and other financial intermediaries.


Art. 124 - Reduction of VAT rate for the supply of goods necessary for the containment and management of the epidemiological emergency from COVID-19

Until December 31, 2020, the sale of masks and other medical devices for personal protection is VAT exempt.

From 1 January 2021, the reduced rate of 5% is applied.

Art. 126 - Extension of the terms for collection of suspended payments

It is extended the deadline for the collection of payments relating to withholding taxes on employee and similar income, withholding taxes relating to the regional and municipal tax, value added tax and social security and welfare contributions, as well as premiums for compulsory insurance, already suspended for the months of April 2020 and May 2020. The aforementioned payments have to be made in a single payment by September 16, 2020 (instead of June 30, 2020) or in a maximum of four equal monthly installments, with the payment of the first installment by September 16, 2020.


Art. 129, Art. 130, Art. 131, Art. 132 and Art. 162 – Various provisions on excise duty

It is allowed a reduction in the monthly instalments of the excise duty on natural gas and electricity, to be paid in the period from May 2020 to September 2020, providing that they are paid to the extent of 90% of those calculated on the basis of the consumption of the previous year.

Moreover, for the months of April, May, June, July and August 2020, the entities obliged to pay the excise duty on energy products can make, as a down payment, the aforementioned disbursement to the extent of 80% of the due sums.

It is provided for the holder of the tax deposit for energy and alcoholic products to pay the excise debt in instalments; the request provides for modulating the instalment payment request according to the different economic situations in which the operator is to be documented.


Art.133 - Deferral of the entry into force of the provisions on the tax on the consumption of single-use items and on the tax on the consumption of sweetened drinks



It is deferred to  January 1, 2021, the entry into force of the provisions establishing the tax on the consumption of single-use items (MACSI) and the tax on the consumption of sweetened drinks.


Art. 134 - Amendments to the IVAFE regulation for entities other than individuals

As of 2020, in addition to individuals, non-commercial entities and partnerships holding financial assets abroad are subject to IVAFE.


Art. 135 - Provisions relating tax justice

The deadlines for calculating the penalties to be imposed for total or partial delayed payment of the court fees (“contributo unificato”) are suspended from March 8, 2020 to May 31, 2020.

The procedures to be followed for the conduct of the distance hearing both public and in the board room are amended, allowing the use of the remote connection not only for procedural parties, but also for judges and administrative staff.


Art. 137 - Re-determination of the tax cost or the purchase value of unlisted equity investments and of lands


The possibility for individuals and non-commercial partnerships

 to re-determine the tax cost or the purchase value of unlisted equity investments and of the lands is reintroduced for that owned as of  July 1, 2020.

To opt for this regime, it is necessary that by September 30, 2020:

  • a chartered accountant draws up and asserts the appraisal of the participation or land;
  • the taxpayer pays the 11% substitute tax for its entire amount, or (in case of instalments) limited to the first of three equal annual instalments.


Art. 138 - Alignment of approval terms for TARI and IMU rates with the deadline for approval of the 2020 local public entities budget

The terms for the approval of TARI and IMU rates are aligned with the deadline for the approval of 2020 public entity budget, which is set for 2020 on July 31.


Art. 142 - Postponement of the processing service by the Tax Agency of the pre-filled drafts of the VAT documents

The processing service by Italian Tax Agency of pre-filled VAT registers, VAT quarterly communications and VAT yearly tax return is postponed to January 1, 2021.

Art. 143 - Postponement of the automatic procedure for the settlement of stamp duty on electronic invoices

The procedure for the settlement of stamp duty by Italian Tax Agency, on electronic invoices filed without fulfillment of stamp duty, is postponed from January 1, 2020 to  January 1, 2021.

Art. 144 - Relief of time expiration effects and payment suspension for tax due following Tax Agency automatic or formal inspections

Tax payments due following automatic or formal inspection, with deadline between 8 March 2020 and 19 May  2020 are not considered as expired. The same payments, due from May 20, 2020 and May 31, 2020 are suspended. All the mentioned payments could be provided in a single installment within September 16, 2020 or in 4 monthly equal installments starting from September 16, 2020.


Art. 145 - Suspension of offset between tax credits and tax debits registered with the Tax Collecting Agency

For 2020, in case of tax credit refund, it is suspended the offsetting of tax credits with tax debit registered with Tax Collecting Agency.

Art. 147 - Increase of the amount of tax credit available for refund or offset in the year 2020

For 2020, the limit of the amount of tax credit available for refund and tax debts offsetting is increased from Euro 700,000 to Euro 1 million.


Art. 148 - Changes regarding Synthetic Tax Reliability Indices


Synthetic Tax Reliability Indices (ISA) provisions are modified to fit with the economic situation caused by COVID-19; new exclusions are introduced.


Art. 149 - Suspension of tax due following settlement assessment, conciliation, modification and tax credit recovery

Payments due following settlement assessment, conciliation, modification and tax credit recovery, due from  March  8, until May 31, 2020 are postponed to September 16, 2020, in a single instalment or in 4 monthly equal instalments.


Art. 154 - Suspension of Tax Collecting Agency activities

The Relaunch Decree suspends until August 31, 2020 the activity of Tax Collecting Agency.

Art. 157 - Extension of the terms in order to encourage the gradual recovery of economic and social activities

Tax Agency’s notices of assessment expiring between   March 9, 2020 and December 31, 2020 shall be notified between  January 1, 2021 and December 31, 2021.


Art. 158 - The suspension of court terms and the suspension related to out-of-court negotiation procedure can be added


With reference to the out-of-court negotiation procedure, the suspension of 90 days provided by article 6, paragraph 3, of Legislative Decree 218/1997 is added to the suspension from March 9, 2020 to May 11, 2020 provided by “Cura Italia Decree” in connection with the terms related to the tax litigation.


This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full terms and conditions on our website.

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