Share with your friends

Italy: Tax ruling clarifies research and development (R&D) tax credit

Italy: Tax ruling clarifies R&D tax credit

A tax ruling (no. 58 of 2 November 2018) offers some clarification of research and development (R&D) investments made by foreign companies and specifically those that have R&D activities in Italy (or for those foreign companies that are considering establishing an R&D center in Italy).


Related content

The tax ruling addresses the treatment of R&D investments made in the three fiscal years before the year in progress on 31 December 2015. The tax ruling implicitly confirms that R&D expenses incurred when conducting research on behalf of a foreign company are within the scope of the R&D tax credit mechanism.


In Italy, a tax credit is available for Italian companies and Italian permanent establishments (PEs) of foreign companies investing in R&D from the fiscal year following the year that is in progress on 31 December 2014 and up to the fiscal year in progress on 31 December 2020.

Also, the 2019 budget bill includes changes to the R&D regime.


Read a November 2018 report [PDF 172 KB] prepared by the KPMG member firm in Italy

© 2020 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.

KPMG refers to the global organization or to one or more of the member firms of KPMG International Limited (“KPMG International”), each of which is a separate legal entity. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. For more detail about our structure please visit

Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal