A “liquidity decree” (released 8 April 2020) includes measures that are intended to assist businesses by providing loan guarantees, government assumption of non-market risks, and certain targeted tax relief.
The tax relief measures allow for the deferral of remittances of withholding tax on the salary and wages paid to employees and workers; of employment taxes including social security and welfare contributions; and payments of value added tax (VAT).
Payments due during the months of April and May 2020 can be deferred by “eligible taxpayers” if paid by 30 June 2020 (either paid in a lump sum or in five installments beginning from June 2020) without being subject to interest or penalty assessments. Eligible taxpayers are those businesses with:
For businesses with a tax residence, registered office or place of business in certain provinces in northern Italy (Bergamo, Brescia, Cremona, Lodi or Piacenza), the deferral of VAT payments for April and May 2020 is subject to one condition only—the businesses must have suffered a decline in turnover of at least 33% (irrespective of revenues).
Other tax relief provisions concern:
Read an April 2020 report [PDF 162 KB] prepared by the KPMG member firm in Italy
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