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Italy: Tax relief measures for individuals, family businesses in “Relaunch decree” (COVID-19)

Italy: Tax relief measures for individuals

Measures in Law Decree no. 24 of 19 May 2020—referred to in English as the “Relaunch decree” and provided in response to the coronavirus (COVID-19) pandemic—included tax relief provisions for individual taxpayers and their businesses.


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  • One measure would allow another opportunity to step up the tax basis (purchase cost) of land and equity investments (those not traded in regulated markets) held by individuals, partnerships, and non-commercial entities. This allows a step-up of the tax basis of assets held on 1 July 2020, as well as assets held on 1 January 2020 (this earlier step-up opportunity was introduced by the 2020 Budget Law). For assets owned on 1 July 2020, the deadline for the preparation and certification of the appraisal plus payment of the substitute tax (or at least the first instalment) is 30 September 2020.
  • Another measure would allow 20% of cash contributions made to increase share capital to be claimed as a tax credit by investors. This mechanism is available for investments in joint-stock companies, limited partnerships, limited liability companies, and cooperatives (societàper azioni, in accomanditaper azioni, a responsabilitàlimitata and società cooperative) that have registered offices in Italy, provided that certain conditions are satisfied.
  • The 2020 Budget Law (Law no. 160/2019) extended the scope of application of the wealth tax on foreign financial assets for certain foreign resident organisations that hold financial assets abroad. The Relaunch decree includes a provision that modifies application of the wealth tax on the foreign financial assets of these non-individuals.
  • A measure allows the filing of the annual “730 tax returns” by workers through their employers, without a withholding agent. Tax refunds for tax year 2019 are to be paid by the tax agency after the deadline for filing 730 returns (that is, 30 September 2020).

The Relaunch decree was published in the official gazette no. 128 of 19 May 2020. The Relaunch decree must be converted into law within 60 days of its publication in the official gazette, and it is possible that amendments could be made during this parliamentary conversion process.

Read a June 2020 report [PDF 162 KB] prepared by the KPMG member firm in Italy

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