Italy: New energy tax; Ukraine-related tax relief measures

Special charge for 2022 to be paid by producers, importers and sellers of electricity, gas, and petroleum products that realize “windfall gains”

Special charge for 2022 to be paid by producers, importers and sellers

New rules have been introduced by Decree Law no. 21 of 21 March 2022, which sets out "urgent measures to tackle the economic and humanitarian effects of the Ukraine crisis." Published in the official gazette no. 67 of 21 March 2022, the decree came into effect the following day.

The decree will have to be converted into law within 60 days of its publication and may undergo changes during its conversion.

Energy tax measures

A law decree introduces a special charge for 2022 to be paid by producers, importers and sellers of electricity, gas, and petroleum products that realize “windfall gains” in the energy sector. More specifically, the charge must be paid by operators in Italy that, for onward sale, produce electricity; operators that produce methane or extract natural gas; operators that market electricity, methane and natural gas; and operators that produce, distribute and sell petroleum products.

Ukraine tax-relief measures

In addition, the law decree introduces tax-related measures to address the economic and humanitarian effects of the Ukraine crisis, including: 

  • Private firms may gift petrol vouchers to their employees up to an amount of €200 per employee (on top of the current threshold), and such vouchers are not included in the employees’ taxable income.
  • Businesses that have 16.5 kW or 16.5 kW+ electricity meters (other than businesses classed as big energy consumers) are granted a special subsidy in the form of a tax credit equal to 12% of the price of electricity actually consumed in the second quarter of 2022, as evidenced by purchase invoices. It can be claimed if the average price per kWh of electricity in the first quarter of 2022, net of taxes and subsidies, has risen by more than 30% of the corresponding average price in the first quarter of 2019.
  • Businesses purchasing natural gas (other than big consumers of gas) are granted a special subsidy in the form of a tax credit equal to 20% of the price of gas consumed in the second calendar quarter of 2022 for uses other than thermoelectric ones. The tax credit is available if the benchmark price of natural gas—calculated as the average daily market price in the first quarter of 2022, as published by GestoreMercatiEnergetici (GME), has risen by more than 30% of the corresponding average price in the first quarter of 2019.
  • The special subsidies introduced at the beginning of March 2022 for “big consumers” of electricity and big consumers of natural gas in the form of a 20% and 15% tax credits, respectively, are increased to 25% and 20%. The tax credits granted to big consumers of electricity and gas can be used up to 31 December 2022 or, but only in full, transferred.
  • Certain business offering tourist accommodation (agritourism enterprises, operators of outdoor facilities, businesses operating in the trade-fair and conference sector, spas and theme parks, including water parks and wildlife parks) are granted a tax credit equal to 50% of the second installment of 2021 municipal property tax (IMU) paid for properties listed as Class D2 in the Property Register and used as accommodation, provided that the owners also manage the businesses and in the second half of 2021 suffered a fall in turnover or in fees of at least 50%, compared with the same period in 2019.

Read a March 2022 report [PDF 268 KB] prepared by the KPMG member firm in Italy

 

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