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Italy: Tax measures in Budget Law 2019

Italy: Tax measures in Budget Law 2019

Changes to Italy’s corporate income tax (IRES) and regional tax (IRAP) were enacted by Law no. 145 of 30 December 2018 (the Budget Law 2019). Among the tax measures in the Budget Law 2019—effective 1 January 2019—are the following items:


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  • Extension of the “hyper” or bonus depreciation allowed certain tangible and intangible assets
  • Amendments to the research and development (R&D) tax credit
  • Repeal of the notional interest deduction
  • Lower corporate income tax rate for profits reinvested in the acquisition of income-producing assets and/or in job creation
  • Rules for registration of transactions subject to the registration tax
  • An extension of the step-up tax basis for land and unlisted shares, with the “step-up” subject to a substitute tax
  • Postponed application of the deduction of write-downs of receivables and losses on receivables
  • Deductible losses on customer receivables realized on initial adoption of IFRS 9


Read a January 2019 report [PDF 201 KB] prepared by the KPMG member firm in Italy

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