The tax measures of the “Relaunch Decree”: from non-refundable contributions to subsidies for home and energy savings. The handbook for citizens and businesses has been published.

The long-awaited Revenue Office’s ‘vademecum’ (PDF) has finally been published. It aims to illustrate all the main innovations introduced by Legislative Decree 34/2020 (the so-called ‘Relaunch Decree’), which provides for urgent measures in the area of public health, support for work and the economy, and social policies related to the COVID-19 emergency.

In particular, the ‘vademecum’ summarises all the updates related to taxes, with particular attention to incentives, allowances, and bonuses to help families and businesses cope with the challenges caused by the COVID-19 emergency.

We list below the main incentives, allowances, and bonuses provided by the Decree:

1) Incentive for workplace’ adaptation and sanitation

Businesses and self-employed workers who carry out their activities in places open to the public can take advantage of a tax credit. This credit equals to 60% of the costs incurred for compliance with public health requirements and measures to contain the spread of COVID-19, for the sanitization of the workplace and of work tools, and for the purchase of personal protection equipment (PPE) to guarantee the safety of workers and costumers.

2) Home bonus

The Decree establishes tax deductions for architectural heritage recovery, energy efficiency, seismic risk reduction and for the installation of photovoltaic systems and recharging infrastructures for electric vehicles, which increase to 110% of the costs incurred from 1st July 2020 to 31st December 2021.

Taxpayers will therefore be able to take advantage of 110% tax deduction to spread over the next 5 years. Alternately to the deduction, taxpayers may opt for a contribution of the same amount in the form of an advance discount from the supplier performing the works, or for turning it into tax credit, with the possibility of transferring the credit to third parties.

3) No VAT for facemasks, gloves and gel sanitiser

Until 31 December 2020, masks, gloves, gel sanitiser and other medical and PPEs are exempt from VAT payment. From 1st January 2021, a 5% VAT rate will be applied.

4) Non-refundable contribution for businesses and elimination of Regional Tax on Productive Activities (IRAP)

Small and medium-sized enterprises and self-employed VAT holders, who in April 2020 had a turnover lower than 2/3 of that of April 2019, can request non-refundable contributions. The granted contribution will not be part to the taxable base of income taxes, nor to the value of net production, for IRAP purposes. In relation to IRAP, the Revenue Office also reminds that business and self-employed workers with revenues or fees that have not exceeded 250 million euros in the previous tax period, will not have to pay the 2019 balance and the first instalment of the 2020 down payment. There is also a bonus for the rental rates of non-residential properties: it is possible to take advantage of a tax credit equal to 60% of the rent paid for the months of March, April and May 2020.

5) Suspension of payment orders and collection activities

The ‘vademecum’ summarizes the measures in favour of taxpayers regarding the collection activities of the Revenue Office (Agenzia delle Entrate – Riscossione). The decree provides for the suspension until 31 August 2020 of the payment terms deriving from payment orders, debit and assessment notices to be collected by the Revenue Office. The suspension also concerns the notification of new payment orders and other collection documents. Less strict rules are also in place for instalments in place or requested by 31 August 2020.

Finally, the Revenue Office clarifies that while it will issue the control-related documents expiring in 2020 by 31st December 2020, it will notify the taxpayers only in 2021, without charging interests.

If you wish to take advantage of tax breaks and bonuses and do not know how to do it or simply need clarification, you can contact us to our address: and we will put you in contact with our experts – lawyers, accountants, engineers and architects – for a careful evaluation of your specific case, in order to offer a clear solution to your problem.

Fiat Lux Legal
avv. Federica Loreti