TAX CREDIT FOR INVESTMENT IN NEW INSTRUMENTAL GOOD

20 march 2020

TAX CREDIT FOR INVESTMENT IN NEW INSTRUMENTAL GOODS

 

The regulation of tax incentives envisaged to support the digital transition process of businesses, private spending on research and development and technological innovation has been redefined.

In practice, the new tax credit has replaced, since 2020, the old "super amortization" and hyper amortization facilities.

It is schematically illustrated :

A) The ' SCOPE APPLICATION                

Subjective assumption:

All companies (1) residing in the territory of the State, including permanent non-resident organizations, can access the tax credit, regardless of the legal form, the economic sector to which they belong, the size and the tax regime for determining income . Also included are professionals and flat rates.

 

Objective prerequisite:

Investments in new tangible assets that are instrumental to business operations are facilitated, unless specific exceptions are listed. Investments in new intangible assets instrumental to the business as per Annex B annexed to Law 232/2016 are also facilitated (i.e. intangible assets - software, systems and system integration, platforms and applications - connected to investments in assets materials «Industry 4.0») .

Time requirement:

The new tax credit applies to investments in new capital goods destined for production facilities located in the territory of the State made:

from 1.01.2020 and until 31.12.2020, or by 30.06.2021, provided that by 31.12.2020 the relative order is accepted by the seller and the payment of advances has been made at least equal to 20 % of the acquisition cost.

B) MEASURE OF TAX CREDIT     

For Investment having as their object goods included in Annex A attached to L. 232/2016 namely Beni materials instrumental whose operation and ' controlled by systems computerized or managed by means of suitable sensors and drives (ex hyper amortization):

The tax credit is recognized at the rate of 40% of the cost, for the share of investments up to € 2.5 million, and at the rate of 20% of the cost, for the share of investments over € 2.5 million, and up to the maximum limit of total eligible costs of € 10 million . For investments made through financial leasing contracts, the cost incurred by the lessor for the purchase of the assets is assumed.

For Investment having to expl to intangible assets recompose taken in Annex B attached to lla L. 232/2016 namely ie b intangible eni - software, systems and system integration, platforms and applications - related to investments in tangible goods "Industry 4.0 » ( Ex hyper amortization ):

The tax credit is recognized in the amount of 15% of the cost, within the maximum limit of eligible costs of € 700,000 ; s also consider the costs for services incurred in connection with the use of the assets referred to in Annex B via cloud computing solutions, for the portion attributable on an accrual basis .

For Investment relating to goods other than those listed in Annexes A and B an links to L. 232/2016 (Ex super amortization):

The tax credit is recognized in the amount of 6% of the cost determined pursuant to art. 110, c. 1, lett. b) Tuir, within the maximum limit of eligible costs of € 2 million. For investments made through financial leasing contracts, the cost incurred by the lessor for the purchase of the assets is assumed.

C) EXCLUSIONS     

Are excluded:

the vehicles and other means of motor transport indicated in Article 164, paragraph 1, of the Tuir

the assets for which the MEF decree of 31 December 1988 establishes depreciation ratios for tax purposes lower than 6.5%, therefore with an amortization greater than 15 years

buildings and constructions

the goods listed in Annex 3 of Law 208/2015, such as the pipelines used by the natural mineral water bottling industries or by the bathing and thermal establishments, the pipelines used by the natural gas production and distribution industries, the planes complete with equipment , the rolling stock, railway and tramway

freely transferable assets of companies operating, under concession and at tariff, in the energy, water, transport, infrastructure, post, telecommunications, waste water collection and purification and waste collection and disposal sectors

D) EARLY SALES AND RELOCATION OF THE FACILITATED GOODS    

If, by 31.12 of the 2nd year following that of the investment, the subsidized goods are sold for consideration or are destined for production facilities located abroad, even if belonging to the same person, the tax credit is correspondingly reduced by excluding the related cost from the original calculation basis .

The greater tax credit that may have already been used in set-off must be paid directly by the subject within the deadline for the payment of the income tax due for the tax period in which the aforementioned hypotheses occur, without the application of penalties and interests .

The temporary use of the property outside the territory of the State does not entail the recovery of the facility as it does not configure a destination with a production facility located abroad (Interpello Ag. Entrate n. 14/2020 )

E) TAX CREDIT     

The tax credit due can only be used to offset:

  1. in 5 equal annual installments;
  2. in 3 annual installments for investments concerning assets included in Annex B annexed to Law 232/2016 (intangible assets).

Effective:

1) from the (calendar) year following the year of entry into operation of the assets for investments concerning assets other than those mentioned in Annex A and B;     

2) from the (calendar) year following that of the interconnection of assets for investments concerning assets included in Annex A and B annexed to Law 232/2016     

The tax credit, to be indicated in part RU of the Income model, can be used in compensation from the first day of the year following that of accrual, without being subject to the obligation of prior presentation of the tax return from which it emerges, envisaged by Legislative Decree 124/2019 in the case of amounts greater than € 5,000.

These compensations are subject to the obligation to use the Revenue Agency's electronic channels for the transmission of the related F24 models (Telefisco 2020).

Use in compensation is not subject to annual limits (generally € 700,000, or € 250,000 for receivables from the HR framework) nor to the prohibition of compensation in the presence of tax payables.

The tax credit cannot be transferred or transferred even within the tax consolidation.

The tax credit does not contribute to the formation of income as well as the IRAP tax base and does not count for the purposes of the relationship pursuant to art. 61 (ROL) and 109, c. 5 (deductibility negative components) Tuir.

The tax credit can be combined with other concessions that have the same costs as their object, provided that such accumulation, also taking into account the non-competition to the formation of income and the IRAP tax base, does not lead to exceeding the cost incurred.

F) COMMUNICATION TO MISE     

For the sole purpose of allowing the MISE to acquire the information necessary to evaluate the progress, diffusion and effectiveness of the facilitating measures, the companies that make use of these measures make an electronic communication to the Ministry

G) DOCUMENTATION TO KEEP     

For the purposes of subsequent checks, the persons who make use of the tax credit are required to keep, under penalty of revocation of the benefit, the appropriate documentation to demonstrate the effective support and the correct determination of the eligible costs.

To this end, the invoices and other documents relating to the acquisition of subsidized goods must contain the express reference to the regulatory provisions (purchase pursuant to art. 1, cc. 184-197 L. 160/2019).

In relation to the investments relating to goods included in Annex A and B annexed to Law 232/2016, companies are also required to produce a simple technical report issued by an engineer or industrial expert registered in their professional registers o a certificate of conformity issued by an accredited certification body, which proves that the goods have technical characteristics such as to include them in the lists referred to in the aforementioned annexes and are interconnected to the company production management system or to the supply network.

For goods with a unit purchase cost of not more than € 300,000, the documentary burden can be fulfilled through a self-declaration made by the legal representative.

H) ACCOUNTING ASPECTS    

The tax credit can be considered a contribution to the plant account, as the condition of its use is the acquisition of the instrumental asset .

The amount, which is not taxable for tax purposes, can be recognized in item A.5 of the income statement and deferred based on the duration of the asset amortization process (indirect method).

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