Revaluation Equity , Corporate Property and Land
The budget law (L. 160/2019) has extended for 2020 the possibility of revaluing corporate assets and additional company shares has also added the possibility of revaluing agricultural or building land for urban use.
In this news we will see what these revaluations consist of and the benefits that businesses and taxpayers can benefit.
The revaluation of equity investments
Law 160/2019 has reopened the deadlines for carrying out the revaluation operation of equity investments not traded on regulated markets owned as of 01.01.2020 not in business.
The rule therefore allows individuals to operate a revaluation at market value of the tax value recognized of participation is usually at least equal to their net asset value than the company's equity. The value which may even be greater than the share of equity must be certified by a sworn appraisal of a professional enrolled in the order of chartered accountants or a statutory auditor.
The revaluation allows you to free the tax value of the share to the appraisal value by paying a substitute tax of 11% .
The tax can also be paid in installments and in three annual installments:
- 1st installment 06/30/20
- 2nd installment 06/30/21 (plus interest at 3% per year)
- 3rd installment 06/30/22 (plus interest at 3% per year)
It is important to underline that the non-payment of the first installment or its payment beyond the deadline entails the appraisal of the benefit of the revaluation.
The revaluation of corporate assets
Law 160/2019 has reopened the possibility of revaluing the company assets resulting from the financial statements closed on 31.12.219.
The revaluation can be carried out by all subjects in business income and the following can be revalued:
- Material goods
- Intangible assets
- Fixed assets in subsidiaries and associated companies
The revaluation must concern all the assets belonging to a homogeneous category.
Real estate cannot be revalued in the case in which it is the production or exchange of these goods that are the object of the business activity.
The revaluation will produce physical effects in the following terms:
- Higher deductible depreciation (from 2022);
- Capital gains or losses (from 2023)
This means that the revaluation of the asset is made in 2020 but the tax effects have been produced since 2022, therefore the benefit of the greater depreciation is produced fiscally in the financial statements closed on 31.12.2022.
The revaluation must be noted in the inventory book and in the explanatory notes and cannot exceed the maximum value attributable by the market.
The directors and the board of statutory auditors must indicate and justify the criteria followed in the revaluation and certify that it does not exceed the "maximum value".
The substitute tax on postage is equal to 12% on the higher value of the assets depreciable for tangible assets .
The substitute tax is equal to 10% on the higher value of the assets depreciable for intangible assets.
Taxes are paid as follows:
- In three equal installments in which the first is scheduled to end with the balance paid dele mposte income tax and the expiration of 2 years for amounts up to € 3,000,000.
- in 6 installments of the same amount at the payment deadline if the value exceeds € 3,000,000.
Land revaluation
By effect of the law l. 160/2019 has introduced the ability to restate the book value of the land ediicabili and the agricultural purpose possessed at the time of 1:01:20.
The revaluation can be done by natural persons, simple companies, non-commercial entities.
Building or agricultural land owned as of 01.01.20 may be revalued. The substitute tax is 11% and must be paid by 30.06.20 also in installments as required for the revaluation of unlisted corporate equity investments.
Dr. Lorenzo Rogai
For any other information, please contact Rogai & Partners
www.studiorogai.it
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