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Italian Tax Agency Summarizes New COVID-19 Tax Support Measures

Thursday, May 28, 2020

On May 21, 2020, the Italian Revenue Agency issued a summary of additional tax measures in Decree 34/2020, which are intended to further support taxpayers affected by the COVID-19 virus.

The decree provides for the following measures:

  • A tax credit equal to 60 percent of expenses incurred on adapting businesses to meet health and safety requirements intended to help prevent the spread of COVID-19, including spending on the sanitization of workplaces and personal protective equipment (PPE).
  • A 110 percent deduction for works to make houses more energy efficient and resistant to earthquakes and for the installation of electric vehicle charging equipment from July 1, 2020, until December 31, 2021.
  • The zero-rating of supplies of masks, PPE, and medical devices until December 31, 2020. From 2021, VAT on these supplies will be five percent.
  • Tax-exempt grants for small and medium-sized enterprises and VAT-registered self-employed individuals who experienced a reduction in turnover of at least two-thirds in April 2020 compared with the same month in 2019.
  • Suspension of collection activities relating to tax debit notices and assessment notices until August 31, 2020.