The new National Plan Transition 4.0 is the first brick on which the Italian Recovery Fund is built. The investment consists of approximately 24 billion of euros for a measure that becomes structural and sees the enhancement of all deduction rates and an important advance in the timing of use.
The new National Transition 4.0 Plan has two fundamental goals:
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Stimulating private investment;
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Give stability and certainty to companies with measures that take effect from November 2020 to June 2023.
New duration of measures
- The new tax credits are provided for two years;
- The effective date of the measure is brought forward to 16 November 2020;
- The possibility, for contracts for the purchase of capital goods defined by 31/12/2022, to benefit from the credit with only the payment of a deposit equal to at least 201Q3T of the amount and delivery of the goods in the following 6 months is confirmed (i.e, by June 2023).
Anticipation and reduction of compensation with increased tax advantage in the year
- For investments in 'ex super' capital goods and non 4.0 intangibles made in 2021 by persons with revenues or compensation of less than EUR 5 million, the tax credit is available in one year;
- The following is permitted immediate compensation (from the current year) of the credit related to investments in capital goods;
- For all tangible capital goods tax credits, the use of credits is reduced to 3 years instead of 5 years provided for in current legislation.
Credit Training 4.0 - See our courses
- Extension of the tax credit to expenses incurred for the training of employees and entrepreneurs;
- It is recognised within the two-year period covered by the new measures (2021 and 2022).
What it is for
The measure aims to support companies in the process of technological and digital transformation by creating or consolidating skills in the enabling technologies necessary to realise the 4.0 paradigm.
What advantages
The tax credit is recognised to the extent of:
- 50% of eligible expenditure and up to € 300,000 per year for micro and small enterprises
- 40% of eligible expenditure up to a maximum annual limit of € 250,000 for medium-sized enterprises
- 30% of eligible expenditure up to an annual ceiling of €250,000 for large enterprises.
The measure of the tax credit is increased for all undertakings, subject to the maximum annual limits, to 60% in the event that the recipients of the eligible training fall within the categories of disadvantaged or very disadvantaged employees, as defined by the Decree of the Minister of Labour and Social Policy of 17 October 2017.
Eligible Expenditure
The following expenses are eligible for the tax credit
- personnel costs related to trainers for the hours of participation in training;
- running costs of trainers and trainees directly related to the training project, such as travel expenses, materials and supplies directly related to the project, depreciation of tools and equipment to the extent that they are used exclusively for the training project. Accommodation costs are excluded, except for the minimum accommodation costs necessary for participants who are workers with disabilities;
- costs of consultancy services related to the training project;
- personnel costs related to trainees and indirect overheads (administrative costs, rent, overheads) for the hours during which the trainees attended the training.
Any expenses relating to employees ordinarily employed in one of the business areas identified in Annex A to Law No. 205 of 2017 and participating as teachers or tutors in the eligible training activities are also eligible.
Eligible training activities
Training activities should cover: sales and marketing, information technology, production techniques and technology.
Themes of Training 4.0 - See our courses
- big data and data analysis;
- cloud and fog computing;
- cyber security;
- simulation and cyber-physical systems;
- rapid prototyping;
- visualisation systems, virtual reality (rv) and augmented reality (ra);
- advanced and collaborative robotics;
- man-machine interface;
- additive manufacturing (or three-dimensional printing);
- internet of things and machines;
- digital integration of business processes.
Who it is aimed at
All enterprises resident in the territory of the State, including permanent establishments of non-residents, regardless of their legal nature, economic sector, size, accounting regime and system for determining income for tax purposes.
Companies in a state of voluntary liquidation, bankruptcy, compulsory administrative liquidation, composition with creditors without continuity of business activities, other insolvency proceedings are excluded. Also excluded are companies subject to disqualification sanctions pursuant to Article 9(2) of Legislative Decree No. 231 of 8 June 2001.
Entitlement to the benefit is conditional on compliance with workplace safety regulations and the proper fulfilment of obligations to pay social security and welfare contributions for workers.
Delivery of training activities
Internally through employees; where training activities are provided by parties outside the company, only activities commissioned from:
- Subjects accredited to carry out training activities financed by the Region or Autonomous Province where the enterprise has its registered office or operational seat;
- Universities, public or private, or facilities linked to them;
- Entities accredited with interprofessional funds according to Commission Regulation EC 68/01 of 12 January 2001;
- Subjects in possession of quality certification according to Uni En ISO 9001:2000 sector EA 37;
- ITS.
How to access
The tax credit must be reported in the tax return for the tax period in which the expenses were incurred and in those for subsequent tax periods until its utilisation ends.
The credit can be used, exclusively by offsetting, from the tax period following that in which the eligible expenses were incurred, by submitting the F24 form through the telematic services made available by the Revenue Agency.
In order to be eligible for the tax credit, the actual incurrence of eligible expenses must be proven by certification - to be attached to the financial statements - issued by the statutory auditor. Companies not subject to statutory auditing must in any case avail themselves of the services of a statutory auditor or auditing firm. Companies with audited financial statements are excluded from the certification requirement.
Expenditure incurred to comply with the obligation to certify accounts by companies that are not subject to statutory auditing is admissible as a direct increase of the tax credit within the limit of €5,000.
Enterprises benefiting from the tax credit are also required to draw up and retain:
- a report outlining the organisation and content of the training activities carried out;
- the additional accounting and administrative documentation to prove the correct application of the benefit, also with regard to compliance with the limits and conditions laid down by the relevant Community rules;
- the records of the training activities signed by the trainee and teaching staff or by the external trainer.
Enterprises intending to benefit from the facilitation are required to notify the Ministry of Economic Development, which is required for the sole purpose of acquiring the information necessary to assess the progress, dissemination and effectiveness of the facilitation measures.
Regulations
- Art. 1, paras 46 - 56, Act No. 205 of 27 December 2017 (normattiva.it)
- Art. 1, paras. 78 - 81, Act No. 145 of 30 December 2018 (normattiva.it)
- Art. 1, paras 210 - 217, Act No. 160 of 27 December 2019 (normattiva.it)
- Art. 1(1064)(i) and (l), Act No. 178 of 30 December 2020 (gazzettaufficiale.it)
- Article 1, paragraphs 46 - 56, Law No. 205 of 27 December 2017 (normattiva.it)
- Decree of 4 May 2018 (pdf) - published in Official Gazette No. 143 of 22 June 2018
- Explanatory Report of the Decree 4 May 2018 (pdf)
- Director's Circular No. 412088 of 3 December 2018 - Clarifications on tax credit (pdf)
- Revenue Agency Circular No. 8 of 10 April 2019 - Section 3.2
