Italian Government announces urgent anti-crisis tax measures
The Italian Government approved a number of urgent tax measures to tackle the crisis and boost the economy.
Capital injections in Italian companies such as in Italian branches of EU based entities give right:
i) For the investor: to a tax credit equal to 20% of the injection. The recipient must have suffered a qualified contraction of its 2020 turnover as a result of the Covid19 lockdown. The credit cannot exceed € 400K and may be offset against 2020, 2021 and 2023 tax liabilities. The allowance is not available for intra group capital injections.;
ii) For the recipient: to a tax credit equal to 50% of the company’s tax losses exceeding 10% of its equity up to 30% of the resulting capital increase.