With Circular Message nr. 15/E issued on June 12th, the Italian Tax Agency provided further guidelines and explanations regarding criteria, methods and terms of the application to obtain the non-repayable relief under art. 25 of the Law Decree no. 34/2020, also known as “Relaunch Decree”. The Document explains how to apply for this bonus and illustrates the requirements needed to access the fiscal measure introduced in order to support economy and businesses, strongly affected by Covid-19 outbreak.
Accounting parameters that give right to tax relief
Subjects who can have access to the non-repayable grants are companies, self-employed and agricultural businesses who in fiscal year 2019 achieved revenues not exceeding 5 million euros and which turnover in April 2020 has been 2/3 lower than the turnover for the same month of 2019.
For those who started their business after January 1st 2019, the relief is recognized regardless of any drop in their turnover.
Subjects not allowed to the non-repayable relief
On the other hand, entities who ceased their activities on March 31 2020, public administrations, financial intermediaries, financial and non-financial holding companies, subjects that have benefited from bonuses provided by the so-called “Cura-Italia” Decree, and professionals enrolled in private law compulsory social security (such as Accountants, Lawyers, Architects, etc.), are all excluded from the grant.
Size of the tax relief
The amount of the contribution due is determined by applying the following rates to the aforementioned turnover difference:
20% in case of 2019 revenues/fees not exceeding € 400 thousand;
15% if 2019 revenues or fees were between € 400,000.01 and € 1 million;
10% for revenues/fees higher than 1 and less than 5 million euro.
The contribution is in any case recognized with minimum amount of 1.000 euros for individuals and 2.000 euros for subjects other than individuals (companies).
A free tax contribution
The non-repayable grant is excluded from taxation on income as well as from the calculation of IRAP (Regional Tax) tax base.
How to submit the application
As illustrated by the Circular Message, the application has to be submitted, even through an intermediary (Certified Accountant), to the Tax Agency between June 15 and August 13 2020, by filing a specific form. In case the amount of the contribution due is higher than 150.000 euros, the application form has be submitted in PDF format digitally signed by the applicant and sent exclusively by certified electronic mail (PEC).
Ex-post fiscal audit
After paying the contribution, the Tax Agency will audit data declared and will carry out further controls also in relation to e-invoices and e-payments made by the applicant. In addition, specific checks will be carried out to prevent criminal infiltration attempts: these checks are governed by a specific memorandum of understanding signed between the Ministry of Interiors, the Ministry of Economy and Finance and the Tax Agency itself. Should it emerge that contribution is in whole or in part not due, also following the subsequent checks of anti-mafia rules compliance, the Tax Agency will proceed to recover the contribution by imposing related penalties.