Italy's August Decree converted into law: sanitation bonus refinanced

20 October 2020

At the last minute, on the last day available, the conversion law of the extensive 'August Decree' (Legislative Decree n. 104, dated 14 August 2020) reached the Official Gazette (ordinary supplement to Gazette n. 253 dated 13 October 2020 - General Series), coming into force in mid-August and introducing further emergency measures to relaunch and support work and the economy.

The measures for businesses include numerous opportunities, such as:

  • the return, for 2020-2021, of 65% Tax Credit for the redevelopment of accommodation facilities, usable in a single instalment to offset payables, with €360 million set aside;
  • an increase in the advertising bonus provision to €85 million for 2020. For this year only, businesses or self-employed workers and non-commercial entities that invest in advertising campaigns, in the daily press and periodicals (including online versions) as well as on local and national television and radio (analogue or digital) not owned by the State, can access the tax facility even if their advertising investments have not increased in relation to similar investments they made during the previous year;
  • provision of a new Tax Credit for advertising investments for professional sports leagues and clubs and amateur sports clubs and associations, with €90 million earmarked;
  • refinancing of the ‘Nuova Sabatini’ tool, the innovation voucher, and development contracts;
  • extension of the rents bonus and moratoriums for SMEs;
  • contributions for the catering industry and for businesses in historic towns and cities frequented by tourists;
  • new regulations for the revaluation of business assets and equity investments.

During the conversion, certain significant changes were introduced to the wording of the Decree issued last August.

A major change concerning the tax credit for PPE sanitation and purchases introduced by Article 125 of what is known as the ’Relaunch Decree’ (Italian Law Decree n. 34/2020 converted into Law n. 77/2020) has been made to encourage the adoption of measures to contain and combat the spread of Covid-19. (...)

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