Tax Credit Training 4.0
The tax credit available for 4.0-related training is intended to support staff training for the consolidation of skills or the acquisition of new skills in technologies relating to the technological and digital transformation of businesses.
This tax relief is available to all businesses, regardless of their legal status, the industry in which they operate, and the accounting scheme they apply. The mechanism is also available to businesses that have not taken advantage of the incentives for investments in 4.0-eligible operating assets.
While available to all businesses with the exception of those in distress, the 2020 Italian Budget Law stipulates that use of the tax credit is subject to the condition that the business has not received any disqualification penalties, complies with occupational safety regulations, and is up to date with social security and welfare payments for its workers.
The tax credit for 4.0-related training costs is available for training concerning the following topics:
- Big data and data analysis
- Cloud and fog computing
- Cyber security
- Cyber-physical systems and simulation
- Rapid prototyping
- Viewing systems, virtual reality (VR), and augmented reality (AR)
- Advanced and collaborative robotics
- Human-machine interfaces
- Additive manufacturing (also known as 3D printing)
- Internet of things and machines
- Digital integration of business processes
Eligible expenses include:
- cost to the company of employees involved in training in terms of the actual work hours or days spent in training activities, as a learner or teacher. This cost consists of the salary, gross of withholdings and social security and welfare contributions, including accrued severance pay, extra month bonuses, holiday, and other kinds of leave accrued during the time spent on training, and any travel allowance;
- consulting costs relating to the training project;
- if the training is provided by parties outside the company, the cost thereof is eligible only if assigned to qualified professionals;
- operating costs for trainers and training participants relating directly to the training project (travel costs and materials for the project).
Consulting and Assistance Service
What we do for you
Warrant Hub supports and assists businesses when setting up, managing, and reporting on their project.
When setting up a project, Warrant Hub helps companies to:
- prepare the feasibility analysis based on the activities either carried out and/or to be carried out and the sizing of the training investment;
- formalise the training plan, identifying areas, contents, and methods of internal training consistent with the tax relief measure;
- establish what online training or e-learning channel requirements need to be met for costs to be eligible, focussing on the verification actions required.
During the project management stage, meanwhile, we work alongside companies to:
- design an internal training model for the transmission of training, whether it comes from an external or an internal source;
- validate the attendance registration system;
- monitor the progress of training activities (hours spent in training, to calculate hourly costs per employee) and the necessary documentation, namely:
- final detailed report;
- training activity attendance registers;
- certification issued to workers to demonstrate skills consolidated/acquired.
Finally, during the project reporting stage, Warrant Hub prepares the reporting pack, which includes:
- documentation demonstrating the training provided, including the attendance registers, the summary of the total hours carried out, and the accounting documentation relating to the hourly costs of the employees involved in training;
- the final report illustrating the organisational methods and contents of the training activities carried out;
- the system for issuing certificates stating the knowledge and skills acquired and/or consolidated to employees who have completed the training.
The opportunity to use the credit is only allowed as a set-off from the tax period following the one in which the expenses were incurred.
The benefit is established according to the following parameters:
- A tax credit of 50% for small businesses, with a maximum limit of €300,000.
- A tax credit of 40% for medium-sized enterprises, with a maximum limit of €250,000.
- A 30% tax credit for large enterprises, with a maximum limit of €250,000.
However, if the training activity involves disadvantaged or very disadvantaged employees, as defined in the Decree of 17 October 2017 by the Ministry of Labour and Social Policies, the tax credit increases to 60 %.
The 'Training 4.0 tax credit' measure has been enhanced in order to improve the technological and digital transformation process of small and medium-sized enterprises, with Article 22, paragraph 1 of Decree-Law No. 50 of 17 May 2022 the following was introduced:
The rate will be increased from 50% to 70% for small enterprises and from 40% to 50% for medium-sized enterprises. The following terms and conditions will apply:
- The training activities will be provided by qualified entities outside the enterprise. Highly specialised competence centres as defined by Article 1, paragraph 115, of Law No. 232 of 11 December 2016 and European Digital Innovation Hubs will be considered qualified entities.
- It will be necessary to assess in advance the level of basic and specific competence of the participants in the training activities.
- The trainer will determine the content and duration of the training activities, which must have a total duration of at least 24 hours.
- The application of the tax credit increase will be conditional upon the employees participating in the course passing a final test.
- The courses may also be followed in e-learning mode.