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News 3 - Budget Decree

News 3 - tax measures of the so-called Relaunch Decree


Subject: Decree-Law No. 34 of May 19, 2020


At the conclusion of News having to do with the so-called Relaunch Decree, this circular reports the main fiscal measures contained in the relevant regulatory provision, among which the further extension of tax and contribution payments suspended as a result of the epidemiological emergency from COVID-19 stands out.


Title VI: Fiscal measures (Art. 119-164)

FURTHER POSTPONEMENT OF SUSPENDED PAYMENTS RELATING TO MARCH, APRIL AND MAY (Art. 126 - 127)

The so-called Relaunch Decree extended and standardized the terms of payments suspended by previous decrees-Care Italy Decree with regard to the suspension of March payments and Liquidity Decree for those related to April and May.


Payments subject to the suspension relating to withholding on employee and assimilated income, social security and welfare contributions as well as compulsory insurance premiums and payment of VAT, will be to be made, without application of penalties and interest in a single payment by September 16, 2020; or by installment up to a maximum of 4 equal monthly installments, with payment of the first installment by September 16, 2020.


The following are the due dates broken down by month showing the recipients, the subject of the suspension, the suspended period and the new payment date now standardized.


DUE DATES FOR PAYMENTS RELATED TO MARCH, APRIL AND MAY 2020


TAX CREDIT FOR UPGRADING WORK ENVIRONMENTS IN PLACES OPEN TO THE PUBLIC (ART. 120)

Individuals engaged in business, art or profession activities in places open to the public, associations, foundations and other private entities, including Third Sector entities, are granted a tax credit in an amount equal to 60 percent of the expenses incurred in 2020, up to a maximum of €80,000, in relation to interventions necessary to enforce health requirements and containment measures against the spread of the COVID-19 virus, including construction works necessary to:

  • The renovation of locker rooms and canteens;

  • The creation of medical spaces, entrances and common areas;

  • The purchase of safety furniture;

as well as investments in innovative activities, including those necessary for investments of an innovative nature such as the development or purchase of tools and technologies necessary for the performance of work activities; the purchase of equipment to control the temperature of employees and users.


The tax credit can be combined with other benefits for the same expenses, however, within the limit of the costs incurred and can be used in the year 2021 exclusively by offsetting.

A measure of the Director of the Revenue Agency will establish the procedures for monitoring the use of the tax credit.


TAX CREDIT FOR SANITIZATION OF WORK ENVIRONMENTS AND PURCHASE OF INDIVIDUAL PROTECTION DEVICES (Hereinafter PPE) (ART. 125)

To entities engaged in business, arts or professions, noncommercial entities, including Third Sector entities and civilly recognized religious entities, a tax credit in an amount equal to 60 percent of the expenses incurred in 2020 for the sanitization of environments and tools used, as well as for the purchase of PPE and other devices to ensure the health of workers.

The credit is limited to €60,000 per beneficiary, subject to a limit of €200 million for the year 2020.


Expenditures incurred until December 31, 2020 related to:

  • to the sanitization of the environments in which the aforementioned individuals carry out their work and institutional activities and the tools used in the course of such activities;

  • to the purchase of personal protective equipment, such as masks, gloves, face shields and goggles, protective suits and footwear, which comply with the essential safety requirements of European regulations; - to the purchase of cleaning and disinfectant products;

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