CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. EC Approves Italy's IRAP Tax Deductions For Job Creation

EC Approves Italy's IRAP Tax Deductions For Job Creation

by Ulrika Lomas, Tax-News.com, Brussels

12 December 2005


The European Commission announced last Thursday that it has authorised, under EC Treaty state aid rules, the fiscal incentives for companies adopted by Italy in its Competitiveness Decree law.

The scheme provides for deductions from the Italian tax on regional productive activities (IRAP) and is designed to stimulate job creation.

The measure encourages the creation of jobs particularly in the assisted area of the Mezzogiorno where the rate of unemployment is still high compared to other parts of Italy. In addition, the Commission stated that it considers that the potential adverse effects on trade and competition are proportionate and necessary to achieve the objectives of the scheme.

The Commission therefore concluded that the measure meets all the conditions laid down in Regulation 2204/02 on the application of state aid rules for employment.

Competition Commissioner Neelie Kroes commented: “By approving this measure, we have shown once again that state aids can play an active role in supporting job creation whilst avoiding undue distortions of competition”.

However, a case is pending on IRAP before the Court of Justice, which has been asked to give a preliminary ruling on the question of whether this tax is compatible with the Community prohibition of national turnover taxes other than VAT.

TAGS: Italy

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »