EU Approves Italian COVID-19 Tax Breaks
by Ulrika Lomas, Tax-News.com, Brussels
03 July 2020
The European Commission has approved under state aid rules four Italian tax schemes to support companies and self-employed workers affected by the coronavirus outbreak.
Italy notified the Commission under the Temporary Framework for state aid four measures with an overall estimated budget of EUR7.6bn, which waive certain taxes and provide tax credits for companies and self-employed workers.
The Italian Government will provide a partial waiver of the regional tax on production activities (IRAP) for companies and self-employed workers with revenues not exceeding EUR250m in 2019. Banks and other financial institutions are excluded from the scheme. There will be an exemption from the municipal tax (IMU) for touristic properties used for commercial purposes.
Tax credits will be made available to support the adaptation of production processes and workplaces to reduce the risk of spreading COVID-19. Tax credits will also be made available for certain companies and self-employed workers (depending on the level of revenues) in relation to rents and leases for non-residential properties and business leases for the period between March and June 2020.
The Commission concluded that the measures are necessary, appropriate and proportionate to remedy a serious disturbance in the economy of an EU member state, in line with state aid rules.
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