The "Cura-Italia" Decree (Law Decree no. 18/2020, the "Decree"), published in the Official Gazette on March 17, 2020, provides for some fiscal measures to support the liquidity of companies and families.

Financial support measures for companies (Article 55)

Article 55 of the Decree fully replaces art. 44-bis of Legislative Decree no. 34/2019. The aim of the law is to encourage the sale of impaired receivables (receivables past due for over 90 days) of companies in order to sustain their liquidity.

It sets out the possibility to convert into a tax credit the deferred tax assets ("DTA") relating to tax losses and to the Allowance for Corporate Equity (“ACE”, also known as Notional Interest Deduction – NID  ), for a maximum amount equal to 20% of the nominal value of the impaired receivables sold before  December 31, 2020.

The impaired receivables sold by a company are considered eligible for the new provision up to a maximum nominal value of €2 billion, calculated considering all the impaired receivables sold before December 31, 2020, by companies that are controlled, directly or indirectly, by the same company, pursuant to Article 2359 of the Italian Civil Code.

This law is not applicable to companies that have been declared to be in a situation of economic collapse or insolvency, pursuant to the Italian Code of Corporate Crisis and Insolvency.

Tax credits resulting from the conversion of DTAs may be:

• used to offset other taxes;
• assigned, pursuant to Articles 43-bis and 43-ter of Presidential Decree no. 602/1973;
• claimed for reimbursement.

Payments relief time limit (art. 60)

The deadlines for payments to public administrations, including those relating to social security and welfare contributions and compulsory insurance premiums, which expired   on 16 March, 2020, are deferred to 20 March, 2020.

Suspension of withholding tax payments, social security and welfare contributions and compulsory insurance premiums (Art. 61)

A wider range of subjects¹ is granted a suspension until 30 April, 2020, of the following deadlines, which were already provided by Article 8 of Law Decree no. 9/2020 for tourist accommodation companies, travel agencies and tour operators having a fiscal domicile, registered office or place of business in the territory of the Italian state:

• withholding tax payments on employees’ salaries and similar;
• mandatory formalities and payments of social security and welfare contributions and premiums for compulsory insurance.

These payments shall be carried out, without the application of penalties and interest, as a lump sum by May 31, 2020, at the latest or by instalments up to a maximum of five equal monthly instalments starting in May 2020.

For national sports federations, sports promotion bodies, professional and amateur sports associations and clubs, the suspension of payments shall apply until May 31, 2020. Payments shall be carried out, without the application of penalties and interest, as a lump sum by June 30, 2020, at the latest or by instalments up to a maximum of five equal monthly instalments starting in June 2020.

Suspension of the terms of mandatory formalities and payment of tax and social security contributions (art. 62)

The provision sets out the suspension of certain tax obligations and payments differently according to different types of taxpayers:

1. For taxpayers with a fiscal domicile, registered office or place of business in Italy, all tax obligations (other than the payment of withholding taxes and regional and municipal surtax), with deadlines between  March 8 and May 31, 2020, are deferred.

These obligations should be carried out by June 30, 2020 without the application of penalties.

2. For companies and self-employed artists and professionals that registered in 2019² revenues or fees not exceeding € 2 million, the following payments falling due between March 8 and March 31, 2020, are deferred:

• withholding taxes and regional and municipal surtax on employees;
• value added tax;
• social security and welfare contributions, and premiums for compulsory insurance.

With reference to companies and self-employed artists and professionals with a fiscal domicile, registered office or place of business in the provinces of Bergamo, Cremona, Lodi and Piacenza, the suspension relating to value added tax applies regardless of the volume of revenues or compensation received.

These payments shall be carried out, without the application of penalties and interest, as a lump sum by May 31, 2020, at the latest or by instalments up to a maximum of five equal monthly instalments starting in May 2020.

3. Taxpayers with a fiscal domicile, registered office or place of business in Italy that registered in 2019³ revenues or fees not exceeding  € 400,000 can ask their customers to be paid gross of withholding tax (Articles 25 and 25-bis of Presidential Decree no. 600/1973) for revenues and fees paid between March 17, 2020, and  March 31, 2020, provided that, in the previous month, they did not incur expenses for employees or similar work. Taxpayers who wish to take advantage of this relief shall provide the withholding agent with a specific declaration.

The withholding tax shall be paid directly by the taxpayers, without the application of penalties and interest, as a lump sum by May 31, 2020, at the latest or by instalments up to a maximum of five equal monthly instalments starting in May 2020.

Tax premium for employees (art. 63)

Employees with an annual gross salary lower than €40,000 are given a € 100tax-exempt additional salary for March 2020, which is calculated in relation to workdays.

The premium is automatically awarded by the employer, if possible with the April 2020 salary, and, in any case, within the terms for the end of year balance.

Tax credit for workplace sanitization costs (art. 64)

A tax credit equal to 50 per cent of the cost of sanitizing workplaces  and equipment up to a maximum of € 20,000 is recognized for all companies and self-employed artists and professionals, in order to encourage the sanitization of workplaces to contain the COVID-19 virus infection . The relevant implementing provisions are delegated to a decree to be issued by the Minister of Economic Development, in conjunction with the Minister of Economy and Finance, to be adopted within 60 days from the date of entry into force of the Decree.

Tax credit for shops and stores (Art. 65)

Businesses whose activities have been suspended pursuant to the Prime Ministerial Decree dated March 11, 2020, are granted a tax credit  equal to 60 per cent of the amount of the rent, relating to the month of March 2020, for buildings falling under cadastral category C/1.

Tax incentives for donations to support measures to fight the COVID-19 epidemiological emergency (art. 66)

For donations in cash and in kind to support measures to fight COVID-19 epidemiological emergency:

• if made by individuals and non-commercial entities, in favour of the state, regions, local and regional authorities, public bodies or institutions, legally acknowledged non-profit foundations and associations there is a deduction from taxes of 30% of the donation, for an amount not exceeding  € 30,000;
• if made by individuals declaring business income, the full deduction from the business income for both CIT and regional tax purposes is recognized.

Suspension of the terms relating to the activity of the tax authorities offices (art. 67)

From March 8 to May 31, 2020, the following terms are suspended:

• terms relating to audit, assessment, collection and litigation, granted to the Tax Administration;
• terms granted to the Tax Administration to reply to rulings;
• terms granted to taxpayers to regulate the rulings requests (pursuant to art. 3 of Legislative Decree no. 156/2015);
• terms to reply to the request for admission to the:

1. cooperative compliance regime (Legislative Decree no. 128/2015);
2. enhanced cooperation and collaboration procedure (Law Decree no. 50/2017);
3. international standard ruling procedure (Art. 31-ter of Presidential Decree no. 600/1973);
4. downward adjustment procedure (Art. 31-quarter of Presidential Decree no. 600/1973);
5. patent box procedures.

For rulings filed during the suspension period, the terms granted to the Tax Administration to reply set forth by the relevant provisions, as well as the deadlines for their regulation, will start from the first day of the month following the end of the period of suspension.

For the same period, it is possible to file rulings exclusively online.

Furthermore, the statute of limitation relating to the activities of the tax authorities offices with a deadline before e December 31, 2020, are extended until the end of the second year following the end of the period of suspension. As a consequence, the statute of limitation relating to fiscal year 2015 is extended to 31 December, 2022.

Suspension of the deadlines for payments due to the collection agent (Article 68)

The deadlines for the following payments, due between March 8, 2020, and May 31, 2020, are deferred:

• tax bills issued by Tax Collection Agents;
• tax assessment notices issued by the Revenue Agency;
• notices issued by INPS;
• notices issued by the Customs Agency;
• injunctions and collection notices issued by local authorities;
• notices issued pursuant to Article 1, par. 792 of Law no. 160/2019 (so-called "enhanced collection").

These payments shall be made, in a a lump sum, within one month following the end of the suspension period.

The suspension up to May 31, 2020 is also related to:

• the payment deadline for the “rottomazione-ter” procedure that expired on February 28, 2020;
• the payment deadline for the “saldo e stralcio delle cartelle” procedure, which is expired on March 31, 2020.

Deferral of payments in the gaming sector (Article 69)

The deadline for the payment of the one-off tax withdrawal (“PREU”) on gaming machines referred to in Article 110, par. 6, lett. a) and b) of the Decree no. 773/1931 (TULPS) and the concession fee expiring by April 30, 2020, is extended to May 29, 2020. The amounts due shall be paid in monthly instalments of equal amounts. The first monthly instalment shall be paid before May 29, 2020; the last instalment shall be paid before December 18, 2020. Interest applies at the legal rate.

1.The provision identifies the following categories of subjects:

a) national sports federations, sports promotion bodies, professional and amateur sports associations and clubs, as well as individuals/entities managing stadiums, sports facilities, gyms, dance, fitness and bodybuilding clubs and facilities, sports centers, swimming pools and swimming centers;

b) individual/entities managing theatres, concert halls, cinemas, including ticketing services and support activities for artistic performances, as well as discos, dance halls, nightclubs, amusement arcades and billiards;

c) individuals/entities managing lottery receivers, lotteries, gambling, including management of the relevant machines and equipment;

d) individuals/entities organizing courses, fairs and events, including those of an artistic, cultural, recreational, sporting and religious nature;

e) individuals/entities who run restaurants, ice cream parlors, pastry shops, bars and pubs;

f) individuals/entities managing museums, libraries, archives, historical places and monuments, as well as botanical gardens, zoos and nature reserves;

g) individuals/entities running day nurseries and daycare services for disabled children, educational services and nursery schools, first and second level educational services, professional training courses, sailing, navigation and flying schools, offices issuing patents or commercial licences, professional driving schools for drivers;

h) individuals performing non-residential social work for the elderly and disabled;

i) spas pursuant to Law no. 323 dated 24 October 2000 and centers for physical wellbeing;

l) individuals/entities managing amusement or theme parks;

m) individuals/entities managing bus, train, subway, maritime or airport stations;

n) individuals/entities managing freight and passenger transport services by land, air, sea, river, lake and lagoon, including the operation of funiculars, cable cars, gondolas, chairlifts and ski-lifts;
o) individuals/entities managing land, sea, river, lake and lagoon transport rental services;

p) individuals/entities managing rental services of sports and recreational equipment or facilities and equipment for events and shows;

q) tour guides and tourist assistants;

r) non-profit organizations of social utility pursuant to Article 10 of Legislative Decree No 460 dated December 4, 1997, registered in the relevant registers, voluntary organisations registered in the regional and autonomous province registers puruant to Law No. 266 dated August 11, 1991, and social promotion associations registered in the national, regional and Trento and Bolzano autonomous province registers pursuant to article 7 of law no. 383 dated December 7, 2000, managing, exclusively or mainly, one or more activities of general interest as provided for by article 5, paragraph 1 of legislative decree no. 117 dated July 3, 2017.

2.In case the tax period differs from the calendar year, reference must be made to the tax period prior to the one effective on the date of entry into force of the Decree.

3.In case the tax period differs from the calendar year, reference must be made to the tax period prior to the one effective on the date of entry into force of the Decree.