Products

With the Stability Law 2016 (Law 208/2015, article 1, paragraphs 91-97) a tax relief in favour of companies and professionals that invest in new operating tangible assets during the period between October 15th, 2015 and December 31st, 2016 is introduced.

This tax relief, better known as the discipline of “super depreciation”, allows Italian companies, Italian branches of non-resident companies and Italian professionals to increase, just for tax purposes, the cost base incurred for acquiring the new operating assets by 40%, enabling to allocate amortizations on an “higher” deemed cost as compared to the effective purchase cost. 

The favourable provision also applies in case the assets are acquired with a financial leasing. As it appear evident, this new regulation has been introduced in order to stimulate investment in new operating assets.

The potential beneficiaries of the tax relief are individuals or entities generating income from trade and individuals or entities generating income from a profession which have to pay Italian tax on that income.

All the investments in new operating tangible assets may benefit from the favourable tax treatment. In order to be eligible, the new assets must be intended for durable use and aimed to be used as a production tool.

The tax relief consists of a 40% increase of the purchase cost of the assets subject to tax depreciation. The increase is relevant for tax purposes only, meaning that there will be no effect on the depreciation charge to be posted to P&L account. The amount of the annual depreciation will be calculated on this amount. The rule provides for the deduction of the depreciation charges and of leasing fees benchmarked to a tax cost increased by 40%. The access to the favourable tax treatment becomes concrete with a deduction in the tax return, during the whole period of amortization or deduction of the leasing fees.