Report from Giusy Bochicchio, IBFD Research Associate

On 3 August 2009, the Anti-crisis Decree was converted into Law Decree No. 103 (the Law). Below is a summary of the most important corporate tax measures provided in the Law.

Tax incentives for investments in machinery

The Law provides tax incentives for investments in certain industrial assets (e.g. machinery and equipment included in Sec. 28 of the 2007 Ateco table). The incentive is equal to 50% of the value of the investments, which is determined as the amount due, in the case of purchase, or the cost for the grantor, in the case of financial leasing. For transactions undertaken in 2009, the tax incentive is granted with the setting-off of the income taxes (i.e. on June 2010). The incentive is revoked if the assets are transferred to taxpayers with a permanent establishment located outside the EU territory.

Incentive to small and medium businesses

Small and medium enterprises increasing their capital up to EUR 500,000, within the 6 months following the entry into force of the Law, are entitled to a 3% tax relief for 5 years.