The Italian Revenue Agency takes stock of tax incentives and innovations related to Industry 4.0, contained in the 2019 Budget Law: in fact, a circular was issued to clarify some of the main issues, including the new hyper-amortization regulation.
The Italian Government’s Economic Maneuver approved at the end of 2018 and the new tax incentives aim to support business investments in training and to promote their technological and digital transformation according to the logic of automation, and therefore more generally to the Industry 4.0.
Industry 4.0 tax breaks: hyper-amortization
The circular issued by the Italian Revenue Avenue explains the main tax incentives for Industry 4.0. One of these is the hyper-amortization: in short, it is an overestimation of the investments made by companies to purchase new instrumental goods and intangible assets functional to the technological and digital transformation of production processes.
Hyper-amortization may be applied to investments made by 31 December 2019 or by 31 December 2020, provided only if the order is accepted by the supplier by 31 December 2019 and, at the same time, if an advance of 20% at least has been paid.
To take advantage of the tax benefits provided for in the 2019 Budget Law, the beneficiary company must be in Italy.
Industry 4.0 tax incentives: the confirmed aspects
The Budget Law 2019 also confirmed the 40% increase for investments in intangible assets, such as software, related to investments in 4.0 material assets. It is intended, in particular, for companies that benefit from hyper-amortization. The costs of access fees to intangible assets through cloud computing solutions are also subject to such tax benefits, which are fundamental in an Industry 4.0 perspective.
Another confirmation concerns the tax credit for the development and research and the 4.0 training. In the first case, as specified by the Italian Tax Collection Agency, it will be possible to take advantage of the credit only after the accounting documentation of the expenses has been certified.
The tax credit for training, then, does not concern the ordinary and periodic activities necessary for the company to comply with the rules on health and safety, environmental protection or other, but all those training interventions implemented for the technological and digital transformation.
Do you want to take advantage of tax breaks and improve the digitization of your company through our Industry 4.0 software? Contact GP Progetti’s specialists for more information.
Manufacturing Execution System (MES) means a computerized system that manages and controls the productive function in the company. MES 4.0 software creates links between the ERP and the machines and it governs and automates the entire production process. The main feature of MES 4.0 is in fact the ability to align production with business management, bridging the gap between planning and what is produced.
The MES in cloud proposed by GP Progetti offers the advantage of not requiring a dedicated infrastructure in the individual factories of a company that has, for example, more locations that need to be coordinated with each other.
What does a MES 4.0 software do?
The operations and functions performed by a MES 4.0 in cloud software are:
- Data collection
- Management, monitoring and control of production
- Traceability of product and machine status
- Detection and analysis of machine parameters
A Manufacturing Execution System aligns and coordinates business management with production, making each phase of the process more efficient considering the available resources, i.e. operators and machinery. The goal of this management is to optimize production for maximum efficiency. Furthermore, another indispensable requirement of MES 4.0 software is the ability to integrate with information systems already in use in the company, such as the ERP (Enterprise Resource Planning).
MES 4.0 software improves production management
A tool that collects useful data for defining a production strategy is needed to coordinate and optimize production.
How does production management improve with MES 4.0 software?
- Constant production control to reduce waste
- Stock management in real time
- Optimization of the exploitation of production resources
Supervising the production process means, for the company, always having costs and resources under control by relying on a single tool that puts machines, people and systems in communication.
Do you want to improve production management with MES 4.0 software? Discover all the advantages of this tool by contacting us for a meeting.