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.