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[July 9th, 2019] Tax Newsletter - Decree No. 34/2019 (Decreto Crescita)

The Law converting Legislative Decree No. 34 dated April 30, 2019 (“Decreto Crescita”) was published in the Official Gazette No. 151 dated June 29, 2019. Here below is a brief summary of the main tax measures concerning companies.

Provisions for direct taxes
Deadline extension for submitting IRES and IRAP tax returns
The deadline for the electronic filing of IRES and IRAP tax returns has been postponed to the end of the eleventh month following the end of the fiscal year.   
This deferral already applies to 2019 IRES and IRAP tax returns. Therefore, for taxpayers adopting the calendar year, IRES and IRAP tax returns must be submitted by December 2, 2019 (November 30 falls on a Saturday).
Deadline extension of payments for taxpayers with activities for which ISA (“Indici Sintetici di Affidabilità”) have been approved
The deadline for payments resulting from IRES, IRAP and VAT tax returns has been extended to September 30, 2019.
2019 “Super-amortization” provision
The so-called “Super-amortization” has been reintroduced with a 30% depreciation increase for investments in new tangible assets, up to a limit of €2.5 million, made from April 1 to December 31, 2019 (by June 30, 2020, on condition that by December 31, 2019 the relative order is accepted by the seller and at least 20% of the acquisition cost has been paid).
Reduced taxation on reinvested earnings - “Mini IRES
The Decree has rewritten the discipline of the so-called “mini IRES”. The benefit consist in a lower IRES taxation of the taxable income related to the profits (made from the current year as at December 31, 2018) allocated to reserves, other than those not available, within the limits of the net worth increase.  
The IRES rate reduction is equal to 1.5% for the fiscal year following the one as at December 31, 2018 and will increase progressively up to a reduction, when fully operational, of 4% starting from the fiscal year following the one as at December 31, 2022.
For companies participating in the tax group consolidation, the amount on which the reduced rate is applied is used by the consolidating company for the purposes of the IRES liquidation and up to the taxable income amount.
VAT provisions
Deadline for invoices issue
As of July 1, 2019, the immediate invoice may be issued within 12 days from the transaction being been carried out.
Filing of the VAT liquidations data informative Report
The Decree establishes the possibility to file the IV quarter VAT liquidations data informative Report with the annual VAT return, provided that the latter is submitted by February of the year following the one in which the year ends.  
Declaration of intent
Simplifications for declarations of intent are introduced from 2020 onwards and the related penalties are tightened up.
Disposal of quarterly VAT credits
The Decree introduces the possibility of disposing quarterly VAT credits claimed for reimbursement starting from January 1, 2020.
Telematic transmission of fees
For those who carry out retail trade and similar activities, the obligation of telematic transmission of fees within 12 days from the execution of the transaction has been established.
Assessment and Litigation
Obligation to invitation to an adversarial process.  
The decree has introduced, in the cases of assessment without being heard (“accertamento a tavolino”), the obligation of a prior invitation for an adversarial process for assessment notices issued as of July 1, 2019.
This obligation shall not apply in particular cases (e.g. in the event of delivery of the tax audit report “Processo verbale di constatazione” by the tax officer).
Authentic interpretation rule for partial voluntary settlement procedure 
The Decree establishes that the application of voluntary settlement procedure (in relation to the taxes administered by the Revenue Agency) in a partial/late manner is finalized provided that certain conditions are met.
Cancellation of tax records (so-called “Rottamazione dei ruoli”) and total debt clearance (so-called “Saldo e stralcio dei debiti”)
The deadline for submitting the application is postponed to July 31, 2019 for
  1. facilitated settlement (“definizione agevolata”), and
  2. settlement to total debt clearance for taxpayers in difficulty
entrusted to the Collection Agents from January 1, 2000 to December 31, 2017.
Other news
Aggregation Bonus
For taxpayers resulting from the extraordinary transactions of merger, demerger and business contribution carried out from May 1, 2019 to December 31, 2022, for the purposes of corporate income tax and IRAP, the higher value attributed to goodwill and that attributed to tangible and intangible fixed assets is recognized, for a total amount not exceeding € 5 million and provided that certain conditions are met.
Incentives for building enhancement
In order to promote a process of urban regeneration, the Decree has provided for an advantage in relation to registration, mortgage and cadastral taxes that applies in a fixed amount (€ 200 each) for transfers of entire buildings carried out in favor of real estate construction and renovation companies from May 1, 2019 to December 31, 2021, if, within 10 years from purchase, the buyer provides for the (i) demolition, (ii) reconstruction or carries out extraordinary maintenance or conservative restoration and renovation or building restructuring and (iii) subsequently disposes of the building, even if divided into several real estate units, provided that the disposal concerns at least 75% of the volume of the new building.
Increase in the IMU’s deductibility rate
The IMU's deductibility rate for IRES purposes is progressively increased. In particular, it has been set at 50% for the fiscal year following the one at December 31, 2018 and it will increase up to 100% for the fiscal year following the one at December 31, 2022.
Deadline for submitting IMU/TASI return
The deadline for submitting the IMU/TASI return has been postponed to December 31 of the year following the one in which the condition for taxation took place.
Buildings constructed and intended for sale by the builder are exempt from TASI
The Decree has provided, with effect from January 1, 2022, for the exemption from TASI for buildings constructed and intended for sale by the construction company, as long as this situation remains unchanged and, in any case, they are not leased.
Disclosure of public funds
Companies must provide appropriate information in the Notes to the financial statements and in the consolidated financial statement in relation to grants/contributions, in cash or in kind, not of a general nature and not of a remunerative or compensatory nature, actually paid by the Public Administrations.
Companies preparing the financial statements in abbreviated form fulfil this obligation by publishing these amounts and information on their website by 30 June of each year.
Electronic accounting records
As from June 30, 2019, accounting records can be kept with electronic systems provided that, in case of inspection, they turn out to be updated on the aforesaid electronic systems and are printed out following the request of the inspectors and in their presence.
Virtual stamp duty on electronic invoices
With reference to invoices sent from January 1, 2020 through the Exchange System, the Revenue Agency will verify the payment of stamp duty and will integrate the electronic invoices that do not have it. If the stamp duty, as established by the Revenue Agency, is not paid, the penalty of 30% of the unpaid amount will be applicable.

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