The Italian Government, approving the Law n. 191/2023 (hereinafter also "the Law") has converted into law the Decree No 145/2023 (so-called "Anticipi" Decree) linked to the Budget Law for the financial year 2024. For a detailed analysis, please refer to our Tax Update No 11/2023.

Herewith an overview is presented of the main tax update introduced during the conversion phase.

1. Deadline extension for the s.c. "rottamazione-quater".

The payment terms related to the pending tax claim write-off (c.d. "rottamazione-quarter"), set forth by art. 1 § 231 of L. 197/2022, has been re-opened, by postponing to December the 18th 2023 the deadlines for payments expired on October the 31st and November the 30th, 2023.

2. Postponement of the deadlines for the voluntary repayment of the R&D credit: amendments.

With reference to the procedure of the voluntary repayment of the tax credit for research and development expenses set forth by art. 5 co. 7 - 12 of Legislative Decree 146/2021, art.5 of Decree No 145/2023 has been amended as follows:

  • the deadline for submitting the application of the R&D voluntary repayment is postponed from November 30th 2023 to July 30th 2024 (instead of June 2024);
  • the payment deadline for the lump sum or the first installment is postponed from December 16th 2023 to December 16th 2024;
  • taxpayers are allowed to revoke a voluntary repayment application, in case the due amounts have not been paid yet.

3. Employees' Fringe benefit – new calculation methods.

Starting from FY 2023 onwards, the Law has modified art 51 § 4 let. b) of the Italian Corporate Income Tax Code (hereinafter also ICITC), varying the method for determining the fringe benefit relevant for corporate tax purposes, in case of facilitated loan granted to the employees.

In particular, the fringe benefit shall be calculated as 50% of the difference between:

  1. the amount of the interest calculated by applying the official interest rate as of the expiry date of each installment or, in case of fixed interest rate, on the date when the loan is granted, and
  2. the amount of interest calculated by applying the actual interest rate.

Regardless the agreed maturity and currency, the provision of art. 51 § 4 let. b) of the ICITC applies to any kind of financing granted to the employees.

Exclusions: the following transactions shall not fall within the new calculation method:

  • the postponement of payment for considerations related to sold goods or rendered services by the employer.
  • loans granted before January 1st, 1997, where the specific cost criterion still applies;
  • loans with maturity below 12 months, granted under specific agreements with the workforce, to employees in redundancy payment regime or with s.c. solidarity contracts;
  • loans granted to employees victims of usury or extortion requests.

4. Amendments to the s.c. Music Tax Credit.

With reference to the Music Tax Credit, set forth by art. 7 of Legislative Decree 91/2013, related to companies operating in the phonographic sector, the maximum limit of the tax credit has been increased from 1.2 to 2 million euros in three fiscal years.

5. Confirmation of the NIC regime for tourist and short-term rentals.

The Law has confirmed the regulation related to the s.c. the National Identification Code (hereinafter also "NIC"). i.e. a mandatory national identification code to be assigned to each residential real estate property destined to (i) touristic rental, (ii) short-term rental, (iii) tourist accommodation facilities, qualifying both as hotels and not.

In addition to the NIC, the new regulations set forth new obligations regarding the safety of the facilities in the relevant premises.

6. Electronic invoicing and electronic payments - news.

In terms of electronic invoicing and certification of receipts, the Law has introduced two main news:

  1. companies can now access to the consultation service of the electronic invoices raised to end-consumers, without the prior need for a specific application (art. 4-d § 4 of Legislative Decree 145/2023);
  2. cancellation of the obligation to perform the electronic filing of the daily receipts to the National Health System, starting from January 1st, 2024 (art. 4-d, section 3 of Legislative Decree 145/2023).

Finally, with reference to VAT,

  • under art. 4-quater of the Law, the aesthetic surgery health services are now VAT exempted;
  • under new art. 4-ter, food supplements mentioned by the Legislative Decree 169/2004, are now subject to the 10% VAT rate.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.