Account Saving Pressure: The government is also offering advance communications for Tax Credits for Transformation 4.0 plan

As part of the so-called “savings account” decree approved by the Council of Ministers on March 26, the government is implementing a comprehensive crackdown on tax breaks in order to keep spending under control.

If the main objective of the measures is clearly super-reward, whereby all remaining cases of credit transfer are eliminated with a discount on the invoice, other tax breaks also ending under the government pivot, including those provided by the Transformation 4.0 plan, remain in effect. Until 2025, it is R&D, Innovation and ACE activities, for which only the credit can still be transferred.

Introducing Advance Communications for Transition 4.0

In particular, the rule established by the government in the Decree-Law which includes “urgent measures in relation to tax exemptions” stipulates, as explained by Palazzo Chigi, “the introduction of measures aimed at obtaining more information related to the implementation of eligible interventions” aimed at To “ensure adequate and timely knowledge of the economic and financial quantities associated with the facilitation measures covered by the decree.”

Let's try to read between the lines in the government text. Currently, access to the tax credit provided for in the Transformation Plan 4.0 is fully automatic: once the requirements set by law are met, the tax credit is reimbursed in F24 (in three annual installments). The company is responsible for only one annual “after” connection, the lack of which is not yet subject to penalties.

The new rule instead imposes a new burden on companies aspiring to benefit from the incentive: those intending to benefit from the credit must report the relevant amounts in advance, on pain of confiscation. It will also have to do so for investments already underway.

In detail, companies must declare in advance electronically “the total amount of investments, the assumed distribution of the loan over the years and the related use that they intend to make as of the date of entry into force of this legislative decree.”

Standard text

The following is the text required by the law (post-Cabinet draft):

Measures to monitor Transformation 4.0

1. For the purposes of using the tax credits for investments in new capital goods referred to in Article 1, paragraphs 1057-redundant 1058-Third, of Law December 30, 2020, n. 178, tax exemptions for investments in the field of research, development, technological innovation, design and aesthetic creativity activities referred to in Article 1, paragraphs 200, 201 and 202, of the Law of December 27, 2019, n. 160, including technological innovation activities aimed at achieving digital innovation 4.0 and the environmental transformation goals referred to in paragraph 203, fourth sentence, 203-quinquiesE 203-sexies From the same Article 1 of Law No. Under Law No. 160 of 2019, companies are required to report in advance electronically the total amount of investments, the assumed distribution of credit over the years and the related use that they intend to make as of the date of entry into force of this Decree-Law. The report will be updated upon completion of the investments referred to in the first period. Electronic notification of the completion of investments is also carried out for the investments referred to in the first period completed starting from January 1, 2024 until the day before the date of entry into force of this legislative decree. The communications referred to in this paragraph are carried out on the basis of the model approved by the Administrative Decree of October 6, 2021 pursuant to Article 1, Paragraph 191, Fourth Period, of the Law of December 27, 2019, n. 160. For the purposes referred to in this article, by specific directive decree of the Ministry of Business and Made in Italy, the necessary amendments have been made to the Decree of October 6, 2021, also with regard to the content, methods and conditions of sending the communications referred to in this paragraph.
2. The Ministry of Business and Made in Italy shall transmit monthly to the Ministry of Economy and Finance the data referred to in this article necessary for the purposes of control referred to in Article 17, paragraph 12, of Law No. 31 of December 2009. 196.
3. With regard to investments in new capital goods referred to in Article 1, paragraphs 1057-redundant 1058-Third, of Law December 30, 2020, n. 178, relating to the year 2023, the ability to set off accumulated and not yet used appropriations is subject to the communication referred to in Article 1, paragraph 191, fourth sentence, of the Law of December 27, 2019, n. 160.