Italy: Tax-related measures providing relief for businesses and employment (COVID-19)

Relief for certain industry sectors, VAT and delayed plastics tax

There could be amendments made during the legislative conversion process.

A law decree introduces additional tax-related measures as relief and support for businesses and employment-related provisions as a response to the coronavirus (COVID-19) pandemic.

Decree Law no. 73 (25 May 2021) must be converted into law within 60 days of its publication in the official gazette, and it is possible there could be amendments made during the legislative conversion process.

Among the tax measures in the law decree are those concerning:

  • Relief for the textile and fashion industry and for other economic activities that have been particularly affected by the COVID-19 pandemic emergency
  • A delay to the effective date of the “plastics tax” until 1 January 2022
  • Changes to the value added tax (VAT) rules regarding bad debt relief
  • Amendments to the annual limit for offsetting VAT credits
  • Changes to the rules on the tax credit for new capital goods
  • Employment-related relief including an extension of the freeze on redundancies through 31 December 2021, additional wage subsidy measures, and an extension of the special wage guarantee for business terminations

Read a June 2021 report [PDF 283 KB] prepared by the KPMG member firm in Italy


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