Prepared by Pasquale Salvatore, Raimondo Rossi, Sara De Vincenzi
Among various measures proposed in the context of the conversion into law of the Relaunch Decree (DL 19.5.2020 n. 34, to be converted into law within 18.7.2020) it has been discussed the possible enlargement of the so called “Sport Bonus” for donations aimed at fostering renovation and construction of public sport stadiums, by means of the increase of the tax credit available in the hands of the donor and the overall amount of public resources devoted to the favorable measure.
In the awaiting of the political debate about the proposal, it has been reported the main features of the Spot Bonus currently in force.
Conditions to benefit from the Sport Bonus
The Sport Bonus is granted to the person (individual, non-commercial entity or company) who executes a donation in cash for the maintenance, renovation and construction of public sports stadiums. The donation may also be addressed to the club deploying the stadium under a concession with a public body.
The Sport Bonus, originally limited to 2019, has been extended to donations made in 2020, provided that a traceable payment instruments, such as bank transfer, has been used (art. 1, co. 621-626, L. n. 145/2018 and art. 1, co. 177-179, L. n. 160/2019).
The bonus available
The Sport Bonus is granted through a tax credit in the hands of the entity that executes the donation and is equal to 65% of such donation. The tax credit shall not exceed 1% of the company’s annual revenues, or 20% of taxable income in case the donor is an individual or a non-commercial entity.
In case of companies, once the eligible tax credit has been determined, it must be divided into three equal annual instalments, to be used exclusively to offset taxes due by the donating company.
The tax credit cannot be cumulated with other forms of incentive arising from the same donation. The tax credit is not relevant for Italian Corporate Income tax and Regional tax purposes.
If, following the concession of the tax credit, the latter is recognized as not available, the company shall pay back the tax credit along with applicable penalties and interests for late payment.
Public resources devoted to the Bonus
The total amount allocated to finance the Sport Bonus is € 13.2 million for donations made in 2020.
The Bonus is recognized in 2 “windows” during 2020, based on the date in which the request for the Bonus has been made. The resources available in each “window” are equal to € 6.6 million (art. 6, DPCM 30.4.2019).
The resources are provided based on the time of the request and up to the total amount available in each “window”.
The request for the Sport Bonus
The request shall be filed by the donating company through specific documentation, that includes a declaration of acceptance by the beneficiary of the donation, the amount to be paid, a description of the actual works to be carried out. The request shall be filed through certified email to be sent to the Sport Office held by the Italian Prime Minister.
In the official form provided to formalize the request, it is expressly reported that the Sport Bonus is not automatically available, as the overall resources available are allocated based on the timing of the request and up to the total amount available in each “window”.
The amendment contained in the Relaunch Decree
In order to broaden the scope of the Bonus, upon conversion into law of the Relaunch Decree (DL 19.5.2020 n. 34, to be converted within 18.7.2020) it has been proposed to increase the measure of the tax credit from 65% to 80% and to raise the overall amount of public resources devoted to the Bonus.
The actual implementation of the proposal could be verified once the conversion of the Decree will be concluded.
TLS can assist with the procedure to assess the eligibility for the Sport Bonus and with the actual filing of the request, as well as in the subsequent phases of the actual benefit from the tax credit granted.
For a deeper discussion, please contact:
PwC TLS Avvocati e Commercialisti
PwC TLS Avvocati e Commercialisti