Next February 8th expires the deadline to submit the declaration of the investments sustained during 2020
Prepared by Vitalba Passarelli, Giovanni Marra and Francesca Errico
The so-called advertising bonus is a tax incentive introduced in 2018 aimed at supporting advertising investments. The measure has undergone several changes over the years, in relation to both eligible expenses and the calculation mechanism.
With specific regard to FY 2020, it is recognized a tax credit potentially equal to 50% of the value of such investments to enterprises, self-employed workers and non-commercial entities that realized advertising investments on:
- daily and periodical newspapers, including the online ones, which are registered with the competent Court or with the Register of Communication Operators or equipped with the responsible director; and/or
- local and national televisions and radio broadcasters, analogical or digital, not owned by the State, registered with the Register of Communication Operators.
In order to benefit from the bonus for investments realized in FY 2020, the taxpayers must:
- have submitted the “Communication to access the tax credit” (commented in our newsalert of the 4th September 2020), within the 1st and the 30th September 2020, containing the data of the investments already made or to be made in 2020. In any case, the electronic communications transmitted in the period between the 1st and the 31st March 2020 remained valid;
- file the “Substitute declaration related to the investments made in FY 2020”, within the 8th February 2021, to declare by self-certification the investments actually made in 2020 and the compliance with the bonus requirements.
The national budget allocated for 2020 is equal to 85M €, therefore it is worth noting that, as the requests exceed the national budget available, it will necessary to split the resources with a proportional distribution based on the investments actually made by applicants, as it happened in previous years.
Extension until FY 2022
Art. 1, par. 608 of the Budget Law 2021 introduced further changes to the advertising bonus regulation, extending its duration by two years until 2022 and limiting the eligible expenses.
Based on such changes, for FYs 2021 and 2022 to enterprises, self-employed workers and non-commercial entities it will be recognized a tax credit potentially equal to 50% of the advertising investments made only on daily and periodical newspapers, including the digital ones, within a maximum limit of 50M€.
Therefore, starting from fiscal year 2021, advertising investments made on local and national, analogical or digital televisions and radio broadcasters will no longer be eligible to such tax credit.
A particular point of attention will be the verification, for applicants, of compliance with the intensity thresholds provided for by the discipline of state aid subject to the so-called de minimis regime.
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For a deeper discussion, please contact:
PwC TLS Avvocati e Commercialisti
Director
PwC TLS Avvocati e Commercialisti
Senior Manager