By Vitalba Passarelli, Giovanni Marra and Vanessa Zichichi
Advertising tax credit: eligible investments and deadlines for filing the request
Following the amendments introduced by Article 67, par. 10, of Legislative Decree 25 May 2021, no. 73, converted with amendments by Law 23 July 2021 n. 106, the “derogation regime” introduced in 2020 for the so-called Bonus Advertising was extended for the tax periods 2021 and 2022, and was also extended to advertising investments made on local and national, analog or digital televisions and radio broadcasters, excluding those owned by the State.
Therefore, the tax credit for advertising expenses incurred in 2021 and 2022 will be calculated in the single measure of 50% of the investments made on:
- journals, newspapers and periodicals, published in both paper and digital versions;
- local and national televisions and radio broadcasters, analog or digital, excluding those owned by the State.
Therefore, the requirement of a minimum increase of 1% of the advertising investment, compared to the investment of the previous year, for access to tax breaks, is no longer required.
In consideration of these change, the Presidency of the Council of Ministers – Department for Information and Publishing has communicated through the appropriate “news” channel on its website a further delay in the time window for filing the electronic request for access the benefit, which must now be completed by 31 October 2021.
Any bookings already made in the last month of March remain valid. However, considering the various changes that have occurred, it is advisable to carry out a new analysis of the advertising investments in course in 2021 and make a new booking, by the end of the month, which takes into account the more “broader” scope of the incentive in terms of eligible expenses.
As in previous years, it will then be necessary to carry out, during the month of January 2022, the final communication of the eligible expenses actually incurred, and to wait until March for the allocation of the available national budget, which for FY 2021 amounts to 90 million euros.
Tax credit for increase of final warehouse inventories for the textile and fashion sector
With art. 48 bis of Legislative Decree 19 May 2020 n. 34 (so-called Relaunch Decree), as converted by Law no. 77, a new tax credit was introduced with the aim of limiting the negative effects deriving from the prevention and containment measures adopted for the epidemiological emergency from COVID19 on final inventories, limited to FYs 2020 and 2021. Such tax credit is aimed only to enterprises operating in the textile and fashion industry, footwear production and leather goods (textile, fashion and accessories sector).
The tax credit is equal to 30% of the incremental value of the final inventories – as provided for in art. 92, par. 1, TUIR – compared with the average of the same value registered in the three tax periods prior to that of the benefit. The criteria for the valuation of inventories used for the eligible FY must be homogeneous and consistent with that of the comparing periods.
For enterprises with certified financial statements, the checks will be carried out based on what is indicated in the financial statements, while enterprises not subject to statutory audit and without a board of statutory auditors must obtain a certification of the consistency of final warehouse inventories, issued by a statutory auditor or by a statutory auditing firm.
The tax credit can only be used in compensation pursuant to art. 17 of Legislative Decree 9 July 1997, no. 241, in the tax period following the one in which incremental inventory is occurred and it is applied in compliance with the limits and conditions set out in Com. 1863 (final) of 19 March 2020, of the European Commission, containing the so-called “Temporary framework for state aid measures to support the economy in the current emergency of COVID19”.
According to the Legislative Decree 25 May 2021 no. 73 (so-called Sostegni Bis Decree), as converted by Law 23 July 2021, n. 106, a national budget of 95 million euros were made available for the incentive for 2021 and 150 million euros for 2022.
With the recent decree of 27 July 2021, published in the Official Gazette on 29 September 2021, the list of Ateco codes for enterprises entitled to the tax credit at hand was made public, namely the following:
- 13.10.00; 13.20.00; 13.30.00; 13.91.00; 13.92.10; 13.92.20; 13.93.00; 13.94.00; 13.95.00; 13.96.10; 13.96.20; 13.99.10; 13.99.20; 13.99.90; 14.11.00; 14.12.00; 14.13.10; 14.13.20; 14.14.00; 14.19.10; 14.19.21; 14.19.29; 14.20.00; 14.31.00; 14.39.00; 15.11.00; 15.12.01; 15.12.09; 15.20.10; 15.20.20; 16.29.11; 16.29.12; 20.42.00; 20.59.60; 32.12.10; 32.12.20; 32.13.01; 32.13.09; 32.50.50; 32.99.20.
With a subsequent provision of the director of the Revenue Agency, to be issued soon, terms and compliance fulfillment for the fling will be established, as well as the regulation for monitoring the use of the tax credit and compliance with the spending limits.
For a deeper discussion, please contact:
PwC TLS Avvocati e Commercialisti
PwC TLS Avvocati e Commercialisti