BusinessItalyCOVID-19 Italy: Measures taken by the government

April 13, 2020by Tetra Consultants0

Due to the sudden halt of business caused by COVID-19, Italy government is introducing new measures to soften the economic devastation.

Covid-19

The key incentive-related measures for businesses includes the following:

Incentives for supply and production of medical devices

In order to ensure the sufficient production and supply of medical devices and personal protective equipment (including surgical masks), Italian government has Introduced grants and subsidised loans to qualifying manufacturing companies. These incentives will be available for application by 26 March 2020.

Grants to businesses for healthcare and security improvements

The National Institute for Occupational Safety (INAIL) has transferred EUR 50 million to Invitalia S.p.A. to support and ensure the continuity of companies productions processes with safety and security. Company’s which purchase equipment, including personal protective equipment will be able to apply for Grant to subsidise these expenditure. The objective of these incentives is to promote investment and training in occupational health and safety among micro, small, and medium sized enterprises and aimed at improving innovation solutions among these businesses.

Small Medium Enterprise guarantee fund

With effect 17 March 2020 guarantee fund for loans will be granted free of charge to the qualifying small and medium sized enterprise (SME) for a period of nine months. Other forms of guarantee may be supplemented for loans of real estate investment operation in the tourism, hotel and real estate sectors, if the loans met the duration of 10 years or are an amount exceeding EUR 500,000.

The Italian government is also increasing the fund available to SME (SME guarantee fund) by EUR 1.2 billion for the calendar year 2020.

“There are difficult months ahead. Our task is to create the conditions to live with the virus,” Roberto Speranza, Italy Health Minister

Tax incentive for sanitization costs incurred by business

The government has introduced tax credit for 50% of the costs of sanitization of business environments and work tool up to a maximum amount EUR 20,000 per company. This is aimed to aid the limit and prevention of the spreading of COVID-19 and promote sanitization of workplaces. The expected funding for these incentives is amounted to EUR 50 million for the fiscal year 2020. The implementation of these tax credit is expected to be no later than 30 days from 31 March 2020.

Tax incentive for rental costs incurred by business

A tax credit of 60% of the amount of the rental cost for March 2020 is introduced to limit the negative effects of prevention and containment measures relating to COVID 19. Buildings which are classified under cadastral category C/1 (shops and stores) are qualified for the above tax credit. Business (other than grocery stores, pharmacies and related) are able to utilise the credit to offset any kind of tax liability including VAT, withholding tax, corporate income tax, regional tax.

Italian Made fund

To further strengthen the promotion and support of internationalization, a “Made in Italy” fund has been introduced as well. The Campaign is aimed at internationalisation of Italy’s national economic system in the agri food sectors and other sectors affected by the Covid 19.

Improving and strengthening of Italy’s promotional activities;

Additional co-financing production initiatives is introduced through the signing of trade agreements with foreign markets.

A separate section has been created within the revolving fund to grant low interest loans to qualifying export companies. The objective of this is to assist these companies with trade expansion outside the EU. Non-repayable co financing of up to 50% of the loans granted are being offered under the program.

Contract fund development

The contract fund relating to development has been increased by EUR 400 million in 2020. The increase was targeted to keep the development contract facilitation desk open and encourage investment and implementation of development project.

The government acknowledges the significant importance of strengthening the country’s production structure and the need of implementing strategic and innovative development programs.

How to reduce operating costs amidst COVID-19 Italy

In dire times like this, it is important to keep your business overhead expenses minimal.  Tetra Consultants recommends our international clients to consider alternative measures to reduce the business overhead expenses. Some of these include restructuring your Italy business corporate structure, legally reducing your corporate and personal tax obligations and engaging cheaper corporate secretary, accounting and tax services.

Contact us now for a free consultation on how you can legally reduce your business expenses.

Tetra Consultants

Tetra Consultants is the consulting firm that works as your advisor and trusted partner in your business expansion. We tell our clients what they need to know, instead of what they want to hear. Most importantly, we are known for being a one-stop solution for our valued clients. Contact us now at enquiry@tetraconsultants.com for a non-obligatory free consultation. Our team of experts will be in touch with you within the next 24 hours.

Leave a Reply

Your email address will not be published. Required fields are marked *

Follow us on

Address

22 Sin Ming Lane #06-76 Midview City, Singapore 573969

©2010-2021 Tetra Global Consultants. All rights reserved.