HYPER AND SUPER DEPRECIATION, RULES CHANGE

The MISE has published in the Official Gazette the Law of December 27, 2019 no. 160 which provides for the transformation of hyper-amortization and super-amortization for tangible assets and software into a Tax Credit. The stated objectives are to increase the pool of potential beneficiaries, speed up the time of use compared to the current system which is linked to the duration of depreciation of capital goods, and predominantly target the SME fabric. Super-depreciation is replaced by a 6 percent tax credit for the purchase of capital goods up to a maximum of two million euros. Hyper-depreciation is replaced by a tax credit for the acquisition of tangible 4.0 assets with two separate brackets and an expenditure ceiling reduced to 10 million euros: – 40 percent for investments up to 2.5 million euros – 20 percent for assets worth between 2.5 and 10 million euros. The Tax Credit for intangible assets Industry 4.0 (Software) is recognized to the extent of 15 percent of the cost, up to a maximum eligible cost limit of 700,000 euros The Technical Sworn Expert Opinion is mandatory for Investments exceeding 300,000 euros. The Tax Credit can only be used by offsetting in five equal annual installments starting from the year following the year in which the assets become operational. The Tax Credit can be combined with other facilities that cover the same costs, provided that such combination does not lead to the cost incurred being exceeded. The establishment of a tax credit in lieu of hyper-depreciation would provide access to the facility to all enterprises resident in the state. These in a nutshell are the new rules introduced with the publication of the new budget law and that in relation to our products are all applicable. We will go deeper into the topic with more articles and comparative examples to highlight the advantages of the new regulations in the coming weeks, our managers are in any case available for any clarifications. #weighthefuture