The decree provides a non-repayable grant for VAT-registered individuals, resident or established in Italy, who engage in business, artistic, or professional activities with revenues or fees not exceeding €10 million in the second tax period prior to the date the decree enters into force, or who generate agricultural income pursuant to Article 32 of the Consolidated Income Tax Code. To properly monitor these limits and the financial flows required to meet the application, it is recommended to consult the simplified accounting management requirements list , which is essential for proper reporting of business volumes.
Excluded subjects
The contribution does not apply to:
- to entities whose activity has ceased on the date of entry into force of the decree;
- to those who activated their VAT number after the entry into force of the same decree;
- to the public bodies referred to in art. 74 of the Consolidated Law on Income Tax;
- to financial intermediaries and holding companies pursuant to Article 162-bis of the Consolidated Law on Income Tax.
- Non-profit organizations
Non-profit organizations, including third sector organizations and civilly recognized religious entities, are also eligible for funding in connection with commercial activities. For more information on the regulations and registration requirements for these organizations, please consult the official guidelines from the Ministry of Labor and Social Policies .
Conditions
The contribution is due if the average monthly turnover/fees for 2020 is at least 30% lower than the average monthly turnover/fees for 2019. For this purpose, the date of the transactions is relevant.
Eligible entities
The decree provides for a non-repayable grant for VAT-registered entities, resident or established in Italy, who:
- carry out business, art or professional activities, with revenues or compensation not exceeding 10 million in the second tax period preceding the one in which the decree came into force,
or
- they produce agricultural income pursuant to art. 32 of the Tuir.
Excluded subjects
The contribution is not applicable to:
- to entities whose activity has ceased on the date of entry into force of the decree;
- to those who activated their VAT number after the entry into force of the same decree;
- to the public bodies referred to in art. 74 of the Consolidated Law on Income Tax;
- to financial intermediaries and holding companies pursuant to Article 162-bis of the Consolidated Law on Income Tax.
Non-commercial entities
Non-commercial entities, including third sector entities and civilly recognized religious entities, are also eligible for the contribution in relation to the performance of commercial activities.
Conditions
The contribution is due if the average monthly turnover/fees for 2020 is at least 30% lower than the average monthly turnover/fees for 2019. For this purpose, the date of the transactions is relevant.
Those who activated their VAT number starting January 1, 2019, are entitled to the contribution even if they do not meet the above requirements.
Contribution Amount
To determine the amount of the non-repayable contribution, the following percentage is applied to the difference between the average monthly turnover/fees for 2020 and the average monthly turnover/fees for 2019:
SALES | PERCENTAGE |
UP TO €100,000.00 | 60% |
OVER €100,000.00 AND UP TO €400,000.00 | 50% |
OVER €400,000.00 AND UP TO €1,000,000.00 | 40% |
OVER €1,000,000.00 AND UP TO €5,000,000.00 | 30% |
OVER €5,000,000.00 and UP TO €10,000,000.00 | 20% |
For those who activated their VAT number from 1 January 2019, the months following the month in which they activated their VAT number are relevant for the purposes of calculating the average.
Minimum and maximum contribution amounts
LIMITS ESTABLISHED BY THE LAW | |
MAXIMUM AMOUNT | €150,000.00 |
MINIMUM AMOUNT | Individuals: €1,000.00 Subjects other than natural persons: €2,000.00. |
Characteristics of the contribution
The contribution in question is not relevant for tax purposes, for Irpef, Ires and Irap purposes.
Methods of disbursement of the contribution, sanctions and controls
Article 25, paragraphs 9 to 14 , of the “Relaunch” decree ( Legislative Decree 19 May 2020, n. 34 , converted with amendments by Law 17 July 2020, n. 77 ) applies.
PRACTICAL PRESENTATION
By making an irrevocable choice, it is possible to request the full amount of the contribution or the recognition of a tax credit to be used as a set-off using the F24 form.
To receive the contribution, a specific request must be submitted to the Revenue Agency, certifying that the required requirements are met (for this purpose, an authorized intermediary may be used, pursuant to Article 3, paragraph 3 , of Presidential Decree No. 322 of July 22, 1998). The request must be submitted, under penalty of forfeiture, within 60 days of the start date of the relevant online procedure. A decision from the Revenue Agency will follow.