With particular reference to this last provision, the legislator intends to promote the carrying out of economic activities in the territory of the State through a tax incentive consisting in the detaxation equal to 50% of the taxable income for income tax purposes (IRES and IRAP). The incentive, from a subjective point of view, is aimed at non-EU and non-EEA companies that transfer their economic activities to Italy. In detail, the rule provides that ‘the income deriving from business activities and from the exercise of arts and professions exercised in an associated form carried out in a country not belonging to the European Union or the European Economic Area ‘shall not contribute to forming the taxable income for the purposes of income tax and the value of net production for the purposes of the regional tax on productive activities for 50 per cent of the relative amount‘. Only activities that have not already been carried out on Italian territory in the 24 months preceding their transfer can benefit from the favourable regime.
The relief applies starting from the tax period in progress at the time of the transfer of the economic activities into the territory of the State and for the following five tax periods. The benefit, under the current formulation, will cease to apply if, during the period in which the relief is granted or in the five tax periods following, the beneficiary transfers, even partially, the activities back to a non-EU or EEA country. In this case, a “recapture” system is provided for the taxes not paid by the taxpayer during the preferential regime.
In order to obtain the tax incentive, the beneficiary is required to maintain separate accounting records that allow for the verification of the portion of income and the value of net production eligible for the tax incentive.
The ‘reshoring’ mechanism will apply as of the 2024 tax year, subject to authorisation by the European Commission pursuant to Article 108 TFEU.
The discipline on ‘reshoring’ certainly constitutes an attractive incentive for companies wishing to relocate to Italy and thus an excellent system for the attraction of the relevant income in Italy.
The firm, through its dedicated teams, will continue to monitor future developments in the discipline, remaining at the disposal of those interested in obtaining further information and specific insights.
