Italy: Additional 40% depreciation for investments | KPMG | GLOBAL

Italy: Additional 40% depreciation for investments in new tangible assets

Italy: Additional 40% depreciation for investments

The Italian revenue agency issued guidance concerning the 40% increase in depreciation that may be available with respect to investments in new tangible assets.


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A tax measure in the 2016 budget law provides a tax benefit of a 40% increase in the depreciable base of new tangible assets for income tax—corporation income tax (IRES) and individual income tax (IRPEF)—purposes. The tax benefit does not apply for regional tax (IRAP) purposes. In effect, there is a 140% basis for depreciation purposes, thereby allowing greater depreciation deductions and lease payments.

Additional depreciation guidance

The guidance issued by the tax authorities—Circular no. 23 (26 May 2016)—sets forth details concerning the tax benefit, and includes information about who can benefit, which assets qualify, the effective date, and how the new provision operates.


Read a June 2016 report [PDF 196 KB] prepared by the KPMG member firm in Italy: Clarifications on the extra depreciation of certain tangible assets

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