The Italian revenue agency issued guidance concerning the 40% increase in depreciation that may be available with respect to investments in new tangible assets.
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.
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
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.