The latest publication of the National Council and the National Research Foundation for Accountants concerns the deductibility of financial charges highlighted in balance.
The document “Financial income and expenses for the 2023 and subsequent financial statements. Procedure for determining the deductible amount” provides the framework of regulatory provisions and some observations by professionals.
Where possible the accountants have proposed solutions operational solutions and fiscally sustainable.
Budgets: from the CNDCEC the document on the determination of the deductible amount
The National Council of Chartered Accountants and Accounting Experts (CNDCEC) with the Press release of 17 April 2024 announces the publication of the new document on the determination ofamount deductible in financial statements.
There publication by title “Financial income and expenses for the 2023 and subsequent financial statements. Procedure for determining the deductible amount” was created in collaboration with Accountants Research Foundation (FNC).
The document indicates the regulatory provisionsare provided observations and specify any “open points” for which clarifications are needed from the Revenue Agency.
In some places, recommendations have also been made operational solutions.
The tax regime of financial income and expenses is dealt with in the articles 61 and 96 of the TUIRwhich have undergone numerous variations over the years.
As stated in the document, the latest update of thearticle 96which entailed the overall revision of the regime, derives from the transposition of the ATAD 1 Directive (2016/1164) with effect from the tax period following the one in progress at December 31, 2018 (2019 for solar exercises). A rule that aims to encourage capitalization of companies.
To these were added, starting from 2016 financial statementsthe innovations introduced by the Civil Code (Legislative Decree no. 139/2015) with the consequent change in OIC accounting principles. Furthermore, with article 83 of the TUIR the “strengthened derivation”.
Deductibility of financial charges, the accountants’ document
In the current version (1 March 2024) of the strengthened derivation the businesses can actually be divided into three categories:
- IAS adopter subjects, with taxation based on the principle of “strengthened derivation” and other specific particularities;
- subjects (non-IAS adopters) other than micro-enterprises that have not opted for the preparation of ordinary financial statements, with taxation based on the principle of “enhanced derivation”, also defined as “subjects”OIC adopter”;
- micro-enterprises, with taxation based on the principle of “simple derivation”.
To determine the deductibility of expenses financial highlighted in balance, CNDCEC and FNC have prepared a working procedure for OIC adopter companies and for IAS/IFRS adopter companies, highlighting, where possible, the particular cases for real estate and industrial holding companies.
Each paragraph of the document illustrates the regulatory provisionspresents some “observations” on the topic and the indication of any “open points” which require clarification from the Revenue Agency. In some cases, some have been proposed operational solutions and fiscally sustainable.
Below is the full text of the document “Financial income and expenses for the 2023 and subsequent financial statements. Procedure for determining the deductible amount”.
- CNDCEC – Press release of April 17, 2024
- Financial income and expenses for the 2023 and subsequent financial statements. Procedure for determining the deductible amount
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