As there are no two different benefits, the South bonus and the tax credit scheduled for Special Economic Zones they cannot be cumulated.
The legislation, in fact, provides for a enhancement of benefits for investments made during the last year in the SEZs, but not the possibility of obtaining a different support measure.
This was clarified byRevenue Agency in the response to question number 94 of 2024.
Southern Bonus cannot be cumulated with the ZES tax credit: clarifications from the Revenue
The opportunity to shed light on the relationship that binds i two instruments comes fromanalysis of a practical case.
The protagonist is a company that has benefited from South bonus provided for by the 2016 Budget Law for some investments made during the last year and turns toRevenue Agency to check the possibility of obtaining for the same purchase as systems, equipment and machinery also of tax credit implemented for SEZs, Special Economic Zones.
The operational headquarters subject to the investments, in fact, falls within the perimeter of the SEZs. And the company, in support of its position, refers to paragraph 102 of article 1 of law no. 208 of 2015 which provides for the cumulation of the Southern Italy tax credit with Help de minimis and with other state aid that they have as their object the same costs eligible for the benefitprovided that cumulation does not result in exceeding the highest aid intensity or amount permitted by EU rules.
But, with the response to question number 94 of 17 April 2024the Financial Administration places its veto:
“On the basis of the literal content of the provisions relating to the ZES tax credit and those concerning the Southern Italy tax credit (respectively, articles 5 of legislative decree no. 91 of 2017 and 1, paragraphs 98 et seq., of the law no. 208 of 2015), it emerges that the ZES tax credit, contrary to what the Company believes, cannot be considered a benefit “further” compared to the Southern Italy tax credit which is ‘”added”‘ to the latter, for the same investments”.
It is clarified that the rule provides for a South bonus enhancement to which one is entitled investments in Special Economic Zones but not an additional benefit.
It follows that the two tools cannot be cumulated: they cannot, in fact, be considered two distinct bonuses but they represent a“only concessionmodulated differently in relation to the territorial areas in which the investments taken into consideration by the relevant provisions are carried out”.
The table shows the regulatory passages covered by the ruling.
| South Bonus | Facilitation | Limits | Territories affected |
|---|---|---|---|
| Law no. 208 of 2015 (article 1, paragraph 98 et seq.) | Tax credit to the maximum extent permitted by the Regional Aid Charter 2014-2020 C(2014) 6424 final of 16 September 2014, as amended by decision C(2016) 5938 final of 23 September 2016 | 3 million euros for small businesses, of 10 million euros for medium-sized companies and 15 million euros for large companies | Campania, Puglia, Basilicata, Calabria, Sicily, Sardinia, Molise, Abruzzo |
| SEZ tax credit | Facilitation | Limits | Territories affected |
|---|---|---|---|
| Legislative Decree no. 91 of 2017 (articles 4-5) | Enhancement of the Southern Bonus | In relation to investments made in SEZs, the Southern bonus is commensurate with the share of the overall cost of the assets acquired by 31 December 2023 up to the maximum limit, for each investment project, of 100 million euros | geographically delimited and clearly identified area on the territory also consisting of non-territorially adjacent areas with a functional economic connection and with at least one port area |
Below is the full text of the document released by the Revenue Agency on 17 April 2024.
- Revenue Agency – Response to question number 94 of 2024
- Cumulative Southern Bonus and ZES tax credit: they form part of a single benefit
Tags: Southern bonus ZES tax credit cumulated form part single concession
