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    Tuesday 25 June 2019

    Italy launches Industrial Plan 4.0

    The Italian Government has published details on its Industrial Plan 4.0, a new national plan offering tax incentives to the industrial sector to encourage competitiveness and investment in innovation.

    Italy’s Industry Plan 4.0, launched in February 2017, is seen as a great opportunity to boost investment in new technology and attract foreign investors.

    In 2016, almost 6,500 companies with foreign shareholders (half of the overall foreign presence in Italy) were based in Lombardy. The territory is strongly linked to the plan as investors are attracted to its well-established manufacturing and financial infrastructure and skilled workforce. Expo 2015 contributed to its improved international visibility. 

    Key Industry 4.0 tax incentives include the following:

    Hyper and super-depreciation: This is available to companies investing in new assets, such as software and IT systems for the technological and digital transformation of production processes. Hyper-depreciation provides a 250% amortisation rate for investments in 4.0 technologies, while super-depreciation offers a one-year extension of super-depreciation – a flat rate of 140% for all investments.

    Credit to innovation (New Sabatini Law): There is a 30% tax deduction for investments of up to €1m in innovative start-ups and SMEs. It applies to companies that require bank financing for investment in new capital goods, machinery, equipment and digital technologies.

    R&D tax credit: A tax credit of 50% of R&D investments made between 2017 and 2020 will be available in order to stimulate private expenditure on R&D to innovate products and processes.

    Patent box: A 50% deduction of the net income derived from the use of intangible property, such as patents, trademarks, industrial designs, know-how and copyrighted software. The benefit is given on condition that the taxpayer leads R&D activities related to the development and maintenance of intangible assets.

    Tax deduction on investments in innovative start-ups: A 30% tax deduction on investments in venture capital is aimed at supporting innovative companies at all stages of their life cycle.

    For more information, contact:

    Dirk Prato 
    Hager & Partners, Italy
    T: +39 (02) 7780711
    E: dirk.prato@hager-partners.it

    Gian Luca Nieddu
    Hager & Partners, Italy
    T: +39 (02) 7780711
    E: gianluca.nieddu@hager-partners.it


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