Government measures in key jurisdictions 5th edition - Flipbook - Page 79
Italy
Further, with reference gyms, swimming pools and sports facilities lease agreements,
the sport activities suspension set forth during the emergency shall be assessed as
factor of “unbalance” between the interests under the agreement, so triggering the
relevant remedies provided for under the Italian Civil Code (such as fee reduction).
Courts resumed the ordinary course of business starting from 12 May 2020. At least until
the end of the state of emergency (currently set for 30 April 2021) the activity of the
judiciary is still managed mainly though virtual and written hearings and remote judicial
activities.
Litigation
Are the courts
operating?
In addition, starting from 30 June 2020 parties are required to engage in compulsory
mediation as a pre-condition to commencing Court proceedings for contractual disputes
where the compliance with the emergency regulations issued in relation to the Covid-19
pandemic is at stake as a reason for the non-fulfilment of contractual obligations.
Tax
•
Tax credit for rental fees: A tax credit equal to 60% of monthly rental fees paid in
March, April, May and June 2020 (or until 30 April 2021 for entities active in the touristic
sector) is granted to enterprises and self-employed workers in connection with rental
of real estate assets. This tax credit is available subject to the following conditions: (i)
the taxpayer had a total turnover in 2019 not higher than Ä5 million, (ii) the taxpayer
suffered a turnover reduction of at least 50% compared to the relevant months in 2019,
(iii) such monthly fees have been fully paid in 2020. This tax credit is limited to 30% if
the real estate is available by means of a going concern lease agreement or similar
mixed contracts. A tax credit equal to 20% of the rental fees is also granted to entities
exceeding the Ä5 million threshold (in such case, the tax credit is limited to 10% in case
of going concern lease). The tax credit can be used to set off tax liabilities, can be
assigned to third-parties or can be transferred to the lessor as consideration for the
rental fee. For certain entities affected by Covid-19 restrictions (such as restaurants,
bars, etc.) such tax credit is also available for the period between October and
December 2020, regardless of the aforementioned total turnover threshold mentioned.
•
Revaluation of real estate assets for hotelier activities: taxpayers that carry out
hotelier activities can step-up to the fair market value the tax costs of real estate assets
used in their business activity. No substitutive tax is due. This measure allows to
minimize the taxable capital gain upon disposal of the above assets.
•
Tax credit for capital increase of medium-size enterprises: Taxpayers can benefit
from a tax credit equal to 20% of any capital increase (up to Ä2 million) in certain
qualified Italian-based companies. In addition to the above, the qualifying Italian-based
companies increasing their capital are also themselves entitled to a tax credit (up to a
maximum of 30% of the capital increase or to 50% in case of resolution and payment of
the capital increase in the first semester of 2021) equal to 50% of the net operating
losses exceeding 10% of their net equity. The total amount of benefits is capped
to overall Ä800,000 per company. The tax credit applies subject to the following
conditions: (i) the capital increase is resolved and fully paid between 20 May 2020 and
31 December 2020 (or in the first semester of 2021, but in this case only the beneficiary
company is entitled to receive the tax credit), (ii) the companies resolving the capital
increase had, in 2019, a turnover between Ä5 million and Ä50 million (on a group
consolidated basis) and suffered a turnover reduction during March and April 2020 of
at least 33% compared to the same months of 2019 (on a group consolidated basis).
Has any new
legislation been
introduced in light
of Covid-19?
Government measures in key jurisdictions
79
