ACE: coefficient reductions confirmed
With the final approval of the Conversion Bill of DL 50/2017, the rules of ACE (aid to economic growth) have been changed again.
The Italian legislator confirmed that must be considered changes in equity capital from the year 2011 onwards for the calculation of the tax benefit, without needing to consider only changes of the current year and the previous four years.
However, the coefficient to be applied to the net change in equity was further decreased in order to calculate the net income. This coefficient, reduced by L. 232/2016 to 2.3% for 2017 and 2.7% since 2018, has been setted at 1,6% for 2017 and at 1,5% as of 2018.
The Decree Law didn’t acted on the coefficient for 2016 (4.75%), which remained unchanged.
The last paragraph of Article 7 of DL 50/2017 provided for the recalculation of the installments for the year 2017. By 30 June 2017 the settlement of 2016 will must be paid and a “virtual” tax for 2016 will have to be recalculated with the coefficient of 1,6%. In this way tax installments of 2017 will be redefined correctly.