• New limits on tax compensations

    At the Article 3 paragraph 1 law Decree number 124/2019 -tax Decree linked Budget law 2020- Government announced new limits to compensation of credits. News will be applied to credits already realized for fiscal year 2019, that is income declaration 2020 and irap declaration 2020. VAT legislation on compensation of credits will be extended to […]

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  • 2020 Tax Decree: Reduction of down payments for 2019

    From 2019 or, from the date of entry into force of the Tax Decree, for entities engaged in economic activities for which ISA have been approved and if they declare revenue/compensation not exceeding the limit set by each index and, for persons participating in companies, associations and undertakings with a tax transparency, has been provided […]

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  • Assets and liabilities value in case of tranferring the fiscal residence in Italy

    With the resolution no. 92 / E of 5 November 2019, the Internal Revenue Service (IRS) gave some clarifications regarding the value that assets and liabilities must assume when a company moves its fiscal residence within the Italian territory. The case examined by the IRS concerns a hypothesis of merger by incorporation, which occurred during […]

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  • Inhibition to the offset of tax receivables in case of VAT number closing or VIES exclusion

    Article 2 of Legislative Decree 124/2019, in force since October 27th, 2019, modified the previously applicable regulation of the so-called “horizontal offset”, by introducing three new paragraphs to art. 17 of Legislative Decree 241/1997 (more precisely paragraphs 2 quater, 2 quinquies and 2 sexies). The new law establishes the impossibility of offsetting tax receivables by […]

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  • Control Activities on electronic invoices: more data available for the Italian Revenue Agency and Financial Police

    According to art.14 of the Fiscal Decree n. 124/2019 the control activities on the XML files sent to the SDI will be intensified both in relation to the number of years (eight), for which the data will be stored, and also for the greater amount of information that the Italian Revenue Agency and Financial Police […]

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  • The SI and SK section of the 770/2019

    The SK section of the 770/2019 Form must be filled out by: IRES Individuals that during 2018 have had profit Individuals that during 2018 have had income that can be qualified as profit, deriving from association contracts in shareholdings, from financial instruments assimilated to shares, from interest reclassified as dividends according to the Thin Capitalization […]

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  • Reporting of the online transaction to tax authority

    The art. 13 of the law 34/2019 ( also called Decreto Crescita) has introduced a new legal reporting obligation for the taxpayers that facilitate selles through an electronic interface such as Marketplace or similar. Taxpayers that must comply with this reporting obligation are the ones that manage online platforms, Marketplace and other similar. Operators online […]

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  • The twelve-day rule for invoice’s issuing cannot always be adopted

    The invoice, pursuant to art. 21, paragraph 4, DPR 633/1972 must be issued at the time the transaction is carried out, determined in accordance with art. 6 of the same DPR. With the introduction of the electronic invoice, the provision introduced by art. 11 of DL 119/2018 (subsequently amended by DL crescita), in order to […]

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  • Crypto-currencies: accounting for IAS / IFRS purposes

    The Interpretation Committee (IC) has recently answered the request of IASB, regarding the accounting treatment to be applied to crypto-currencies. Crypto-currencies are digital currencies that can be used for the payment of goods and services or held for the purpose of investment. Unlike traditional currencies, crypto-currencies have no legal tender and are not guaranteed by […]

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  • Down payment based on a preliminary agreement – VAT deduction

    The Court of Cassation, with the decision n. 24671 of 3 October 2019, concerning the VAT treatment related to the down payment based on a preliminary real estate sale agreement, has incorporated the principle established by the European Court of Justice referred to the joined cases C-660/16 and C-661/16 of 31.05.2018, according to which the […]

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  • From October 1 full penalty for late invoices

    The purpose of this document is to illustrate the sanctioning profiles connected to the late transmission of electronic invoices between private parties after the reduced penalties period with taking effect from October 1. Please note that for I.V.A. purposes, the moment in which transaction took place is identified: At the time of stipulation, if the […]

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  • Electronical Invoice: the reduction in penalties for the first semester of 2019 has ended

    The Art. 10 of Law Decree 119/2018 provided a relief from penalties in case the e-invoice was issued within the deadline for VAT periodical liquidation. Moreover, a reduction of 80% of penalties was set forth in case of issuing of the e-invoice within the deadline for the following VAT periodical liquidation. This relief from penalties […]

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  • Patent Box

    “Patent Box”, firstly introduced by Budget Law for fiscal year 2015, was recently updated by law Decree number 34/2019. The tax break is aimed at stimulating company to increase their R&D investments through the introduction of a tax credit (both for corporate and regional tax purposes) based on the amount of the expenses sustained. The […]

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  • Business Crisis: first seven warning ratios developed by the Association of Chartered Accountants

    Article no. 13 of The New Italian Code of company crisis and insolvency entrusted advisors to set up every three years balance-sheet indicators and financial indicators able to promptly identify business crisis. The Association of Chartered Accountants and Auditors, with the support of Cerved Group SpA, developed the first seven warning ratios, that, applied to […]

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  • MNE with ongoing operational losses: automatic tax adjustments and construed solely on a presumptive basis are forbidden

    The Regional Tax Commission of Lombardy (judgment 928/20/2019) comes back to the issue of companies that are in permanent loss. In the case at stake, the Italian company belonging to a multinational group operating in the pharmaceutical sector, had recorded operating losses beyond the start-up period (from FY1997 to FY2013), while at the consolidated level […]

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  • Synthetic Indices of Tax Reliability (ISA)

    The ISA represents a new tool, through which it is intended to provide, to professionals and companies, an accurate and transparent feedback. ISA are indicators constructed with a statistical economic methodology based on accounting and structural data and information, related to several tax periods, which allow economic operators to independently assess their position and verify […]

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  • Compensation of VAT paid for the settlement concession of a tax audit report

    With reply to ruling n. 349 on August 28th, 2019 the Italian Revenue Agency recognized the possibility to claim for compensation from their assignee/customer, for those who have defined a tax audit report (so-called PVC) pursuant to art. 1 of Legislative Decree 119/2018. According to the provision of art. 60, par. 7, of Presidential Decree […]

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  • New deadline for income tax payment on October 30th with the surcharge of 0,4%

    The Italian tax revenue agency with the announcement n.71/E of August 1st 2019, has clarified the possibility to pay direct taxes scheduled for September 30th on October 30th with the addition of 0,4% on the total amount due. Taxpayers can pay in three instalments; the deadlines for the payment are scheduled in different days between […]

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  • Quarterly VAT credits transferred to the Group tax filing system

    According to the Art. 12 – sexies of DL 34/2019 there should be the possibility to transfer the quarterly VAT credits to the Group tax filing system in order to offset them with the Corporate income tax due by the parent company. In this regard, note that Article 7, paragraph 1, lett. b) of Ministerial […]

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  • Obligation to appoint the supervisory body/auditor. How to calculate the average number of employees.

    Article 2477, paragraph 2, c.c. has revised the limits for the appointment of the supervisory boards. It requires the mandatory appointment of a supervisory body/auditor if the company has exceeded at least one of the following limits for two consecutive years: total balance sheet assets over 4 million euros; revenues from sales and services over […]

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