Post on 22-Jul-2020
transcript
BonelliErede Covid-19 Task Force
This document is provided as a service to clients and other friends for informational purposes only.
It should not be construed or relied on as legal advice.
Covid-19: let’s start with Phase 2. The main innovations introduced by the Prime Ministerial Decree of 26 April and the law of conversion of the Cura Italia Decree
28 April 2020
Table of contents
National Health Service 4
Measures to support employment – impact on employment relationships and planning the return to workplaces 10
Measures to support liquidity through the banking system 27
Tax measures to support the liquidity of families and businesses 58
Measures regarding delays and non-fulfilment of contractual obligations due to measures to contain the virus, advance payments for public contracts and
administrative procedures 69
Analysis of the applicable remedies in contractual relationships and of the measures regarding debt securities (titoli di credito) 73
Measures regarding transport 76
Several aspects of Corporate law 92
Measures relating to debt restructuring and bankruptcy proceedings 102
Measures regarding the suspension of business activities and other restrictive measures 107
Analysis of criminal liabilities in the time of Covid-19 111
Compliance with Italian Legislative Decree No. 231/2001 in the time of Covid-19 120
Data protection recommendations 124
Competition law at the time of Covid-19 128
Appendix – main legislative measures and definitions 132
National Health Service
Measure
Regulatory References
Beneficiaries
Amount/Term Operational Guidelines
Notes
Strengthening of local
healthcare centres by
involving and
indemnification of private
organisations
Art. 3 of Cura Italia
Decree
• Regions and
autonomous provinces
of Trento and Bolzano
• Local healthcare
centres (azienda
sanitaria)
• Accredited and non-
accredited private
organisations
Term: until 31 Jul,
according to the resolution
of the Italian Council
of Ministers of 31 Jan.
The indemnity is calculated on the
market rates on 31 Dec.
The accredited and non-accredited
private organisations must provide
medical staff, premises, and
equipment at the request of: (a)
regions and the autonomous
provinces of Trento and Bolzano,
and (b) local healthcare centres1.
The private organisations will be
indemnified.
Temporary sanitary areas
Art. 4 of Cura Italia
Decree
• The regions and
autonomous provinces
of Trento and Bolzano
• Public and private
healthcare
centres/hospital
Term: until 31 Jul.,
according to the resolution
of the Italian Council of
Ministers of 31 Jan.
Accreditation requirements do not
apply to hospitals or healthcare
centres for the duration of the
emergency.
The regions and the autonomous
provinces of Trento and Bolzano
can set up temporary sanitary
areas in public and private
hospitals, healthcare centres, and
assistance and reception centres.
Funding for production
and supply of medical
devices
Art. 5 of Cura Italia
Decree
Medical devices
manufacturers
Term: until 31 Jul.,
according to the resolution
of the Italian Council
of Ministers of 31 Jan.
Through Invitalia S.p.A., the
extraordinary commissioner (for
the implementation and
coordination of the measures to
contain the Covid–19 emergency)
1 Art. 32, point 23, of the Liquidity Decree stipulates that the regions and autonomous provinces of Trento and Bolzano must grant the healthcare facilities listed in Art. 3, para. 1, point b): (i) proper remuneration for
the supplementary healthcare assistance carried out to set up Covid-19 units, and (ii) a tariff increase for assistance to Covid-19 patients.
Measure
Regulatory References
Beneficiaries
Amount/Term Operational Guidelines
Notes
Amount: EUR 50 m for
2020.
can provide medical device and
personal protective equipment
manufacturers preferential
financing, unsecured funding and
management account loans.
Permitted use of Personal
Protective Equipment
(PPE) and surgical masks
Art. 5-bis conversion law
of Cura Italia Decree
(former article 34 LD 2
March)
• Companies
• Private and public
entities
Term: until 31 Jul.,
according to the resolution
of the Italian Council
of Ministers of 31 Jan
It is allowed the use of PPE with
protective efficacy equal to the
permitted PPE2.
Surgical masks are considered
suitable for the protection of
medical staff.
It is authorised the use of surgical
masks that are not CE marked3.
Requisition
Art. 6 of Cura Italia
Decree
• Head of the Civil
Protection Department
• Prefects
• Private and public
entities
Term: until 31 Jul.,
according to the resolution
of the Italian Council
of Ministers of 31 Jan.
Owners are granted an indemnity for
any asset (movable or immovable),
requisitioned.
The Head of the Civil Protection
Department can request the
requisition from any private or
public entity, of: (a) healthcare and
medical-surgical devices, and (b)
movable goods designed to
implement and support the
2 The protective efficacy of such PPE is subject to the assessment of the Scientific and Technical Committee (as defined in the ordinance of the Head of the Civil Protection Department n. 630, 3 February 2020).
3 Surgical masks that are not CE marked are subject to the assessment of the Italian National Institute of Health (ISS).
Measure
Regulatory References
Beneficiaries
Amount/Term Operational Guidelines
Notes
measures to contain the COVID-
19 emergency4.
At the proposal of the Civil
Protection Department (in
consultation with the Prevention
Department with territorial
jurisdiction), the prefect can
request the requisition of
immovable assets (e.g., hotels) to
implement and support the
measures to contain the Covid-19
emergency.
Recognition of
professional health
qualifications
Art. 13 of Cura Italia
Decree
Health professionals Term: until 31 Jul.,
according to the resolution
of the Italian Council
of Ministers of 31 Jan.
Interested health professionals must
submit an application to the related
region or the autonomous provinces
of Trento and Bolzano accompanied
by a certificate of enrolment in the
professional register of their country
of origin.
Health professionals with foreign
qualifications regulated by EU
directives can practice in Italy.
Health monitoring
Art. 14 of Cura Italia
Decree
Companies and their
employees that: (a)
manufacture medicinal
products, medical devices
and/or personal
Quarantine does not apply to
employees of companies that: (a)
manufacture medicinal products,
medical devices and/or personal
protective equipment; (b) are
4 The Extraordinary Commissioner is also entitled to request requisition under Art. 6 and has appointed the Italian Customs and Monopolies Agency to carry out requisitions (see Extraordinary Commissioner Ordinance 1/2020).
Measure
Regulatory References
Beneficiaries
Amount/Term Operational Guidelines
Notes
protective equipment; (b)
are involved in research;
or (c) take part in the
related supply chain
involved in research; or (c) are in
the related supply chain.
The employees must stop working if they suffer respiratory problems or test positive to Covid-19
Manufacturing of surgical
masks and PPE
Art. 15 of Cura Italia
Decree
Companies Term: until 31 Jul.,
according to the resolution
of the Italian Council
of Ministers of 31 Jan.
Companies that wish to avail of this
measure must send the ISS (as
regards surgical masks) or the INAIL
(as regards PPE) a self-certification:
(a) describing the product’s
characteristics, and (b) confirming
that the product complies with safety
requirements.
Companies can manufacture,
import and market surgical masks
and/or PPE as an exception to
current regulation.
Protection of workers and
community
Art. 16 of Cura Italia
Decree
• Companies
• Employees and
• Community
Term: until 31 Jul.,
according to the resolution
of the Italian Council
of Ministers of 31 Jan.
For employees who cannot keep
one metre’s distance from others
at work, surgical masks are
considered personal protective
equipment.
It is allowed the use of
“community masks” to the extend
it is provided by DPCM 26 April
2020 (article 3, para. 3 and 4).
The “community masks” are not
intended for medical staff and
workers.
Experimental studies and
compassionate use
Art. 17 of Cura Italia
Decree
• AIFA
• National Institute of
Infectious Diseases
Term: until 31 Jul.,
according to the resolution
of the Italian Council
In accordance with para. 5, AIFA has
published a circular related to
experimental studies and
AIFA has access to all the data
from experimental studies and
compassionate use of medicinal
Measure
Regulatory References
Beneficiaries
Amount/Term Operational Guidelines
Notes
Lazzaro Spallanzani’s
Ethics Committee
(Rome) (“Ethics
Committee”)
• Companies that
manufacture medicinal
products and/or
medical devices
• Doctors
of Ministers of 31 Jan. compassionate use of medicinal
products for patients with Covid-195.
products for patients with Covid-
19.
The Ethics Committee collects
from the promoters: (a) all the
protocols for the experimental
studies on medicines of phase II,
III and IV (for the treatment of
patients with Covid-19) (and the
related amendments); and (b)
requests from doctors for
compassionate use of medicinal
products.
5 Available on AIFA’s official website.
Measures to support employment – impact on employment relationships and planning the return to workplaces
Measure Regulatory References
Beneficiaries Amount/Term Operational Guidelines Notes
Ordinary wages guarantee fund (“CIGO”) for the Covid-19 emergency
Art. 19 of Cura Italia Decree, as modified by Law No. 27/2020, and Art. 41 of Liquidity Decree.
• Employers that fall within the scope of CIGO6.
• The Liquidity Decree extends the eligibility under the Cura Italia Decree of employees who can benefit from CIGO from those hired on or before 23 Feb. 2020 to those hired on or before 17 Mar. 2020 (normal minimum of 90 days in employment does not apply).
• Amount: 80% of the total salary employees would have earned ordinarily for each hour of non-performed work, up to a monthly gross of: (a) EUR 998.18 for employees with a monthly salary of up to EUR 2,159.48, and (b) EUR 1,199.72 for employees with a monthly salary of over EUR 2,159.48.
• Wage subsidies can be paid to employees either through an UNIEMENS adjustment or directly; employers need not prove financial difficulty.
• Term: from 23 Feb. to 31 Aug., for periods of a
maximum of nine weeks7..
• Requests must be submitted to the Italian Social Security Authority (INPS, Istituto Nazionale per la Previdenza Sociale) by the end of the fourth month following the suspension/reduction of working hours.
• EUR 1,347,200,000 is the spending limit for 2020.
• The Covid-19 CIGO periods are not considered for the calculation of the limits for other wage subsidy fund requests and are not taken into account when evaluating subsequent requests.
• Employers are exempt from paying the mandatory additional contribution to the CIGO.
• Employers that fall within the scope of CIGO can suspend any ongoing availing of the extraordinary wages guarantee fund (“CIGS”) in course on 23 Feb. and replace it with the Covid-19 CIGO, for a maximum of nine weeks.
• Employers need not prove temporary financial difficulty or that they were not responsible for it to request CIGO; they
6 I.e., employers in the following sectors: (a) industrial manufacturing, transport, mining, plant installation, production and distribution of energy, water and gas; (b) production and work cooperatives that carry out work similar to that of
workers in industrial enterprises, except for the cooperatives listed in Presidential Decree No. 602 of 30 April 1970; (c) enterprises in the forest, forestry and tobacco industries; (d) agricultural and livestock cooperatives and their consortia that
carry out processing, handling and marketing of their own agricultural products for employees with permanent contracts only; (e) enterprises in the rental and distribution of films and in the development and printing of film; (f) industrial
enterprises for the pressing of olives on behalf of third parties; (g) ready-mix concrete producers; (h) enterprises engaged in electrical and phone installations; (i) railway fitting-out enterprises; (j) industrial enterprises that belong to public bodies,
unless the capital is wholly owned by the public authorities; (k) industrial and craft enterprises in the building industry and related sectors; (l) industrial enterprises engaged in the quarrying and/or processing of stone materials; and (m) craft
enterprises that provide quarrying and processing of stone materials, except those that process in laboratories with facilities and organisation separate from the quarrying (Art. 10 of Law Decree No. 148/2015).
7 According to Law No. 27/2020 employers with business units in the so called “red zones” (as listed in Annex 1 to PMD 1 Mar.) or with employees resident or domiciled there can request CIGO for an extra period lasting up to 3 months (Art.
19 co. 10-bis).
Measure Regulatory References
Beneficiaries Amount/Term Operational Guidelines Notes
need only enclose a list of employees involved.8
• Accrued leave is not considered when evaluating CIGO requests.9
• Covid-19 CIGO covers also statutory sick pay and any additional contractual provisions on sick pay.10
• Employers enrolled in Covid-19 CIGO are allowed to renew or extend any ongoing fixed-term employment contracts, notwithstanding current provisions, also for agency work contracts (Art. 19-bis of Law No. 27/2020).
Wage subsidy allowance (“FIS”) for the Covid-19 emergency
Art. 19 of Cura Italia Decree, as modified by Law No. 27/2020, and Art. 41 of Liquidity Decree.
• Employers enrolled in the wage subsidy fund (FIS, Fondo di Integrazione Salariale),11 inc. those with more
• Amount: 80% of the total salary employees would have earned ordinarily for each hour of non-performed work, up to a monthly gross amount of: (a) EUR 998.18 for employees with a
• Requests must be submitted by the end of the fourth month after the suspension/reduction of working hours.
• The spending limit for 2020 is EUR 1,347,200,000.
• Employers are exempt from paying the mandatory additional contribution to the wage subsidy fund.
• Ongoing availing of the wage solidarity allowance can be suspended and replaced with this
8 INPS Circular No. 47/2020.
9 INPS Circular No. 47/2020 and INPS message No. 3777/2019.
10 Art. 3 of LD No. 148/2015, referenced in INPS Circular No. 47/2020.
11 I.e., employers with more than 5 employees and not included in the scope of CIGO and CIGS or enrolled in specific bilateral solidarity funds.
Measure Regulatory References
Beneficiaries Amount/Term Operational Guidelines Notes
than 5 employees.
• The Liquidity Decree extends the eligibility under the Cura Italia Decree of employees who can benefit from the subsidy from those hired on or before 23 Feb. to those hired on or before 17 Mar. 2020 (normal minimum of 90 days in employment does not apply).
monthly salary of up to EUR 2,159.48, and (b) EUR 1,199.72 for employees with a monthly salary of over EUR 2,159.48.
• Employers with more than 15 employees can pay employees through an UNIEMENS adjustment or request direct payment by INPS, with no need for employers to prove financial difficulty. Employees of companies with 5–15 employees can be paid directly by INPS.
• Term: from 23 Feb. to 31 Aug., for periods of up to
nine weeks12.
allowance for a maximum of nine weeks.
• Wage subsidy allowance is available, in the period indicated, also for employers enrolled in the wage subsidy fund with fewer than 15 employees.
• Accrued leave is not considered when evaluating FIS requests.13
• Employers enrolled in Covid-19 FIS are allowed to renew or extend any ongoing fixed-term contracts, notwithstanding current provisions, also for agency work contracts (Art. 19-bis of Law No. 27/2020).
Exceptional wages guarantee fund (Cassa Integrazione in deroga)
Art. 22 of Cura Italia, as modified by Law No. 27/2020, Decree and Art. 41 of Liquidity Decree.
• Employers not falling within the scope of CIGO/FIS, exc. employers of domestic workers
• Amount: the same applicable for CIGO. Notional contribution is granted for employees.14
• Term: from 23 Feb. to 31 Aug., for periods lasting up
• Trade-union agreement (excluding employers with less than five employees or companies that have closed due to Covid-
19 restrictive measures)16.
• Regions and autonomous provinces adopt decrees accepting requests on a
• Operating procedures will be established by each region and in accordance with agreements between the regions and trade unions.
• Accrued leave is not considered
12 According to Law No. 27/2020 employers with business units in the so called “red zones” (as listed in Annex 1 to PMD 1 Mar.) or with employees resident or domiciled there can request wage subsidy fund for an extra period lasting up to 3
months (Art. 19 co. 10-bis).
13 INPS Circular No. 47/2020 and INPS message No. 3777/2019.
14 No mention of this contribution in the new measures for the other wage subsidy funds, as the contribution is already provided by law.
Measure Regulatory References
Beneficiaries Amount/Term Operational Guidelines Notes
• The Liquidity Decree extends the eligibility under the Cura Italia Decree of employees who can benefit from fund from those hired on or before 23 Feb. to those hired on or before 17 Mar. 2020 (no seniority requirement provided by the decree).
to a maximum of nine
weeks15.
chronological basis.
• The spending limit for 2020 is EUR 3,293,200,000.17
• The exceptional wages guarantee fund is paid directly and exclusively by INPS.
when evaluating requests for the exceptional wages guarantee fund.18
• The subsidy is granted by decree of the MLPS for companies located in more regions/autonomous provinces.19
• Employers enrolled in exceptional wage guarantee funds are allowed to renew or extend any ongoing short-term contracts, notwithstanding current provisions, also for agency work contracts (Art. 19-bis Law no. 27/2020).
Parental leave20 Art. 23 of Cura Italia Working parents • Amount: 50% of the total • Requests for parental leave must be
16 According to the MLPS Circular No. 8/2020, requests must be accompanied with the trade union agreements and the list of beneficiaries, including the number of hours on furlough (divided into full-time and part-time) and the requested
amount, company information (name, legal status, registered office, tax code, INPS number, authorised representative), business unit information, reason for the request and phone and email contacts. According to INPS Circular No. 47/2020,
“the agreement referred to in Art. 22 is deemed to be concluded when the joint examination referred to in Art. 19 [of Cura Italia Decree] is completed”.
15 According to Law No. 27/2020 employers with business units in the so called “red zones” (as listed in Annex 1 to PMD 1 Mar.) or with employees resident or domiciled there can request wage subsidy fund for an extra period lasting up to 3
months (Art. 22 co. 8-bis to co. 8-quater) and employers with business units in Lombardy, Veneto and Emilia Romagna can request wage subsidy fund for an extra period of up to 4 weeks within the spending limits (EUR 135 million for
Lombardy, 40 million for Veneto and 25 million for Emilia Romagna).
17 Funds are allocated in accordance with DI No. 3 of 24 Mar. 2020 (Ministry of Labour – Ministry of Economy and Finance).
18 INPS Circular No. 47/2020.
19 INPS Circular No. 47/2020; DI No. 3 of 24 Mar. 2020 (Ministry of Labour – Ministry of Economy and Finance) and Law No. 27/2020 (Art. 22 co. 4). The MLPS grants the subsidy on behalf of regions/autonomous provinces when the
employer has production or operational units (inc. stores in the same company) in five or more Italian regions/autonomous provinces (MLPS Circular No. 8/2020).
20 Please see INPS Circular No. 45/2020, INPS Circular No. 44/2020, INPS message No. 1621/2020 and INPS message No. 1648/2020 for further information.
Measure Regulatory References
Beneficiaries Amount/Term Operational Guidelines Notes
Decree, as modified by Law No. 27/2020.
with:
• children of up to the age of 12; or
• children who
suffer from
severe,
recognised
disabilities and
who are enrolled
in schools or in
daycare centres
salary; as an alternative to parental leave, a babysitter voucher for EUR 600, to be paid with the “family credit” (libretto famiglia).
Notional contribution is granted for employees.
• Term: from 5 Mar. for up to 15 days (continuous or not).
submitted to both the employer and INPS, in accordance with the ordinary procedures for parental leave.
• Parental leave is granted to one parent only.
• Requests are granted only if none of the household members benefits from support measures for suspension or reduction of working time; requests are denied if a parent is unemployed.
Working parents in the private sector with children from 12 to 16 years old if none of the household members benefit from support measures for suspension or reduction of working time or a parent is unemployed.
• Parental leave granted for up to 15 days /continuous or not), during the suspension of child-care services and schools.
• No payment of any indemnity.
• Right not to be dismissed during the leave.
Self-employment allowance
Arts. 27–31 of Cura Italia Decree, as modified by Law No. 27/2020.
• Freelancers with a VAT No. on 23 Feb. and enrolled in the private
Amount: EUR 600, tax-free lump sum; neither notional contribution nor family allowances are granted.
• Requests must be submitted to INPS.
• Requests are accepted up to the spending limit (EUR 203.4 m).
• Beneficiaries of other welfare benefits (e.g., citizenship income, pensions paid out from AGO, and disability allowances) are
Measure Regulatory References
Beneficiaries Amount/Term Operational Guidelines Notes
pension fund for the self-employed (Gestione Separata), inc. associates of firms and freelancers who work for simple partnerships (società semplici), provided they work on a self-employed basis, are not entitled to State pensions and not enrolled in other mandatory social security schemes.
• Consultants in employ on 23 Feb. who perform their work in a continuous and coordinate manner (co.co.co.) and are enrolled in the self-employment contribution system.
• Self-employees enrolled in self-employment
ineligible for the self-employment allowance.22
• Law No. 27/2020 introduced a supplementary allowance equal to EUR 500, for a period up to 3 months, for freelancers and consultants working in the “red zones” on 24 Feb (Art. 44-bis).
Measure Regulatory References
Beneficiaries Amount/Term Operational Guidelines Notes
contribution systems21 (“AGO”).
Award for those who worked at the company’s premises in March
Art. 63 of Cura Italia Decree, as modified by Law No. 27/2020.
Employees whose 2019 employment income did not exceed EUR 40k
Amount: EUR 100 for Mar. The amount is determined based on the days the employee effectively spent at his/her workplace in Mar., on a pro-rata basis.
The bonus is automatically paid by the employer, which can then offset the amount against taxes due.
The credit is not subject to income tax in the hands of the employee.
Prohibition on redundancies
Art. 46 of Cura Italia Decree, as modified by Law No. 27/2020.
• All employers (compatible with the specific redundancy regulations).
• All employees, exc. executives.
• Prohibition on starting collective redundancy procedures for 60 days as from 17 Mar.
• Suspension for 60 days (from 17 Mar.) of collective redundancy procedures started after 23 Feb.
• Prohibition for employers (regardless of the number of employees) of making employees redundant for objective reasons, from 17 Mar. and for 60 days.
Prohibition on starting collective redundancies and the suspension of collective redundancies do not apply in the context of a change of service contract, if the employees redundant are re-hired by the new contractor.
Quarantine Art. 26 of Cura Italia Employees in the • The period in quarantine is • Certification of the state of illness is Quarantine does not apply to
22 INPS Circular No. 49/2020.
21 The beneficiaries also include: (a) seasonal workers in the tourism sector, non-pensioners and non-employees; and (b) workers in the agricultural sector on fixed-term contracts who are not pensioners.
Measure Regulatory References
Beneficiaries Amount/Term Operational Guidelines Notes
Decree, as modified by Law No. 27/2020.
private sector.
considered a period of illness for the purpose of the salary payments.
• Employees with a certificate of disability or a certified risk condition due to immunosuppression can be recognised a sick leave period comparable to hospitalization, prescribed by the attending physician and health authorities, unless it is possible to work remotely.
• The period is not counted in the maximum sick leave period under the collective agreements.
required from the attending physician, with details of the measure which established the quarantine.
• Costs are borne by the State for up to EUR 130,000,000 for 2020.
employees of companies in the production of medicines and medical and diagnostic devices, or of companies carrying out research in the related fields and in the integrated supply chain. Employees who have respiratory symptoms or test positive must stop working.
Measure Regulatory References
Beneficiaries Amount/Term Operational Guidelines Notes
Italian Insurance Authority for Accidents at work (“INAIL”) coverage
Art. 42 of Cura Italia Decree, as modified by Law No. 27/2020.
Employees in the private and public sector.
Cases of Covid-19 infection at work are considered accidents at work, resulting in INAIL coverage. Same coverage applies for periods
in quarantine23.
• Certification of injury from the attending physician to be sent to INAIL.
• The costs are borne by INAIL and are not taken into account to determine the average accident rate.
23 According to INAIL Circular No. 13/2020 insurance coverage for Covid-19 infection is guaranteed only for infection on commute (in itinere accident). For some categories of workers, particularly exposed to the risk of contagion, there is a
presumption that the contagion happened on workplaces (i.e. health workers, front-office employees)
Measure Regulatory References
Beneficiaries Amount/Term Operational Guidelines Notes
How to carry out authorised activities
PMD 26 April, LD 25 March and any applicable local provision.
Authorised activities24
Currently until 17 May 2020. - Work remotely to the extent possible, employees must be notified before the company carries out any remote checking of the performance, under Art. 4 of Workers’ Statute and Privacy law.
- For activities that cannot be performed remotely, after a risk assessment25:
(i) adopt the safety measures (especially under Protocol 24 Apr.26, including the summarized measures listed below) to be reflected in:
(ii) company safety protocols to prevent infection;
(iii) supply the proper personal and environmental protective equipment
The non-adoption of the safety measures can trigger the employer’s civil and criminal liability for damage resulting from the breach.
Failure to implement the Protocol and, consequently, not ensuring adequate levels of protection shall cause the suspension of the company activities until safety conditions are restored.
24 Please see the sections “Measures regarding the suspension of business activities and other restrictive measures” and “Analysis of criminal liabilities in the time of COVID-19” for an overall description of authorised activities.
25 If you have service contracts, update Risk Assessment Document (DVR) and Interference Risk Assessment Document (DUVRI) and update the costs for safety measures. Please see also the National Labour Inspectorate Note No. 89 of 13
Mar. 2020 on “Employers’ fulfilments – emergency risk assessment” (that underlines the appropriateness of a specific section in DVR to track safety measures in place).
26 Protocol 24 Apr. signed by the government and trade unions, referred to in PMD 26 Apr., updates previous Protocol 14 March and thus become mandatory for the companies whose activities are not suspended. The Protocol 24 Apr.
provides for, particularly, measures concerning communications, entry into the company, access to the company by external suppliers, company cleaning and sanitising, personal hygiene precautions, personal protective equipment, management
of common spaces, company organisation (shifts, travels, smart working and changes in production levels), management of employees’ entry and exit, internal movements, meetings, internal events and training, management of symptomatic
people at work, health surveillance/company doctor/employees’ safety representative, and updating of the protocol, providing for, among other things, the establishment in the company of a committee for applying and verifying the protocol
rules. See also the Note No. 89 of 13 March 2020 of the National Labour Inspectorate on “Employer’s obligations – Coronavirus emergency risk assessment” (which highlights, among other things, that it is appropriate to draft a specific appendix to the
DVR (“Documento di Valutazione dei Rischi”) for the traceability of the implemented measures). Please see any shared protocols concerning specific sectors (such as the “Shared protocol to contain the spread of COVID-19 in construction sites”
of 19 Mar. 2020, the “Shared Protocol to contain the spread of Covid-19 in transports” equally referred to in PMD 26 Apr.), regional protocols (such as ordinances No. 38/2020 and No. 40/2020 of Tuscany) and sector-specific protocols, such
as the “Shared Protocol in the fashion sector” signed by Confindustria Moda and trade unions on 15 Apr., the “Shared Protocol in the bank sector” signed by ABI and trade unions on 16 Apr. Please see measures in Annex 5 of PMD 26 Apr.
for shops and commercial establishments.
Measure Regulatory References
Beneficiaries Amount/Term Operational Guidelines Notes
(e.g., masks, that according to Protocol 24 Apr. are to be adopted by workers who share common spaces);
(iv) adopt any useful safety measure to contain the spread of Covid-19, including any suggestion from the attending physician, considering his position in risk assessment and sanitary surveillance (i.e. diagnostic equipment such as serological tests and/or technologies to support the
detection of relevant risks)27;
(v) limit movement within sites and restrict access to common areas as much as possible;
(vi) increase sanitisation at workplaces, using the wage subsidy measures to cover salaries during business suspension;
(vii) seek arrangements with the trade unions;
(viii)appoint a risk manager who employees can go to for information (the above Protocol 24 Apr. envisages the creation of a protocol compliance committee involving trade union and workers’ safety representatives, or a Local Joint
27 Protocol 24 Apr. specifies that employers must cooperate where health authorities set forth additional measures for employees, i.e. swab test.
Measure Regulatory References
Beneficiaries Amount/Term Operational Guidelines Notes
Committee on health and safety);
(ix) appoint a person responsible for communications with the authorities and with health services for the timely reporting of cases of suspected contagion and to ensure the timely flow of information with respect to adopted precautionary and prophylactic measures;
(x) make the company doctor and person responsible for prevention and protection aware of the need to: (a) keep up to date on procedures and prophylactic treatments issued by the scientific community and international authorities, (b) keep the risk manager and workers up to date, and (c) adopt the consequent measures; and
(xi) appoint a person responsible for monitoring compliance with safety measures.
Employers will therefore need to:
- notify employees either of the following:
(i) the need to work remotely, and the possibility that the company will carry out remote checks of the performance under Art. 4 of Workers’ Statute and Privacy Law; or
(ii) the need to work at the workplace; in this case, attach the self-declaration form for employees to use (i.e., tick the box “work-related need to travel”).
• Inform employees of the safety measures
Measure Regulatory References
Beneficiaries Amount/Term Operational Guidelines Notes
and other safeguards adopted at the workplace.
Measure Regulatory References
Beneficiaries Amount/Term Operational Guidelines Notes
How to carry out non-authorised activities
PMD 26 April., LD 25 March and any applicable local provision.
Non-authorised activities28.
Currently until 17 May 2020. • Employees can continue to work remotely.
• For work that cannot be performed remotely, employers can:
- require the employees to use annual leave and other paid leave, prioritising leave carried over until 31 Dec. 2019, or other measures under collective bargaining agreements; and
- use the measures under the Cura Italia Decree to support employment during the Covid-19 emergency, i.e. ordinary wages guarantee fund (CIGO); wage subsidy allowance (FIS); and exceptional wages guarantee fund (Cassa Integrazione in deroga), depending on the company, and as implemented by the regions over time.
Employers will therefore need to:
- notify employees of either of the following:
(i) the need to work remotely, and the possibility that the company will carry out remote checks of the performance under Art. 4 of Workers’ Statute and Privacy Law; and
(ii) the suspension of the business
For an overview of the wage subsidy measures under the Cura Italia Decree, as modified by Law No. 27/2020, and under the Liquidity Decree, please see the related section above. In brief, the wage subsidy measures:
- are granted for up to nine weeks any time between 23 Feb. and 31 August 2020, for a period lasting up to 9 weeks;
- were granted to employees hired on or before 23 Feb. under Cura Italia Decree; are now granted to employees hired on or before 17 Mar. under Liquidity Decree;
- do not entail any charges for the employers;
- will be granted within the spending limit under the Cura Italia Decree; and
- will cover up to 80% of the total salary employees would have earned ordinarily for each hour of non-performed work, up to a monthly gross
28 Please see the sections “Measures regarding the suspension of business activities and other restrictive measures” and “Analysis of criminal liabilities in the time of COVID-19” for an overview of authorised activities.
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Beneficiaries Amount/Term Operational Guidelines Notes
activity, possibly requiring them to use holiday/the wage subsidy
measures29.
- Apply for the wage subsidy measures.
of: (a) EUR 998.18 for employees with a monthly salary of up to EUR 2,159.48, and (b) EUR 1,199.72 for employees with a monthly salary of over EUR 2,159.48.
On 28 Mar., following the conclusion of agreements between the regions and trade unions, INPS published guidelines and information on how to apply for these wage subsidies (INPS Circular No. 47/2020).
For employees not eligible for the wage subsidy measures, the prohibition to continue working may constitute a temporary impossibility to work not attributable to the employer, with possible subsequent suspension of respective obligations.
29 Under PMD 10 April. And PMD 26 Apr., regardless of the suspension of production activities, employees/authorised third parties are allowed to access business premises, after notifying the local prefecture, for surveillance, conservation and
maintenance, payment processing, cleaning and sanitization purposes. Also subject to notifying the prefecture, companies are allowed to ship to third parties stocked goods and receive goods to be placed in stock. Furthermore, according to
PMD 26 Apr., companies that will restart their activity on 4 May are allowed to perform any activity needed to reopen from 27 Apr.
Measure Regulatory References
Beneficiaries Amount/Term Operational Guidelines Notes
Further possible impact:
(i) salaries and bonuses;
(ii) fixed-term contracts; and
(iii) new recruits.
- Art. 2103 of the Italian Civil Code.
- Law Decree No. 81/2015, as modified by Law Decree No. 87/2018, converted by Law No. 96/2018.
All businesses. - Salaries and bonuses: assess possible decreases/renegotiation of salaries and/or terms and conditions.
- Fixed term contracts: assess possible extensions/renewal of contractual terms for reasons specifically related to the emergency (according to Art. 19-bis of Law No. 27/2020, companies enrolled in Covid-19 wage subsidy funds are allowed to renew/extend any ongoing fixed-term contracts, notwithstanding current provisions, also for agency work contracts).
- New recruits: seek to postpone start date/ renegotiation of terms and conditions.
Planning the return to workplaces
All companies that have suspended their business whose activity is authorised to restart and/or have been working remotely.
Plan the restart of the activities by, e.g., schedule when to have employees’ return to workplaces, taking into account potential developments in the national and local situation; update safety protocols to prevent infection; assess whether to adopt safety protocols to take diagnostic tests (i.e. serological tests/swabs) and use the results as a basis to draw up measures and ways to return to work; ask employees to complete surveys (also online) to help ascertain risks that might affect times and ways of their return (i.e.: health conditions, risk exposure, etc.); assess whether to adopt technologies (i.e. apps) to support the risk identification; prepare workplaces (i.e., sanitisation); supply personal protective equipment (i.e., masks) etc.
Employers’ obligations and the feasibility of different solutions will also depend on developments in national and regional legislation.
Measures to support liquidity through the banking system
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Financial support for companies – SACE guarantee and state counter-
guarantee30
Art. 1, paras. 1–12, of the Liquidity Decree
Companies affected by the Covid-19 emergency, excluding:
(i) banks and other authorised Italian credit institutions,
(ii) companies that, on 31 Dec. 2019, were in the category “companies in financial difficulty” under EU Regulation 651/2014; 31 and
(iii) companies with impaired debt on 29 Feb. 2020.
With regard to SMEs (inc. self-employed workers (lavoratori autonomi) and professionals (liberi
SACE S.p.A. grants irrevocable, first-demand guarantees, which must comply with the prudential supervisory regulations, to cover loans with a maximum term of six years granted by banks, national and international financial institutions and other authorised Italian credit institutions after 9 Apr. 2020 to companies affected by the Covid -19 emergency.
This article and the SACE General Conditions (attached to the ABI circular dated 21 Apr.
202034) stipulate the following conditions:
(i) The maximum guaranteed amount cannot be higher than the following amounts recorded in the approved budget or, if not approved in a self-certification:35
(a) 25% of the company’s 2019 turnover; and
(b) double the company’s 2019 personnel costs.
When the company has several loans secured by this guarantee or by another public guarantee, the loan amounts are
31 Dec. 202037 The effectiveness of the measures in this article was subject to the approval, granted on 14 Apr., of the European Commission, under Art. 108 of the Treaty on the Functioning of the European Union38.
Lenders who intend to use SACE’s guarantee to grant financing under this article must execute a “deed of accession” and complete the access procedure on SACE’s online portal. Companies that wish to benefit from these measures must send the lender in question a request for secured loan using the form attached to SACE’s General Conditions (attached to the ABI circular of 21
Apr. 202039).
Ordinary and simplified procedures for issuing guarantees are set out; which one applies depends on the size of the borrower.
1) Simplified procedure: applicable to companies with fewer than 5,000 employees and a turnover of up to EUR 1.5 bn
• The lender (which may also operate in a pool with other lenders), once it receives a request for a secured loan,
30 On 21 Apr. 2020, the Italian Banking Association (“ABI”) issued a circular containing the operational procedures for the issuance of these guarantees; it also attached the Operational Manual and General Conditions drawn up by SACE S.p.A..
The circular is available here.
31 SACE provides a preliminary but more accurate explanation of the requirements to determine the absence of financial difficulties in its guide on how to obtain a guarantee, available in Italian here.
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professionisti) with VAT numbers)32 the measures apply to those that have exhausted their right to the Central SMEs Guarantee Fund.33
combined.
(ii) The guarantee (without prejudice to the limits under point (i) above) secures the principal, interest and ancillary charges in the following percentages (in relation to losses, the guarantor and borrower bear them in equal, proportional percentages):36
(a) 90% of the loan for companies with fewer than 5,000 employees in Italy and a turnover of up to EUR 1.5 bn;
(b) 80% of the loan for companies with a turnover of EUR 1.5–5 bn or more than 5,000 employees in Italy; and
starts its internal due diligence investigation in accordance with the ordinary rules.
• The lender(s) (or agent(s)), after deciding to approve the loan, submits a guarantee request – using the form attached to SACE’s General Conditions (attached to the ABI
circular of 21 Apr. 202040) – to SACE, which verifies that the document set uploaded by the lender to SACE’s online portal is complete and that the loan is approved.
• SACE, if it approves the request, notifies the lender of the issuance of the guarantee and the related identification code (CUI).
34 Available in Italian here.
35 The maximum guaranteed amount is determined referring to the turnover and the personnel costs in Italy and, for company groups, on a consolidated basis.
37 As clarified in the Operational Manual and General Conditions, the loans eligible for this guarantee must be disbursed from 9 Apr. to 31 Dec. 2020.
38 Please see the European Commission’s press release, available here.
39 Available in Italian here.
32 SMEs are defined in the section of this vademecum entitled “Central SMEs Guarantee Fund”.
33 Law Decree No. 23 of 8 Apr. 2020 allocated EUR 200 bn, of which at least EUR 30 bn to support SMEs, self-employed workers (lavoratori autonomi) and professionals (liberi professionisti).
36 For non-bullet loans, the percentages mentioned apply to the outstanding amount. For company groups, the guarantee percentage is determined by referring to the group’s turnover and personnel costs on a consolidated basis.
40 Available in Italian here.
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(c) 70% of the loan for companies with a turnover of more than EUR 5 bn.
(iii) Companies that benefit from the guarantee must undertake to maintain certain employment levels established under trade union agreements.
(iv) Loans secured by the guarantee must be used to cover personnel costs or investments, or as working capital for manufacturing units and business activities, in Italy. The guarantee cannot be used for loans used to: (a) refinance existing loans, or (b) purchase equity investments.
(v) Companies that wish to benefit from the guarantee must declare in their request that neither they nor any other company based in Italy belonging to their same group has approved dividend distributions or share buy-backs as of 9 Apr. 2020; in the facility agreement, they must then undertake that, as of 9 Apr. 2020, neither they nor any other company based in Italy belonging to their same group will approve or proceed with dividend distributions or share buy-backs in 2020.
(vi) A lender’s total outstanding exposure with a borrower after granting a new loan, secured by the guarantee, must be higher than the outstanding exposure on 9 Apr. 2020, adjusted by the exposure reductions between 9 Apr.
• The lender, under penalty of revocation, must disburse the secured loan and notify SACE of the disbursement date within 30 days from notification of the issuance of the guarantee. Only after notification of the disbursement date is the guarantee considered issued.
2) Ordinary procedure: applicable to companies with a turnover of more than EUR 1.5 bn or more than 5,000 employees in Italy
• The lender, once it receives a request for a secured loan, must promptly coordinate with SACE before starting its internal procedures. Specifically, the lender must submit a guarantee request to SACE together with additional documents compared to those required in the simplified procedure. Once SACE completes its investigation, it submits its decision to the Ministry of Economy and Finance for authorisation, which is granted (by decree) after consultation with the Ministry of Economic Development. Authorisation is granted based on SACE’s report and on the company’s contribution to/involvement in: (i) technological development, (ii) logistics and supply network, (iii) critical and strategic infrastructures, (iv) employment levels and the labour market, and (v) strategic production chain.
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2020 and the signing date of the new loan in accordance with the contractual terms established between the parties before 9 Apr. 2020.
SACE’s obligations under these guarantees are automatically secured by first-demand, without recourse, unconditional, irrevocable state guarantees covering the principal amount, interest and any ancillary charges, after deduction of commissions for those guarantees.
SACE carries out the activities related to enforcing guarantees and credit recovery on behalf of the Ministry of Economy and Finance, inc. by delegating tasks to banks, national and international financial institutions and other authorised Italian credit institutions.
• SACE – following the ministry’s authorisation of the guarantee – notifies the lender of the issuance of the guarantee and the related CUI. The lender, under penalty of revocation, must disburse the secured loan and notify SACE of the disbursement date within 45 days from notification of the issuance of the guarantee. Only after notification of the disbursement date is the guarantee considered issued.
The Ministry of Economy and Finance may adopt further measures (by the abovementioned decree) to provide a higher percentage of coverage of the guarantee.
Please refer to SACE’s General Conditions (attached to the ABI circular of 21 Apr. 2020) for a more detailed examination of the above procedures, their timing and the necessary support documentation.
The fees for the issuance of a guarantee are to be calculated as follows:
- loans to SMEs – amount guaranteed: 25 bps in the first year, 50 bps in the second and third, and 100 bps in the fourth, fifth and sixth; and
- loans to others – guaranteed amount: 50 bps in the first year, 100 bps in the second and third, and 200 bps in the fourth, fifth and
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sixth.
With regard to fees for granting loans secured by this guarantee, the article stipulates that the fees must be less than what the lender(s) would have charged – as documented and certified by an authorised representative of the lender – for a similar loan but not secured by the guarantee. The article goes on to specify that the reduction must be at least equal to the difference between: (i) the fees that the lender(s) would have charged – as documented and certified by an authorised representative of the lender – for a similar loan but not secured by the guarantee; and (ii) the fees for the guaranteed loan.
The Ministry of Economy and Finance may adopt further measures (by a non-regulatory decree) to provide further implementation and operational procedures, inc. operational indications for SACE on the management of guarantee issuing activities and verification of compliance with the limits and conditions under this article.
If the European Commission’s “Temporary framework for State aid measures to support the economy in the current COVID-19 health emergency” of 19 Mar. is amended, the eligibility requirements to access to the guarantee and the procedures under this article might be amended by decree of the Ministry of Economy and Finance, acting jointly with the Ministry of Economic Development.
Financial support for companies – Cassa Depositi e Prestiti S.p.A. might be granted a state guarantee
Art. 1, para. 13, of the Liquidity Decree
Italy-based companies that have recorded a decrease in revenue due to the Covid-19
The Ministry of Economy and Finance might adopt further measures (by decree to be adopted in accordance with EU law) to enable Cassa Depositi e Prestiti (“CDP”) to benefit
31 Dec. 2020 The guarantees can be granted only by decree of the Minister of Economy and Finance.
Unlike the seemingly non-temporary measure under Art. 57 of the Cura Italia Decree, the
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emergency from a first-demand, unconditional, irrevocable state guarantee (which must comply with the prudential supervisory regulations) to cover its current/future exposure – within the overall EUR 200 bn limit allocated for “Financial support for companies – SACE’s guarantee and state counter-guarantee”.
Art. 1 clarifies that CDP’s exposure derives also from first-loss guarantees on loan portfolios granted, in any form, by banks and other authorised Italian credit institutions to Italy-based companies that have suffered a reduction in turnover due to the Covid-19 emergency.
effectiveness of this measure is limited both in terms of time (i.e., exposure assumed by CDP on or before 31 Dec. 2020) and amount (i.e., up to a maximum of EUR 200 bn, of which at least EUR 30 bn is allocated to support SMEs).
Export, internationalisation and investments – SACE’s insurance and security services
Art. 2, para. 1, points (a) and (b), of the Liquidity Decree
SACE This article amends Art. 6 of Law Decree No. 269 of 30 Sep. 2003 (which governs SACE’s provision of financial support for exports and internationalisation) as follows:
(i) The commitments SACE undertakes on or after 1 Jan. 2021 to provide guarantees for insurance and securities concerning the risks defined as non-market risks under EU regulations will be assumed:
• by the state for 90% of the capital and interest of each commitment, without any solidarity constraint; and
• by SACE for the remaining 10% of the capital and interest of each commitment.
(ii) SACE issues the above securities and
N/A This new co-insurance system will be based on the following steps:
(i) The Budget Law defines the cumulative limits on the assumption of commitments by SACE and the Ministry of Economy and Finance on behalf of the state.
(ii) The Interministerial Committee for Economic Planning annually approves the plan of activities and the risk limit system; the committee also determines which transactions have a concentration risk for which the Ministry of the Economy and Finance’s approval is required to issue guarantees.
(iii) SACE and the Ministry of the Economy is expected to sign a ten-year agreement to govern the report and the procedures for the issuance of guarantees and insurance coverage by SACE, among other things.
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insurance in its own name and on behalf of the state.
(iii) The issuance of securities and insurance that could entail high concentration risks, in relation to portfolios entirely insured by SACE and the Ministry of Economy and Finance, with individual counterparties, groups of connected counterparties or countries of destination is subject to approval by the Ministry of Economy and Finance (by decree), after consultation with the Committee for Official Export Support.
(iv) An Official Export Support Committee41 is to be established and entrusted with the following functions:
• advisory concerning the adoption of the Ministry of Economy and Finance decree referred to in point (iii) above;42 and
• approval of the ten-year agreement (convenzione
The Interministerial Committee for Economic Planning will have to approve this agreement by resolution, upon the proposal of the Minister of Economy and Finance and the Minister of Foreign Affairs and International Cooperation’s. It will then be submitted to the Court of Auditors for registration.
41 The committee will comprise the Director General of the Treasury or his/her delegate, the Director General of the Ministry of Foreign Affairs and International Cooperation (co-chair), and six other members appointed by decree of the
Ministry of Economy and Finance on the basis of nominations from the Ministry of Economy and Finance, the Ministry of Foreign Affairs and International Cooperation, the Ministry of Interior, the Ministry of Economic Development, the
Ministry of Defence and the Ministry of Agricultural, Food and Forestry Policies. The committee will replace the one referred to in Decree No. 3245 (as subsequently amended/supplemented) of the Minister of Economy and Finance of 13
Feb. 2015.
42 The Central Insurance Supervisory Authority’s advisory power has been revoked, but the authority maybe involved by the Official Export Support Committee.
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decennale) between SACE and the Ministry of Economy and Finance.
(v) SACE’s existing commitments on the date of entry into force of the Liquidity Decree (i.e., 9 Apr. 2020) that derive from insurance and security services for risks defined as non-market risks under EU regulations remain governed by the rules and agreements in force on 7 Apr. 2020, but the state reinsures 90% of each commitment, except for:
(A) those for which an indemnity claim has already been filed or SACE has been notified of the occurrence (or imminent risk of) a claim event (or threat thereof) of a claim event;
(B) those for the cruise operations set out the decree and that are directly secured by the state; and
(C) those relating to non-market risks assumed with respect to transactions involving strategic sectors for Italy or companies of significant national interest in terms of employment levels, turnover or the economy, which can entail high concentration risks for SACE with individual counterparties, groups of connected counterparties or countries of destination – for which the Ministry of Economy and Finance has issued the
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guarantee within the limits expressly provided for by the decree.
(vi) The commitments SACE undertakes between 9 Apr. and 31 Dec. 2020 remain governed by the rules and agreements in force on 7 Apr. 2020, but the Ministry of Economy and Finance may adopt further measures (by decree) to enable 80% of each commitment to be reinsured by the state, with the exception of the commitments described under points (v), (B) and (C) above.
Export, internationalisation and investments – SACE’s insurance and security services
Art. 2, para. 1, point (c), of the Liquidity Decree
Italy-based companies In addition to the ordinary security and insurance services relating to risks in the export and internationalisation sectors, SACE is authorised to issue securities (in any form) in favour of banks, national and international financial institutions and other Italian authorised credit institutions at market conditions and in compliance with EU regulations. The guarantee is intended to secure loans granted by the latter (in any form whatsoever) to companies based in Italy.
This additional guarantee is up to a maximum of EUR 200 bn, with a separate budget from SACE’s ordinary one.
In relation to the commitments, SACE is automatically granted a first-demand state guarantee.
N/A. Lenders cannot directly benefit from the state guarantee because it is exclusively in SACE’s favour.
The Ministry of Economy and Finance, jointly with the Ministry of Foreign Affairs and International Cooperation, and the Ministry of Economic Development, will adopt further measures (by decree) to provide the criteria and methods for SACE to issue these securities and for the state guarantee to be effective.
Support, through guarantee mechanisms, for the liquidity
Art. 57 of Cura Italia
• Companies not eligible for the
• The following provisions are aimed at facilitating access to financing by entities
N/A • The criteria, terms and conditions for the granting of the support and guarantee
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of companies affected by the Covid-19 epidemic
Decree guarantee of the SMEs Guarantee Fund and operate in sectors to be identified by
ministerial decree43
• Banks and other authorised credit institutions
• CDP
other than those eligible for the guarantees of the SMEs Guarantee Fund:
- Lending institutions that grant loans to companies (other than those eligible for the Central SMEs Guarantee Fund’s benefits) that have suffered a reduction in turnover due to the Covid-19 health emergency may benefit from CDP’s support through specific instruments, e.g.: funding ceilings (plafond di provvista) and/or guarantees, inc. first-loss guarantees.
- CDP may benefit from an onerous, unconditional and irrevocable State guarantee to cover its exposure to the banking sector for up to 80%.
• The Ministry of Economy and Finance has set up a fund to cover the State guarantees granted under this provision, with an initial
budget of EUR 500 m for 2020.44
instruments, and the related enforcement procedure, will be established by decree of the Ministry of Economy and Finance, in agreement with the Ministry of Economic Development.
• The decree will also identify the sectors in which companies must operate to be eligible. In any case, complementarity with the SMEs Guarantee Fund must be ensured.
43 Art. 13 of the Liquidity Decree, which repealed Art. 49 of the Cura Italia Decree (as detailed below), also extends the scope of the SMEs Guarantee Fund to companies with up to 499 employees. It would thus appear that not only SMEs but
also companies with up to 499 employees are excluded from the measure in question. In any case, this will be clarified in the measure’s implementing regulations.
44 Based on the report on the Chamber of Deputies’ preparatory work (available in Italian here), it appears that, while awaiting implementation of this measure, an additional EUR 2 bn could be added to this fund to provide medium-sized and
large companies support for temporary liquidity needs, working capital support and support for investments envisaged in their development plans. In this regard, bear in mind that – as indicated in a press release issued by CDP (available in
Italian here) – the measure targets “medium-sized and large enterprises (indicatively with a turnover exceeding EUR 50 m)”.
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Financial support for SMEs affected by the Covid-19 epidemic45
Art. 56 of Cura Italia Decree
• SMEs (as defined above) with registered office in Italy46
• Self-employed
workers (lavoratori
autonomi) and
Professionals
(professionisti) with
VAT No. 47
• SMEs whose debt exposures are already classified as impaired are expressly excluded from the scope of this measure
• SMEs may avail themselves of the extraordinary moratorium instruments listed below for debts to credit institutions by simple request accompanied by a self-certification attesting that they have suffered temporary liquidity shortages as a result of the Covid-19 epidemic:
- For bank overdraft credit facilities (aperture di credito a revoca) and credit lines providing advances on receivables (anticipi su crediti esistenti) existing on or before 29 Feb. (or the date of publication of the decree if later): the total amount granted (i.e., both drawn and undrawn amounts) cannot be revoked in whole or in part until 30 Sept.
- For bullet loans that mature before 30 Sept.: the loan agreements (together with their respective ancillary aspects) are extended to 30 Sept. under the same conditions and without any formalities.
- For loans and other financings repayable in instalments: instalments or lease payments due before 30 Sept. are suspended until 30 Sept., and their
30 Sept. 2020
• SMEs and self-employed workers wishing to benefit from this measure must send a request to the lender accompanied by a self-certification (under Art. 47 of Presidential Decree No. 445/2000) attesting, among others, that they have suffered a partial or total loss of business as a direct consequence of the Covid-19 emergency.
45 This special section of the Central SMEs Guarantee Fund has a budget of EUR 1.73 bn.
46 The Miinistry of Economy and Finance’s FAQ (updated on 2 Apr. 2020) clarifies that if an SME is controlled by another company, the SME requirements under Recommendation 2003/361/EC must be met by the group as a whole.
47 The extension in favour of self-employed workers and professionals with VAT No. is expressly allowed by the Ministry of Economy and Finance, as clarified in its FAQ (updated on 2 Apr. 2020).
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repayment schedule is deferred (together with ancillary aspects, and without any formalities) in a manner that ensures the absence of new or increased charges for
both parties.48
• The above operations are also eligible, at the request of lenders (to be submitted online and with no prior assessment needed), for the free-of-charge, subsidiary guarantee under a special section of the SMEs Guarantee Fund, which can guarantee up to 33% of the amounts drawn or of the
extended/suspended instalments.49
Central SMEs Guarantee Fund50
Art. 49 of the Cura Italia Decree, which was revoked
SMEs (i.e., companies with fewer than 250 employees and an annual turnover of EUR 50 m or less or a total annual balance
Art. 13 of the Liquidity Decree confirms the following temporary measures under Art. 49 of Cura Italia Decree, derogating from the Central SMEs Guarantee Fund:
(i) guarantees are issued free of charge and no fee in the event of non-
31 Dec. 2020 The effectiveness of the measures set forth under point (I) of the column “Details” was subject to the approval, granted on 14 Apr., of the European Commission, under Art. 108 of the Treaty on the Functioning of the European Union59.
No change to the way to request/activate the
48 The Ministry of Economy and Finance’s FAQ (updated on 2 Apr. 2020) clarifies as follows (available in Italian here, under the section Moratoria prestiti):
[...] if the suspension applies only to the principal portion of the instalment due, the amortisation schedule is shifted forward for a period corresponding to the suspension granted. Interest on outstanding principal is
to be paid by the original due dates. If the entire instalment (principal and interest) is suspended, the amortisation schedule is shifted forward for a period corresponding to the suspension granted. Interest accruing
during the suspension is calculated on the outstanding principal at the interest rate stipulated in the original loan agreement. The amount corresponding to this interest will be divided into instalments over the
remaining amortisation period.
49 Applicants (i.e., banks, financial intermediaries, and credit guarantee consortia) interested in this support must submit an application form (available in Italian here) using the online portal on the SMEs Guarantee Fund’s website..
50 Fondo di Garanzia PMI; see Art. 2, para. 100, point a, of Law No. 662 of 23 Dec. 1996. On 29 Mar. 2020, the Italian Ministry of Economy and Finance announced the constitution of a task force with the Italian Banks’ Association, MCC (the
operator of the fund) and the Central Bank of Italy to ensure the application of the measures; the task force was established in the first week of Apr..
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and replaced by Art. 13 of the Liquidity Decree
sheet of up to EUR 43 m),51 and, in accordance with Art. 13 of the Liquidity Decree, companies with up to 499 employees.52
The Liquidity Decree confirms that companies with exposure classified as “non-performing” are excluded from benefiting from the guarantee, but it extends the measure to those that:
(i) have, on the date of request for
completion/delay in completion of the financial transaction;
(ii) the maximum amount guaranteed for each company is increased to EUR 5 m, in compliance with EU regulations;
(iii) the percentages of coverage for each company are increased for both direct guarantees and reinsurance (80% and 90%, respectively);
(iv) the guarantee can be issued also if debt renegotiation transactions have been carried out if, in the re-negotiations, additional credit is granted for at least 10% of the debt being renegotiated;
(v) the term of the guarantee is automatically extended if loan repayment instalments are suspended
due to the Covid-19 emergency;53
guarantee; the fund’s operational guidelines (enacted on 15 Mar. 2019) still apply.
Requests must be submitted to, and managed by, the respective lender
However, if the new financing referred to in point (A)(a) of the column “Details” exists, the Central SMEs Guarantee Fund automatically grants assistance, without assessment, if the lender has applied the conditions mentioned in this article.60
In this case, the lender grants the guaranteed financing subject to formal verification that the conditions are satisfied.
The article expressly states that if the anti-mafia documentation relating to the beneficiary (legal entity) is not immediately available at the time of application, the guarantee will be granted in accordance with the fund’s procedures, but the issuance of the guarantee will be subject to receipt
59 Please see the European Commission’s press release, available here.
51 Art. 2 (Staff headcount and financial ceilings determining enterprise categories) of the annex to Recommendation 2003/361/EC (pp. 36–41 in the EU’s Official Journal, L 124, 20 May 2003) sets out the definition of micro, small and
medium-sized enterprises at European level.
52 As also clarified in the Council of Ministers’ Press Release No. 39 of 6 Apr. 2020 (see here). Art. 13 allows the Central SMEs Guarantee Fund to “provide liquidity also for companies with up to 499 employees” (thus derogating from the
limit of 250 employees to be classified as an SME, in Recommendation 2003/361/EC); it is unclear whether these companies must comply with the financial requirements under Recommendation 2003/361/EC (i.e., a maximum annual
turnover of EUR 50 m or a maximum annual balance sheet of EUR 43 m). Based on a literal interpretation (which is also supported by the Ministry of Economic Development’s reference to extending the scope of the SMEs Guarantee
Fund to include “large companies with up to 499 employees”, available in Italian here), these requirements do not seem to apply.
53 Applicants (i.e., banks, financial intermediaries, and credit guarantee consortia) that wish to submit a request for a guarantee from the Central SMEs Guarantee Fund and wish to have loan repayments suspended due to the Covid-19
emergency with the consequent automatic extension of the term of the guarantee must submit the appropriate application form (available in Italian here) using the online portal on the SMEs Guarantee Fund’s website.. Applicants interested
only in having loan repayments suspended due to the Covid-19 emergency must submit a different form (available in Italian here).
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the guarantee, unlikely-to-pay or past due or impaired (scadute o sconfinanti deteriorate) debts, provided that the classification does not precede 31 Jan. 2020; and
(ii) have, after 31 Dec. 2019, been admitted to a pre-bankruptcy arrangement with creditors that entails business continuity (concordato con continuità aziendale) (under Art. 186-bis of Royal Decree 267/1942), have entered into debt restructuring
(vi) the evaluation of the “trend form” (modulo andamentale) is excluded for the purpose of accessing the fund;
(vii) the guarantee may, subject to conditions, be combined with other forms of guarantees securing financing related to real estate investments in the hospitality/tourism and real estate sectors; and
(viii) the proportion of the junior tranche covered by the fund may be increased by 50% (70% if additional guarantors are involved in relation to guarantees given on funding portfolios dedicated to companies damaged by the Covid-19 emergency, or belonging at least 60% to specific sectors/branches affected by the epidemic).
The Liquidity Decree also envisaged, among others, the following additional derogations from the ordinary provisions and temporary measures:
I. The thresholds, with reference to the measures under point (iii) above, will be raised to 90% and 100% (for direct guarantees and reinsurance,
of the required anti-mafia documentation.
60 Point J) reads as follows: “An interest rate, in the case of a direct guarantee, or a total guarantee premium in the case of reinsurance, which takes into account only the costs of appraisal and management of the financial transaction and, in any
case, does not exceed hours at the Rendistato rate with residual maturity of between 4 years and 7 months to 6 years and 6 months, increased by the difference between the 5-year bank CDS and the 5-year ITA CDS, as defined in the
framework agreement for the financial advance as a pension guarantee referred to in Art. 1, paras. 166–178. of Law No. 232, increased by 0.2%”.
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agreements (accordi di ristrutturazione dei debiti) (under Art. 182-bis of Royal Decree 267/1942), or have submitted a certified debt restructuring plan (piano attestato di risanamento) (under Art. 67 of Royal Decree 267/1942), provided that their exposure on 9 Apr. 2020 would not have led to their
respectively), subject to the European Commission’s authorisation, for financial transactions with a term of up to 72 months and that comply with certain requirements.54
II. The automatic extension of the term of the guarantee, with reference to measures under point (v) above, also applies if the maturity date of the loan has been suspended (not only if a moratorium/suspension exists).
III. Measures are introduced also regarding guarantees granted on investment portfolios dedicated to companies damaged by the Covid-19 emergency in which at least 20% are companies with a maximum rating of “BB” on the Standard’s and Poor’s rating scales on the date of inclusion of the transaction in the portfolio.55
54 The Liquidity Decree stipulates that the total amount of the financial transactions must not exceed:
1) double the beneficiary’s annual wage and salary costs (inc. social security contributions and the cost of personnel working at the company’s premises but on the payroll of subcontractors) for 2019 or the last year available;
2) 25% of the beneficiary’s total 2019 turnover; and/or
3) the requirements for working capital and investment costs in the following 18 months for SMEs and in the following 12 months for enterprises with up to 499 employees.
55 These are the main measures:
(a) the maximum amount of the loan portfolios is raised/loan portfolios raise their maximum amount to EUR 500 m;
(b) loans for the term and amount set out in Art. 13, para. 1, point c), of the Liquidity Decree may be approved and disbursed by the lender before requesting the guarantee on a loan portfolio provided that the loan was not approved
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classification as impaired, that they will not have any outstanding debt after applying the granting measures, and that the bank, on the basis of the analysis of the debtor’s financial situation, can reasonably expect that the exposure will be repaid in its
IV. New medium-/long-term financing transactions56 for a maximum of 25% of the beneficiary’s revenues and a maximum of EUR 25 k, and whose repayment (by capital fate) does not begin until 18/24 months after disbursement, in favour of SMEs or natural persons carrying on business, arts or professions that have been damaged by the Covid-19 emergency may benefit from the guarantee with 100% coverage for both direct
guarantee and reinsurance57.
V. Financial transactions executed and paid out by the lender up to 3 months after the date of the application and
before 31 Jan. 2020;
(c) beneficiaries are admitted without assessing the fund manager’s creditworthiness;
(d) the junior tranche of the loan portfolio’s detachment point and thickness must be determined using the probability of default calculated by the applicant on the basis of its internal models;
(e) the guarantee must cover up to 90% of the junior tranche of the loan portfolio;
(f) the portion of the junior tranche the fund covers may not exceed 15% of the loan portfolio, or 18% if the portfolio is for loans granted for research, development and innovation projects and/or investment programs;
(g) the fund, in relation to individual funding included in the guaranteed portfolio, shall cover 90% of the loss recorded on the individual funding; and
(h) financing may also be granted to enterprises in regions where the intervention of the SME Guarantee Fund has been limited to the counter-guarantee of regional guarantee funds and collective guarantee consortia.
56 This provision clarifies that the term “new loan” may be used when, following granting, the lender’s total exposure to the borrower is higher than the number of exposures held on 9 Apr. 2020, adjusted for reductions in exposures between
the two dates as a result of the contractual settlement established between the parties before 9 Apr. 2020 or by the borrower’s independent decision. The ABI’s circular of 24 Apr. 2020 clarifies that the “new loan” in question “may not be
used to offset any pre-existing loan, whether in the form of an overdraft or other loan. Such offsetting would mean repayment of the principal began before the 24 months after disbursement, causing the guarantee to lapse”.
57 The form borrowers must submit to applicants (i.e., banks, financial intermediaries, and credit guarantee consortia) is available in Italian here.
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entirety when due.
after 31 Jan. 2020 may benefit from the guarantee. In this case, the lender must provide the fund manager a statement of the reduction in the interest rate applied to the secured loan as a result of the guarantee.
VI. The fund’s guarantee may be combined – under certain conditions – with other forms of guarantee granted by other third parties, up to 100% coverage for borrowers58 whose businesses have been affected by the Covid-19 emergency, whose revenues are EUR 3 m maximum, and which benefit from loans of up to a maximum of 25% of the revenues.
Guarantee Fund61 for SMEs based in the municipalities listed in Annex 1 to the Prime Ministerial Decree of 1 Mar. 202062
Art. 49-bis of the Cura Italia Decree
• SMEs63, inc. companies in the agri-food sector, based or with branches in the municipalities of: (a) Bertonico, (b) Casalpusterlengo, (c)
This article states the following temporary measures, derogating from the ordinary rules of the SMEs Guarantee Fund:
• guarantees are given priority and issued free of charge, for a maximum amount of EUR 2.5 m per company;
• the percentages of coverage for each
2 Mar. 2021 The Cura Italia Decree does not affect the way in which the SMEs Guarantee Fund guarantee is requested/issued; therefore, the SMEs Guarantee Fund operational provisions, which entered into force on 15 Mar. 2019, remain applicable.
As with the operational guidelines provided in the Central SMEs Guarantee Fund section above, eligible beneficiaries must address their request for
58 The article refers to “borrowers”, without distinguishing between SMEs, other types of companies or individuals.
61 For more details on the SMEs Guarantee Fund, see the section on the Central SMEs Guarantee fund (above).
62 The Prime Ministerial Decree of 1 Mar. 2020, which established the “red zone”, has been repealed.
63 For the definition of “SME” please see the section on the Central SMEs Guarantee Fund (above).
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Castelgerundo, (d) Castiglione D’Adda, (e) Codogno, (f) Fombio, (g) Maleo, (h) San Fiorano, (i) Somaglia, (l) Terranova dei Passerini, and (m) Vò.
company are increased for both direct guarantees and reinsurance (80% and 90%, respectively).
This article appears to be a special application of the SMEs Guarantee Fund provision above. It applies only to SMEs (so not also companies with up to 499 employees) in the listed areas, envisages no further conditions compared to the ordinary provisions of the SMEs Guarantee Fund, has a longer term, and offers more limited benefits. However, it is unclear whether these measures are meant to be an (optional or compulsory) alternative to the ordinary SMEs Guarantee Fund or complementary to it.
• The above provisions must be interpreted in accordance with European and national State aid law.
access to the measure in question to their lenders and not directly to the SMEs Guarantee Fund.
• The Ministry of Economy and Finance, jointly with the Ministry of Economic Development, may adopt further measures (by decree) to extend the term of the measures set out under this article – for specific periods of time and
within the limits of the resources provided for64 – in favour of SMEs located in areas other than those indicated in Annex 1 to the Prime Ministerial Decree of 1 Mar. 2020. This extension may be justified in view of the exceptional economic impact these companies suffered due to their geographical proximity to the areas indicated in the above Annex 1, or in view of the fact that they belong to a particularly affected sector, even only in certain areas (which may not necessarily be adjacent to those indicated in the above Annex 1).
Financial support for companies
Art. 55 of Cura Italia Decree
• Companies that assign impaired receivables (i.e., for which payment is more than 90 days overdue) against payment (a titolo oneroso)
• The measure does
• Assignors may convert deferred tax assets (DTAs) into a tax credit (effective from the date of assignment) if the DTAs relate to:
- tax losses not yet calculated as a reduction in taxable income under Art. 84 of the Italian Income Tax Code (without considering the limits envisaged for entities benefitting from a profit
This measure applies to all assignments of impaired receivables against payment carried out by 31 Dec. 2020
• The conversion is optional and is subject to the exercise of the option rights under Art. 11, para. 1, of Law Decree No. 59 of 3 May 2016, which entails payment of a fee if an actual tax payment does not correspond to the DTAs.
• The conversion does not require the DTAs relating to the relevant items (i.e., ACE losses or surpluses) to be recorded in the financial
64 For the purposes set out in this article, EUR 50 m has been allocated to the SMEs Guarantee Fund for 2020.
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not apply to:
- companies that have been declared bankrupt or insolvent; or
- intercompany assignments of receivables
exemption scheme); and
- economic growth support (ACE, Aiuto alla Crescita Economica) surpluses not yet deducted or received through tax credit.
• For the purposes of conversion into a tax credit:
- the above items may be considered for no more than 20% of the nominal value of the assigned receivables; and
- the nominal value of the assigned receivables may be considered for a maximum of EUR 2 bn., taking into account all assignments carried out by 31 Dec. (inc. intercompany assignments).
• From the effective date of the assignment:
- losses relating to convertible DTAs may not be calculated as an income tax reduction; and
• ACE surpluses relating to convertible DTAs are neither deductible nor receivable through tax credit.
statements.
• Tax credits do not generate interest, do not contribute to the constitution of the tax base and may be:
- offset without limit of amount;
- transferred under Arts. 43-bis or 43-ter of Presidential Decree No. 602/1973; or
- requested for refund.
Implementation of First Home Mortgage Solidarity Fund65
Art. 54 of Cura Italia Decree
• Self-employed workers (lavoratori
autonomi)66
• The following temporary measures derogate from the fund’s ordinary provisions:
17 Dec. 2020 and
9 Jan. 2021
Applications for suspension must be submitted directly to the lending bank using the forms available on the following websites:
65 This fund (Fondo Solidarietà Mutui Prima Casa, also known as Fondo Gasparrini) was set up by the Ministry of Economy and Finance for first-home buyers. It enables employees who took out a mortgage loan to purchase their first home to
suspend mortgage payments for up to 18 months if they find themselves in a temporary difficult financial situation.
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Art. 12 of the Liquidity Decree
• Professionals (liberi professionisti)
• Employees (lavoratori subordinati e parasubordinati) already benefit from this measure67
- Self-employed workers and professionals68 are eligible for a suspension of mortgage payments for up to 18 months69 if they self-certify that they have recorded, in a quarter following 21 Feb. (or in the shorter period between the date of application and 21 Feb.), a 33% or more decrease in revenue compared to the last quarter of 2019, and that the decrease is due to closure or restriction of their work following Covid-19 emergency measures.
- Access to the fund does not require submission of the Equivalent Economic Situation Indicator (ISEE);
- Access to the fund is permitted for mortgages worth a maximum of EUR 400 k;
- The suspension of mortgage payments may be granted also for
with reference to loans under the fifth bullet of the “Details” column
• www.dt.tesoro.it
• www.consap.it
The lending bank submits the application to the public company in charge of providing public insurance services (CONSAP S.p.A.), which authorises the suspension after verifying the applicant’s eligibility.
66 Art. 12 of the Liquidity Decree defines “self-employed workers” as freelancers with an active VAT number as at 23 Feb. 2020 and workers with an active engagement on a continuative and coordinated basis as at the same date, who are
enrolled in the separate national pension scheme under Art. 2, para. 26, of Law No. 335 of 8 Aug. 1995, are not pensioners and are not enrolled in other compulsory social security schemes.
67 Art. 26 of Law Decree No. 9 of 2 Mar. 2020 also extends the fund’s scope by adding “suspension from work or reduction in working hours for at least 30 days” to the reasons that can be invoked to support a suspension request.
68 Pursuant to the discipline set forth under the Ministerial Decree issued by the Italian Ministry of Economy and Finance on 25 Mar. 2020, (i) the eligible self-employed works are those who carry out an activity captioned under art. 1 of Italian
Law No. 81/2017; and (ii) the eligible professionals are those registered with professional bodies or members of professional associations registered with the Italian Ministry of Economic Development under Italian Law No. 4/2013 as
certified according to such Law.
69 According to Art. 5 of the Ministerial Decree issued by the Italian Ministry of Economy and Finance on 25 Mar. 2020, in calculating the maximum period of the suspension (18 months), it shall be not considered any possible suspension
previously applied to the financing, provided that the reimbursement of such financing has been duly performed by the debtor during the last three months.
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mortgages that already benefit from the guarantee of the “First Home
Fund”.70
- Art. 12 of the Liquidity Decree states that for a period of nine months from the date of entry into force of the decree (i.e., until 9 Jan. 2021), loans that have been amortised for less than one year may benefit from the provisions set forth under this article.
- In addition to the above, this article clarifies that the suspension of mortgage payments may be granted – even after the emergency is over and the effectiveness of the measure in question expires – also to borrowers who have been suspended from work or had their working hours reduced for at least 30 days, even if the borrowers are still awaiting authorisation of income support measures.
Suspension of loans for economic operators who are
Art. 54-quarter of
Borrowers who are victims of usury as per
• Eligible borrowers’ mortgage payments are suspended, in derogation from ordinary
31 Dec. 2020 The article states that suspended mortgage payments are to be repaid by extending the original
70 This guarantee fund for first-home buyers (Fondo Prima Casa) was established by the Ministry of Economy and Finance under Art. 1, para. 48, point c), of Law No. 147 of 27 Dec. 2013 (known as the 2014 Stability Law). This fund provides
first-demand guarantees on mortgages for a maximum amount of EUR 250 k, for the purchase – inc. with renovation works (provided they increase energy efficiency) – of real estate units in Italy to be used as the borrower’s main residence.
The Interministerial Decree of 31 Jul. 2014 (published in Official Gazette No. 226 of 29 Sept. 2014) sets out the rules governing implementation of the First-Home Fund and identifies Consap S.p.A. as the fund’s manager.
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victims of usury the Cura Italia Decree
Art. 14 of Law No. 108
of 7 Mar. 199671
provisions.
• Moreover, unpaid mortgage payments due in Feb. 2020 and Mar. 2020 are suspended.
amortisation schedule.
The article also states that enforcement proceedings relating to the mortgages referred to therein are suspended.
Amendments to the Savers Indemnity Fund72
Art. 50 of Cura Italia Decree
Holders of shares/bonds issued by banks placed in compulsory administrative liquidation between 16 Nov. 2015 and 1 Jan. 2018, as defined in Art. 1, para. 494, of Law No. 145 of 30 Dec. 2018 (“Savers”)
• The following temporary measures derogate from the ordinary provisions:
• Savers can receive an advance payment (i.e., pending finalisation of the allocation plan (piano di riparto)) of the indemnity due to them for up to 40% of the indemnity decided by the Technical Commission (as identified in the 2019 budget law).
• The deadline for submission of advance payment claims is extended from 18 Apr. to 18 Jun.
N/A Applications and related attachments must be submitted online
(https://fondoindennizzorisparmiatori.consap.it), from Aug. 2019 until 18 Jun. 2020.
Suspension of repayment terms for Fund 394/8173
Art. 58 of Cura Italia Decree
Companies benefitting from subsidised loans under Fund 394/81
• Payment of principal and interest on instalments due in 2020 of subsidised loans granted under Fund 394/81 may be suspended for up to 12 months
31 Dec. 2020
• No indication provided as to the operational procedures to activate the benefit; nor does it leave the regulation of these aspects to implementing measures.
71 The solidarity fund for victims of usury (recently renamed the “solidarity fund for victims of mafia-type crime, extortion, usury and intentionally violent crimes, and for children orphaned due to domestic offences”) was set up under Art. 14
of Law No. 108. It envisages the disbursement of interest-free loans for up to 10 years to people who carry out entrepreneurial, commercial, artisanal or in any case economic activities, or an art or profession, and who declare that they are
victims of usury and are offended parties in the corresponding criminal proceedings. The loans are granted tax-free.
72 Fondo Indennizzo Risparmiatori, instituted by Law No. 145 of 30 Dec. 2018 (as amended and supplemented) in accordance with and for the purposes of Law No. 58 of Jun. 2019 and Law No. 169 of 27 Dec. 2019.
73 This fund (set up under Art. 2, para. 1, of Law Decree No. 251 of 28 May 1981) is managed by Simest S.p.A. to support the internationalisation of exporting companies. As also set out in the explanatory memorandum to the Cura Italia
Decree, this measure will affect 1,457 companies in all sectors.
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• This suspension does not appear to automatically go into effect at the debtor’s request but is subject to the fund’s evaluation
• The ordinary communication methods should be followed in the absence of specific directives.
Support for Italian regions’ purchase of goods needed to cope with the Covid-19 epidemic
Art. 59 of Cura Italia Decree
• Foreign companies supplying regions with goods related to the management of the Covid-19 health emergency
• Italian and foreign banks and financial institutions
• SACE S.p.A.
• SACE is temporarily authorised to issue guarantees and insurance cover – at market conditions and that may, in turn, benefit from a State guarantee – to the following entities:
- foreign companies supplying the regions with goods related to the management of the Covid-19 emergency; and
- Italian and foreign banks and financial institutions that comply with adequate principles of supervision, capitalisation and operations, for loans granted in any form to finance the activities under the above bullet point and any related activities.
When the Covid-19 health emergency is over
SACE will set out the operational procedures based on its own governance rules and within the limits indicated annually by the budget law.
Internationalisation and strengthening of assistance to Italian nationals abroad in difficult situations
Art. 72 of Cura Italia Decree
All companies • The “Integrated Promotion Fund”74 is to be established to carry out, among others, the following initiatives:
- extraordinary communication campaign to support exports and internationalisation in the agri-food sector and other sectors affected by the
The derogation from the Public Procurement Code applies until 31 Dec.
The fund’s operational procedures and purposes will be set out by decree of the Ministry of Foreign Affairs and International Cooperation, in agreement with the Ministry of Economy and Finance.
74 The fund has an initial allocation of EUR 150 m for 2020.
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Covid-19 health emergency;
- co-financing of promotional initiatives aimed at foreign markets; and
- creation of a separate section under
Fund 394/8175 for the granting of non-repayable co-financing of up to 50% to companies benefitting from subsidised loans under Fund 394/81.
• To streamline and speed up the procedures for awarding supply, works and service contracts relating to the above initiatives, negotiated procedures may be used without prior publication of the notice (in accordance with Art. 63, para. 6, of the Public Procurement Code).
• This article also introduces new measures to strengthen assistance to Italian nationals living abroad who are in difficult situations.
2020.
Additionally, the disbursement of subsidies to Italian nationals living abroad who are in difficult situations is authorised until 31 Jul.
2020.76
Support for beneficiaries of
subsidised loans
Art. 72-ter of Cura Italia
Companies based or
with branches in the
municipalities listed in
• Instalment payments due before 31 Dec. 2020 on low-interest loans granted by Invitalia are suspended for up to 12 months, and the amortisation schedules are extended
31 Dec. 2020 Suspension requests must be submitted by 2 May
2020.
75 For more on Fund 394/81, please see this document’s commentary on Art. 58.
76 As also specified in the Chamber of Deputies’ report of 22 Apr. 2020, up to EUR 4 m in subsidies may be granted for the year 2020; these subsidies need not be reimbursed and are available even to nationals who are not resident in a
consular district.
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Decree Annex 1 to the Prime
Ministerial Decree of 1
Mar. 202077 that are
borrower of low-
interest loans granted
by Invitalia (national
agency for inward
investment and
economic
development).
accordingly. Furthermore, instalment payments due before 31 Dec. 2020 under transactions already executed with Invitalia on or before 2 Mar. 2020 are suspended for 12 months.
This measure applies also to low-interest loan agreements already terminated by Invitalia due to the borrower defaulting on instalment payments if the relevant credit has not yet been registered and no litigation has initiated.
Support for the agricultural
and fisheries sector
Art. 78 of Cura Italia Decree
Agricultural
enterprises, fisheries
and aquaculture
enterprises
• A fund is to be established to ensure the
business continuity of eligible enterprises.78
• The fund is set up for:
- total coverage of interest expenses on bank loans for working capital and debt restructuring;
- coverage of interest expenses accrued over the last two years on loan agreements entered into by eligible enterprises; and
- the suspension of the business operations of enterprises in the fisheries
N/A
The increase in the percentage of CAP contributions is effective until 31 Dec. 2020.
The benefits for enterprises
The fund’s criteria and methods of operation and implementation, and the provisions relating to CAP contributions, are to be set out by decree of the Ministry of Agricultural, Food and Forestry Policies; the decree is to be adopted only after having informed the Permanent Conference for Relations between the State, the Regions and the Autonomous Provinces of Trento and Bolzano and, in any case, by 19 May 2020.
As to the possibility of subjecting products to a revolving pledge, a decree of the Ministry of Agricultural, Food and Forestry Policies will establish the type of registers to be used (differentiated based on the products), the
77 The municipalities of: (a) Bertonico, (b) Casalpusterlengo, (c) Castelgerundo, (d) Castiglione D’Adda, (e) Codogno, (f) Fombio, (g) Maleo, (h) San Fiorano, (i) Somaglia, (l) Terranova dei Passerini; and (m) Vò.
78 This fund is set up by the Ministry of Agriculture, Food and Forestry, with a budget of EUR 100 m for 2020.
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and aquaculture sector.
This article envisages the following (among other things), subject to the fulfilment of certain conditions:
- a temporary increase in the percentage
(from 50% to 70%) of CAP79 contributions for which agricultural enterprises can request advance payment;
- the possibility for public administrations that grant aid, benefits and financial contributions to agricultural enterprises to postpone certain checks and fulfilments required by law at the time of payment of the balance (e.g., the obligation to verify, online and in real time, that contributions have been duly paid to the Italian Social Security Authority and the Italian Insurance Authority for Accidents at Work, and the obligation to obtain anti-mafia documentation from the national anti-mafia database), with payment of the advance subject to a termination clause;
- the possibility for agricultural enterprises to avail themselves of assistance from the
SMEs Guarantee Fund80, inc. the possibility for organisations representing agricultural enterprises at national level to participate in
in the floriculture sector are available from 29 Apr. 2020 to 15 Jul. 2020, whereas VAT payments are suspended between 1 Apr. 2020 and 30 Jun. 2020.
This article also stipulates that the notice for incentives related to biogas plants operated (under certain conditions) by farmers must be published by 30 Sept. 2020.
registration methods, how to keep the registers, and the procedure for registering the establishment and extinction of the revolving pledge.
Lastly, the criteria and procedures for granting interest-free loans to agricultural enterprises and for covering the expected charges will be set out by decree of the Ministry of Agricultural, Food and Forestry Policies, to be adopted in agreement with the Permanent Conference cited above by 29 May 2020.
79 CAP stands for the EU’s Common Agricultural Policy, which is the set of rules that the EU has established for the agricultural sector.
80 For the definition of SME and further information on the SMEs Guarantee Fund, please see the Central SMEs Guarantee Fund section (above).
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the body responsible for deciding on the
granting of guarantees;81
- certain requirements relating to the monitoring of agricultural workers’ health;
- the possibility of subjecting agricultural products and foodstuffs with a protected geographical indication, inc. wine products and spirits, to a revolving pledge within the meaning of Arts. 2786 et seq. of the Italian
Civil Code, where compatible;82 and
- the duty to provide appropriate anti-mafia documentation for those who benefit from
government grants in excess of EUR 5 k.83
Additionally, this article states (among other things):
- the suspension of payments of withholding taxes, social security and welfare contributions, and VAT payments for companies in the floriculture sector;
- the publication, by 30 Sept. 2020, of the notice for incentives related to biogas plants
81 It is unclear whether this option is in addition to access to the fund set up under this article or is an alternative to access to the fund.
82 Under the provisions of the Italian Civil Code cited above, the pledge is established by “dispossession”, i.e., by delivering to the creditor the item concerned or a document that confers exclusive power to dispose of that item. The concept of
a revolving guarantee refers to a form of collateral that allows the item acting as collateral to change or be replaced over time without entailing, at each replacement, novation of the relationship (i.e., it does not require the parties to repeat the
procedures required to establish the bond). As to revolving pledges, the parties agree on the possibility of replacing the asset originally pledged as security, without this replacement entailing novation of the security relationship, provided the
asset offered as a replacement has the same value.
83 The provision originally envisaged this duty only for those who benefitted from European contributions.
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operated (under certain conditions) by farmers;
- the granting of interest-free loans to agricultural enterprises located in the municipalities indicated in Annex 1 to the
Prime Ministerial Decree of 1 Mar. 2020,84 and the establishment of a revolving fund to cover the charges deriving from these
interest-free loans;85
- the renegotiation of loans and other financing in place on 1 Mar. 2020 and required by agricultural enterprises to meet needs related to the management and/or improvement of production facilities. Renegotiation operations must lead to an
improvement in the applicable conditions86 and are exempt from any taxes and charges, inc. administrative charges, to be borne by the enterprise; and
the extension of the facilities under the
84 The municipalities of: (a) Bertonico, (b) Casalpusterlengo, (c) Castelgerundo, (d) Castiglione D’Adda, (e) Codogno, (f) Fombio, (g) Maleo, (h) San Fiorano, (i) Somaglia, (l) Terranova dei Passerini, and (m) Vò.
85 The loans must have a term of no more than 15 years and must be used to extinguish bank debts outstanding as at 31 Jan. 2020 for companies that have suffered direct or indirect damage due to the Covid-19 emergency and are located in the
municipalities indicated in Annex 1 to the Prime Ministerial Decree of 1 Mar. 2020.
86 Specifically as concerns the amortisation schedule and the measurement of interest rates.
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revolving fund for business support and
research investment87 to investments made by
enterprises in the poultry sector.88
Emergency funds for the
entertainment, cinema and
audiovisual sectors
Art. 89 of Cura Italia Decree
Companies operating
in the entertainment,
cinema and audiovisual
sectors
Two funds are to be established for
emergencies in the entertainment, cinema
and audiovisual sectors,89 to support these
sectors following the restrictive measures taken
to cope with Covid-19 health emergency.
N/A
The operational procedures and the methods of
allocation of resources to eligible companies will
be set out by decree of the Ministry of Cultural
Heritage and Activities and Tourism, which is to
be adopted by 16 Apr. 2020.
Budget increase for the
Aviation Sector Solidarity
Fund90
Art. 94 of Cura Italia Decree
Companies operating
in air transport and
airports
Two funds are to be established for
emergencies in the entertainment, cinema and
audiovisual sectors,91 to support these sectors
following the restrictive measures taken to
cope with Covid-19 health emergency.
The benefits under para. 2 of this article are effective from 17 Mar. to 31 Dec.
The fund’s operational structure is unchanged; thus, the existing guidelines apply.
A special agreement must be entered into, with regard to the benefits under para. 2, at the governmental level involving the Ministry of Labour and Social Policies, the Ministry of Infrastructure and Transport, the Ministry of Economic Development and the region
87 The fund in question was set up in accordance with Art. 1, para. 354, of Law No. 311 of 30 Dec. 2004, under the separate management of CDP. The fund’s purpose is to grant subsidised loans – in the form of advances, repayable under a
multi-year repayment plan – to companies that are also members of special bodies, inc. cooperatives, that have been set up or promoted by business associations and chambers of commerce, industry, crafts and agriculture. CDP has provided
additional resources on top of the fund’s initial endowment.
88 The article specifies that this extension is capped at EUR 100 m for 2020.
89 These funds are envisaged in the Ministry of Cultural Heritage and Activities and Tourism’s budget, with an endowment of EUR 130 m for 2020.
90 This fund was established under Art. 1-ter, para. 1, of Legislative Decree. No. 249 of 5 Oct. 2004, with the main purpose of encouraging the change/renewal/update of professional skills and implementing active policies to support the
income and employment of workers in the aviation sector.
91 These funds are envisaged in the Ministry of Cultural Heritage and Activities and Tourism’s budget, with an endowment of EUR 130 m for 2020.
Measure
Regulatory References
Addressees Details Expiry Operational Guidelines
concerned.
Tax measures to support the liquidity of families and businesses
Measures Regulatory References
Beneficiaries Amount/Term Operational Guidelines Notes
Tax credit for 2020 for sanitation of offices, equipment and safety devices
Art. 64 of Cura Italia Decree and Art. 30 of Liquidity Decree
Companies, sole entrepreneurs and professionals
The Liquidity Decree extends the tax credit for sanitation of offices and equipment introduced by the Cura Italia Decree to expenses incurred in 2020 for:
• personal protective equipment (e.g., surgical masks, Ffp2 and Ffp3, gloves, protective visors and protective goggles, protective suits and shoes, hand cleaners, and disinfectants); and
• other safety devices designed to protect workers from accidental exposure to biological agents or to ensure interpersonal safety distances (e.g., barriers and protective panels).
Amount: 50% of the expenses – up to a maximum of EUR 20 k for each taxpayer.
Expenses must be properly documented.
• The application procedure will be regulated by a ministerial decree to be issued within 30 days from the entry into force of the Cura Italia Decree.
• EUR 50 m is the overall amount available (after the Liquidity Decree, the overall available resources remain unchanged).
Tax credit for 2020 for shops
Art. 65 of Cura Italia Decree
Companies and sole entrepreneurs who run their business from properties under the cadastral category C1 (shops)
Amount: 60% of the rent for Mar. • The credit can be offset exclusively against taxes due.
• The credit is not subject to income and regional tax.
• The credit does not limit the deduction of interest expense.
The tax credit is not available to taxpayers that provide the essential services listed under annexes 1 and 2 of the PMD 11 March (e.g., pharmacies, para-pharmacies and grocery shops).
Tax incentives for donations in cash and in kind
Art. 66 of Cura Italia Decree
Companies, natural persons and non-commercial entities
(A) Donations in cash and in kind made by natural persons and non-commercial entities are 30% deductible from income tax, up to a maximum of EUR 30 k.
(B) Donations in cash and in kind made by owners of business income are fully deductible for corporate and regional tax purposes.
Donations are deductible for the regional tax purposes in the financial year they are made.
The tax incentives apply to donations (in cash or in kind) to the state, regions, local governments, public bodies, private foundations, including civilly recognized religious entities, to help combat the Covid-19 pandemic.
Measures Regulatory References
Beneficiaries Amount/Term Operational Guidelines Notes
For subjects referred to under (B):
• donations in kind do not trigger any taxable proceeds/capital gains;
• donations in kind are not subject to gift tax.
Extension of 16 Mar. deadline for tax payments
Art. 60 of Cura Italia Decree and Art. 21 of Liquidity Decree
All taxpayers The Liquidity Decree extends the 20 Mar. extension to the deadline under the Cura Italia Decree to 16 Apr.
Penalties and interest do not apply. The extension applies to all payments due to public administrations, inc. social security contributions and compulsory insurance premiums.
Time-limits relating to the “pre-completed” tax return 2020
Art. 61-bis of Cura Italia Decree
Taxpayers entitled to submit their tax return based on the Modello 730
• The entrance into force of art. 16-bis of Decree No. 124/2019 (allowing certain categories of taxpayers to submit their tax return based on the Modello 730) is brought forward to 1 January 2020 (instead of 1 January 2021).
• The Revenue Agency makes available from 1 Jan. 2021 the data concerning the withholding tax certificates issued by the withholding agents.
For FY 2020, the deadline of 30 Apr. by which the Revenue Agency makes available the so-called “pre-completed” Modello 730 is extended to 5 May.
Extension of time limits for tax compliance
Art. 62, paras. 1 and 6 of Cura Italia Decree
Taxpayers whose tax domicile, registered office or place of management is in Italy
• Time limits expiring between 8 Mar. and 31 May are extended to 30 Jun.
• The deadlines for filing “pre-completed” tax returns still apply (see art. 61-bis of Cura Italia Decree).
Penalties do not apply.
The suspension does not apply to tax payments or withholding taxes.
Extension of deadline for payment of VAT,
Art. 61 of Cura Italia
• Taxpayers in the tourism sector (e.g.,
• Time limits for payment of withholding taxes and contributions expiring within 30 Apr.
• Payment must be made in a lump sum by 31 May or in up to five
The extension applies to:
• withholding taxes on
Measures Regulatory References
Beneficiaries Amount/Term Operational Guidelines Notes
withholding taxes and contributions for taxpayers in the most affected industries
Decree travel agencies and tour operators) whose tax domicile, registered office or place of management is in Italy
• Taxpayers in the fields of sports, arts and culture, transport, restaurants, education and assistance, management of fairs and events, etc.
• For taxpayers in the tourism sector operating in the “red zone” under Annex 1 of the DPCM of 1 March 2020, the suspension starts from 21 Feb. 2020 (pursuant to art. 1, par. 3, of the Decree of 24 February 2020).deferred to 31 May; time limits expiring within 31 May deferred to 30 Jun for sports associations and clubs.
monthly instalments (the first on 31 May); 30 Jun. for payment of withholding taxes and contributions by sports associations and clubs.
• Taxpayers who benefitted from the suspension of deductions at source pursuant to art. 1, par. 3, of the Decree of 24 February 2020 (or their withholding agents), shall pay the related withholding taxes within the same time-limits.
• Penalties and interest do not apply.
employment income and income assimilated to that of employees;
• compliance obligations, social security contributions and compulsory insurance premiums; and
• VAT due in Mar.
Extension of deadline for payment of VAT, withholding taxes and contributions for taxpayers with significant reductions to their turnover
Art. 18 of Liquidity Decree
(A) Companies, sole entrepreneurs and professionals with tax domicile, registered office or place of management in Italy and whose turnover in Mar. and/or Apr. 2020:
a) is at least 33% lower than their turnover in Mar. and/or Apr. 2019 (if their 2019 revenues did not exceed EUR 50 m); or
b) is at least 50%
For taxpayers under (A) and (B), payment deadlines expiring in Apr. and/or May 2020 are extended to 30 Jun. if related to:
(a) withholding taxes on employment income and income assimilated to that of employees and withholdings taxes related to regional and municipal surcharges;
(b) VAT; and
(c) social security contributions and compulsory insurance premiums.
For taxpayers under (C), the extension to 30 Jun. applies only to the payments listed under (a) and c) above.
For taxpayers under (D) that do not also fall under categories referred to under (A) or (B), the extension to 30 Jun. applies only to the payments listed under (b).
• Payment must be made in a lump sum by 30 Jun. or in up to five monthly instalments (starting from 30 Jun.).
• Penalties and interest do not apply.
Based on the tax authority’s Circular No. 9/E of 13 April 2020, for taxpayers under (A) who suffer from a qualifying reduction in their turnover only in Mar. or Apr. 2020, the extension to 30 Jun. applies:
• if the reduction occurs in Mar. 2020: only to deadlines expiring in Apr. 2020; or
• if the reduction occurs in Apr. 2020: only to deadlines expiring in May 2020.
The Revenue Agency, INPS, INAIL and the other social security bodies will cooperate to verify the requirements to benefit from the deadline extension.
Measures Regulatory References
Beneficiaries Amount/Term Operational Guidelines Notes
lower than their turnover in Mar. and/or Apr. 2019 (if their 2019 revenues exceeded EUR 50 m).
(B) Companies, sole entrepreneurs and professionals who started their business after 31 Mar. 2019; without requiring, in this case, a decrease in their turnover.
(C) Non-commercial entities, inc. third-sector entities and civilly recognised religious organisations, that carry out non-business activities in the general interest.
(D) Companies, sole entrepreneurs and professionals with tax domicile, registered office or place of management in the provinces of Brescia, Bergamo, Lodi, Piacenza and
Taxpayers who do not benefit from this deadline extension can still benefit from:
a) extension to 31 May of deadlines expiring in Apr. under Art. 8, para. 1 of Legislative Decree of 2 March 2020, no. 9 and Art. 61, paras. 1 and 2, of the Cura Italia Decree (taxpayers in the most affected industries); and
b) extension to 30 Jun. of deadlines expiring in Apr. and May under Art. 61, para. 5 of the Cura Italia Decree (sports associations and clubs).
Measures Regulatory References
Beneficiaries Amount/Term Operational Guidelines Notes
Cremona whose turnover in Mar. and/or Apr. 2020 is at least 33% lower than their turnover in Mar. and/or Apr. 2019 (regardless of their 2019 revenues).
Non-application of penalties or interest in the case of insufficient advance payments of personal/corporate income tax and regional tax
Art. 20 of Liquidity Decree
Taxpayers subject to personal/corporate income tax and regional tax.
• Penalties and interest do not apply if down payments for FY 2020 are equal at least to 80% of payments actually due on the basis of the tax return.
• The provision applies also to IVIE, IVAFE and flat-rate tax on rental rates (cedolare secca).
Extension of time limits for payment of VAT, withholding taxes and contributions for small businesses
Art. 62, paras. 2, 3 and 5 of Cura Italia Decree
Companies, sole entrepreneurs and professionals whose:
• turnover was lower than EUR 2 m in 2019; or
• tax domicile, registered office or place of management is in the provinces of Bergamo, Brescia, Cremona, Lodi or Piacenza (regardless of turnover amount)
• Time limits expiring between 8 Mar. and 31 Mar. are extended to 31 May.
• Extension only to VAT for taxpayers whose tax domicile, registered office or place of management is in the provinces of Bergamo, Brescia, Cremona, Lodi or Piacenza (regardless of turnover amount)
• Payment must be made in a lump sum by 31 May or in up to five monthly instalments (from the first on 31 May).
• Penalties and interest do not apply.
The extension applies to:
• withholding taxes on employment income and income assimilated to that of employees and withholdings taxes related to regional and municipal surcharges;
• social security contributions and for compulsory insurance premiums; and
• VAT.
Extension for withholding tax on
Art. 19 of Liquidity
Taxpayers whose tax domicile, registered
Taxpayers may opt to not have payments received between 17 Mar. and 31 May be subject
• To opt for this regime, taxpayers must notify the withholding agent.
This provision extends the duration of the regime under Art.
Measures Regulatory References
Beneficiaries Amount/Term Operational Guidelines Notes
self-employment income and commissions
Decree office or place of management is in Italy and:
• whose revenues did not exceed EUR 400 k in the 2019 FY; and
• who did not incur expenses for employees in the previous month.
to deduction at source. • Taxpayers who benefit from this
regime must directly to the withholding taxes to the tax authority that were not applied by the withholding agent, in a lump sum by 31 May or in up to five monthly instalments (the first on 31 May).
• Penalties and interest do not apply.
62, para. 7, of the Cura Italia Decree, which is contextually repealed.
Confirmation of extension of time limits for tax compliance obligations and tax payments for taxpayers in the former “red zones”
Art. 62, paras. 4 and 5 of Cura Italia Decree
Taxpayers whose tax domicile, registered office or place of management is in the former “red zones”
Extension of time limits expiring between 21 Feb. and 31 Mar. to 31 May is confirmed.
• Payment must be made in a lump sum by 31 May or in up to five monthly instalments (the first on 31 May).
• Penalties and interest do not apply.
The extension applies to:
• tax obligations, inc. those deriving from payment orders and assessment notices; and
• deduction at source on employment income and income assimilated to that of employees and on remuneration paid by the state.
Suspension of payments to the agent for collection
Art. 68 of Cura Italia Decree
All taxpayers The terms of payments falling due in the period from 8 Mar. 2020 to 31 May 2020 are suspended.
Payments are made:
• in a lump sum by 30 June 2020 for amounts due on the basis of (i) payment orders issued by collection agents, (ii) executive assessment notices issued by the Revenue Agency (iii) executive assessment notices issued by the INPS and (iv) executive assessment notices issued by the Customs and Monopolies Agency;
• in a lump sum by 31 May 2020 for (i) instalments due on the basis of
Based on Circular letter no. 5/E of 20 March 2020, in respect to sums due on the basis of executive assessment notices, the suspension applies only if the original deadline for the payment has already expired and sums are due to the collection agent based on an instalment plan.
Measures Regulatory References
Beneficiaries Amount/Term Operational Guidelines Notes
certain special settlements concerning payment orders issued by the collection agent and (ii) instalments due to the collection agent by certain debtors who suffer from serious economic difficulties.
For taxpayers who are resident or operate in areas particularly affected by the COVID-19 emergency (listed in Annex 1 of the Ministerial Decree of 1 March 2020) the suspension starts from 21 February 2020.
Mention for taxpayers who fulfil their obligations
Art. 71 of Cura Italia Decree
All taxpayers Mention on the MEF’s website. The “mention” is awarded to taxpayers that fulfil their tax payment obligations irrespective of one or more of the extensions under the decree.
The measure will be implemented by the MEF through a ministerial decree.
The Revenue Agency issues a certificate of the “mention” that can be used by taxpayers for commercial and advertising purposes.
Bonus for
employees
Art. 63 of Cura Italia Decree
Employees whose 2019 employment income did not exceed EUR 40k
Amount: EUR 100 for Mar. The amount is determined based on the days the employee effectively spent at his/her workplace in Mar., on a pro-rata basis.
The bonus is automatically paid by the employer, which can then offset the amount against taxes due.
The credit is not subject to income tax in the hands of the employee.
Tax credit for 2020
for advertising
investments
Art. 98, para. 1 of Cura Italia Decree
Companies, sole entrepreneurs, professionals and non-commercial entities
Amount: 30% of the value of 2020 advertising investment (instead of 75% of “incremental” investment under the ordinary regime under Art. 57-bis of Law Decree No. 50 of 24 April 2017).
• The credit can be offset exclusively against taxes due.
• The credit cannot be cumulated with any other tax benefits granted for the same expenses.
• Expenses must be certified by statutory auditors.
• The credit is granted for investments in advertising campaigns carried out in the daily and periodical press (inc. online newspapers) and on local television and radio stations. The value of the investments must be at least 1% higher than
Measures Regulatory References
Beneficiaries Amount/Term Operational Guidelines Notes
• Taxpayers who want to benefit from the credit must file a communication between 1 Sep. and 30 Sep. (communications already filed between 1 Mar. and 31 Mar. under the ordinary regime remain valid).
that for last year.
• The implementing regulations are under Prime Ministerial Decree No. 90 of 16 May 2018 (insofar as it is compatible with the new regulations – see Art. 3, which lists the expenses that can benefit from the tax credit).
• The credit will be granted to taxpayers in accordance with the EU regulations on “de minimis” State aid.
• The credit will be granted to taxpayers based on the overall available resources of the Fund for Pluralism and Innovation, which the prime minister will determine by 30 Sep.
Donation of medicines for compassionate use
Art. 27 of Liquidity Decree
Companies and sole entrepreneurs
Donation of medicines for compassionate use is subject to the following favorable regime:
• for VAT purposes, the presumption of sale under Art. 1 of Presidential Decree No. 441/1997 does not apply; and
• for income tax purposes, the donation does not trigger taxable proceeds in the hands of the taxpayer.
The regime applies to the medicines listed in the Ministry of Health Decree of 7 Sept. 2017, published in Official Journal No. 256 of 2 Nov. 2017, that are authorised by the competent ethics committee and donated to any of the subjects listed in Art. 3 of the same decree.
Extension of deadlines for electronic delivery and submission of withholding tax certificates (Certificazione
Art. 22 of Liquidity Decree
Withholding agents • Deadline for the delivery to the interested parties of the certificates on employment and self-employment income is extended from 16 Mar. to 16 Apr. 2020.
• Penalties for failure to submit the certificates to the tax authority by 31 Mar. do not apply if they are electronically submitted by 30 Apr.
Art. 1, para. 3, of Legislative Decree No. 9 of 2 Mar. 2020 extends the deadline for the submission of the certificates to the tax authority from 16 to 31 Mar. 2020.
Measures Regulatory References
Beneficiaries Amount/Term Operational Guidelines Notes
Unica 2020) 2020.
Extension of the validity of certificates required by Art. 17-bis, para. 5 of Legislative Decree No. 241/1997
Art. 23 of Liquidity Decree
Contractors and subcontractors entitled not to apply the special regime under Art. 17-bis of Legislative Decree No. 241/1997.
The validity of the certificates related to the requirements for the non-application of the regime, issued by the tax authority by 29 Feb. 2020, is extended to 30 Jun. 2020 (to avoid taxpayers accessing the tax authority’s offices).
Suspension of time limits related to the special regime for first-time home buyers
Art. 24 of Liquidity Decree
Taxpayers who benefit from the special regime for first-time home buyers.
The following time limits are suspended from 23 Feb. to 31 Dec. 2020:
• the 18-month time limit that starts running from the purchase of the first home, within which time the taxpayer must transfer residence to the municipality where the home is located (para. 1, point a), of note II-bis set out in Art. 1 of the Tariff, Part One, attached to DPR No. 131/1986);
• the one-year time limit within which the taxpayer must purchase another property to be used as his/her first home following the sale of the original first home in the five years following purchase (para. 4 of note II-bis mentioned above);
• the one-year time limit within which the taxpayer must resell the first home if it purchases a new property (under the regime) to be used as the first home (para. 4-bis of note II-bis mentioned above); and
• the one-year time limit that runs from the sale of the first home within which time the taxpayer must buy a new property to be used as the first home to obtain a tax credit for the amount of the registration tax and VAT paid on the previous purchase (Art. 7
Measures Regulatory References
Beneficiaries Amount/Term Operational Guidelines Notes
of Law No. 448/1998).
Measures regarding delays and non-fulfilment of contractual obligations due to measures to contain the virus, advance payments for public contracts and administrative procedures
Measure
Regulatory References
Beneficiaries
Amount/Term Operational Guidelines
Notes
Advance payments under the Public Contracts Code extended to urgent works
Art. 91, para. 2 of Cura Italia Decree
Companies that are parties to public contracts for works, services and supply
Amount: 20% of the contract value.
• Requests must be submitted to the contracting authority.
• All the necessary steps for the release of the bank guarantee/insurance surety required by law must be completed to receive advance payment.
Advance payments are made within 15 days from the beginning of the works.
Suspension of the time limits on administrative procedures
Art. 103, para. 1 of Cura Italia Decree and Art. 37 of the Liquidity Decree
Companies in procedures underway on 23 Feb. or started after that date
Art. 37 of the Liquidity Decree extends the suspension of the time limits under the Cura Italia Decree to 15 Apr.
Term: 23 Feb.–15 Apr.
• Consider the suspension in business planning.
• Consider the suspension’s impact on existing contracts.
• Submit a reasoned request to the competent authority for expeditious conclusion of a procedure due to urgency.
The suspension applies to:
• procedures initiated at the request of a party or ex officio
• procedures to be concluded by tacit assent/implicit rejection; and
• procedures managed by public administrations in the strict sense or parties considered equivalent to those.
Extension of validity of expiring certificates, permits, concessions, authorisations/licences
Art. 103, para. 2 of Cura Italia Decree, as emended by the pertaining converting
Companies with certifications, permits, concessions, authorisations/licences
Term: until 90 days after 31 Jul. (the date the Cabinet declared, on 31 Jan., the state of
Consider the extension in planning business activities.
No exceptions apply.
Measure
Regulatory References
Beneficiaries
Amount/Term Operational Guidelines
Notes
and other permissions
Under the converting law of Cura Italia Decree, such provisions also apply with regard to: (i) SCIAs; (ii) fitness-for-use SCIAs; (iii) environmental and landscape authorisations, however denominated; and (iv) withdrawal of granted building titles, however denominated, until the end of the state of emergency is declared.
law. and other permissions that expire between 31 Jan. and 31 Jul92.
emergency will end) 93
Provisions concerning
delays in the
performance of
contracts or breach of
contract due to the
implementation of
Covid-19 containment
Art. 91, para. 1, of Cura Italia Decree
Companies Compliance with the Covid-19 containment measures might exclude liability for delays/breach of contract.
Keep documentation proving implementation of Covid-19 containment measures.
Applicability requires a case-by-case assessment.
92 Cura Italia Decree had originally provided the applicability of such provision to certificates, permits, licenses and permissions, however denominated, expiring between 31 Jan. and 15 Apr.
93 Cura Italia Decree had originally extended such term until 15 Jun.
Measure
Regulatory References
Beneficiaries
Amount/Term Operational Guidelines
Notes
measures
Suspension of enforcement of eviction orders on tenants of residential and non-residential property
Art. 103, para. 6, of Cura Italia Decree
Companies enforcing/subject to eviction orders
Term: until 30 Jun.
Analysis of the applicable remedies in contractual relationships and of the measures regarding debt securities (titoli di credito)
Area of responsibility Critical issues Guidelines
Contractual relationships with suppliers and clients.
Total or partial non-performance.
• Assess suspending performance due to temporary impossibility to fulfil contractual obligations.
• Assess negotiating a reduction to the consideration to restore the economic-financial balance of the contract;
• Asses terminating the contract (if the subject matter is such that recipient of the service is unwilling to reduce the consideration).
• Assess whether civil-law principles of exemption of liability apply (i.e., when a contract cannot be performed for reasons beyond the obligor’s control, e.g., a force majeure event).
• Assess terminating the contract on the ground that performance has become excessively burdensome (hardship clause).
• Terminate the contract on the ground that its underlying assumptions no longer exist for either party.
Evaluate the appropriateness of termination on a case-by-case base, taking due account of the extent of the financial impact on the business. The suitability of the abovementioned remedies must be assessed on a case-by-case basis, considering the peculiarities of the contractual relationship and the impact of the emergency on the financial balance between the parties. Uncertainty about the duration of the emergency and further containment measures makes it even more difficult to identify (once and for all) the specific remedy applicable in the case of a serious but temporary concentrated financial imbalance between the parties under the contract. However, the debtor’s decision to ask the creditor for a temporary suspension of or reduction to payments, if grounded on the serious impact of the emergency on the debtor’s company, does not appear to be per se contrary to good faith and could thus, in principle, be justified. This holds true especially if the creditor reserves its right (under the temporary arrangement) to review the terms of the arrangement once the worst phase of the emergency ends and does not entail any waiver of the creditor’s rights under the contract.
Measure Regulatory References
Beneficiaries Term Notes
Suspension of deadlines and time limits regarding debt securities (titoli di credito)
Art. 11 of Law Decree No. 23/2020
Creditors, debtors and guarantors of promissory notes (vaglia cambiari or cambiali) and of all other debt securities (titoli di credito) and similar enforceable instruments (atto avente efficacia esecutiva)
Term: 9 Mar.–30 Apr. 2020
• All deadlines and time limits expiring or running between 9 Mar.–30 Apr. 2020 regarding debt securities and similar enforceable instruments are suspended (inc. payment deadlines and protest deadlines [levata del protesto] and equivalent claims).
• Bank and postal cheques are still payable at the creditor’s request. However, if the debtor’s account has a shortage of funds, the protest cannot be raised until the suspension expires. The deadline under Art. 8, para. 1, Law No. 386/1990 is suspended and the punishment procedure cannot be initiated. The deadlines under: (a) Art. 8-bis of Law No. 386/1990; and (b) Arts. 9 and 9-bis of Law No. 386/1990 are also suspended. A debtor/guarantor’s non-performance can therefore only be ascertained at the end of the suspension period.
• During the same period (9 Mar.–30 Apr.), public officials must not notify the Chambers of Commerce about protests raised between 9 Mar.–9 Apr.; those that have already been published in the “Digital protest register” (Registro informatico dei protesti) will be automatically cancelled.
Measures regarding transport
Measure
Regulatory references Addressees Details Operational Guidelines
Notes
Circulation ban
(para. 1)
Para. 1 of Ministerial Decree
No. 115 of 13 March
(Ministry of Transport)
Road carriers The schedule for the ban on
circulation of vehicles with a
maximum authorised mass of
at least 7.5 tonnes (under Art.
2 of Ministerial Decree No.
578 of 12 Dec. 2019) is
suspended until further notice
for vehicles engaged in the
international carriage of
goods.
Export credit measures
Art. 55 of Cura Italia Decree Shipyards and companies that
benefit from SACE export
credit
SACE S.p.A. is granted a State
guarantee of up to EUR 2.6
bn, for operations in the
cruise sector resolved on by
SACE by the date of entry
into force of the decree (17
Mar.).
The State guarantee is issued,
taking into account the
allocation of the fund referred
to in Art. 6, para. 9-bis of Law
Decree No. 269 of 30 Sept.
2003, converted with
amendments into Law No.
326 of 24 Nov. 2003, and
within the limits of available
resources, by a decree of the
Minister of Economy and
Finance at the request of
SACE, following consultation
with the committee referred
to in Art. 3 of the prime
ministerial decree of 19 Nov.
2014, which was enacted at
the proposal of the Minister
of Economy and Finance in
This measure will help unblock also
the five ship orders for the
Norwegian Cruise Line Holdings
group (two ships for NCL, two for
Oceania Cruises and one for Regent
Seven Seas Cruises), which are
waiting only to be formalised by
SACE, which will occur by 15 Apr.
at the latest.
Measure
Regulatory references Addressees Details Operational Guidelines
Notes
consultation with the Minister
of Economic Development.
Urgent air transport measures
Art. 79 of Cura Italia Decree Airline companies (carriage of
passengers).
Compensatory measures are
provided to mitigate the
damage caused by the
epidemic.
Authorisation has been
granted for the establishment
of a new company wholly
owned by the Ministry of
Economy and Finance or
controlled by a state-owned
company (inc. indirectly) to
take over Alitalia – Società
Aerea Italiana S.p.A. in a.s.
and Alitalia Cityliner S.p.A. in
a.s.
One or more implementing
decrees will be needed –
which will constitute the
memorandum and articles of
association of the newco.
The compensatory measures under
para. 2 are subject to pean
Commission authorisation (under
Art. 108(3) of the Treaty on the
Functioning of the European
Union.
The Covid-19 epidemic is formally
recognised as a natural disaster and
as an exceptional occurrence under
Art. 107(2)(b) of the Treaty on the
Functioning of the European
Union.
Carriage of goods by road and public carriage of passengers
Art. 92 para. 1, of Cura Italia
Decree
Maritime carriers.
No anchorage fees due to the
harbour authorities between
the date of entry into force of
the decree (17 Mar.) and 30
Apr.
EUR 13.6 m has been allocated to
indemnify the harbour authorities
against the lost income this year.
Carriage of goods by road and public carriage of passengers
Art92 para. 2, of Cura Italia
Decree
Terminal operators,
concession holders of space
within the port, stevedoring
companies
Payment is deferred for the
concession fees under Arts.
16, 17 and 18 of Law No. 84
of 28 Jan. 1994 (legislation on
Italian ports) that are due by
terminal operators, concession
holders and stevedoring
companies between the date
The fees must be paid in full
by 31 Dec.
No interest applicable to the
deferred payments, and repayment
can be made in instalments (each
harbour authority will have its own
procedure for this).
Measure
Regulatory references Addressees Details Operational Guidelines
Notes
of entry into force of the
decree (17 Mar.) and 31 Jul.
Carriage of goods by road and public carriage of passengers
Art. 92, para. 3, of Cura Italia
Decree
Importers, shippers and
customs brokers
Payment is deferred for 30
days for customs duties due
between the date of entry into
force of the decree (17 Mar.)
and 30 Apr. – no interest
applicable.
Carriage of goods by road and public carriage of passengers
Art. 92, para. 4, of Cura Italia
Decree
Road carriers. Use for road transport of
vehicles due for inspection (by
the competent authority) by
31 Jul. is authorised until 31
Oct.
Inspection and testing
guidelines are set out under
domestic legislation on the
safety and good management
of vehicles.
Urgent measures to
contain the spread
of Covid-19
Art. 1, points a and d, of
PMD 22 March
Maritime and air transport
operators.
The government (under Art.
1, point a) has suspended all
industrial and business
activities except for those
listed in Annex 1 to the
decree. The annex includes
carriage of goods by road, sea
and air (ATECO codes 49, 50
and 51).
Under Art. 1, point d,
activities needed to ensure
supply chain continuity for the
activities referred to in Annex
1 are exempt from the
suspension, provided
companies notify the
prefecture of the province
The notification to the
prefecture must indicate the
companies and/or public
administrations that are
beneficiaries of
products/services needed for
activities permitted under Art.
1, point a.
Each prefecture will likely issue
individual template notification
forms (see the Prefecture of
Brescia’s press release of 24 Mar.).
According to indications from
Confindustria (neither the
government nor other authorities
have issued official clarification yet),
companies that carry out activities
needed for supply chain continuity
may also continue to serve foreign
customers that:
- operate in any of the sectors
in Annex 1;
- provide public utilities and/or
essential services; or
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where the activity is carried
out.
Companies may carry out
exempted activities (barring a
subsequent suspension
measure issued by the local
prefecture) once they notify
the local prefecture. The
prefecture may suspend
exempted activities if it
considers the conditions
under Art. 1, point d, unmet.
- produce/transport/market
medicines (and the like) or
agricultural/food products.
In these cases, companies must first
notify the competent prefecture of
the foreign customer’s details and
activity.
Urgent measures to
contain the spread
of Covid-19
Art. 1, point o), of LD 25
March
Transport operators. The competent national and
regional authorities may limit,
reduce, suspend or cancel: air,
automotive, railroad and
maritime (both tramp and
liner) carriage of people and
goods; and local public
transport.
Chamber of
commerce
certification of
declarations by
companies on the
existence of a force
majeure event
caused by Covid-19
Art. 1, para. 1, of the
Ministerial Circular of 25
March (Ministry of Economic
Development)
• Chambers of commerce
• Trade associations
At the request of companies,
chambers of commerce may
issue statements in English
confirming the existence of a
state of emergency in Italy due
to Covid-19.
These statements are to serve
as certification of a company’s
declaration that, due to the
restrictions imposed by the
authorities and to the state of
The system of reorganisation of
chambers of commerce (under Law
580/1993, as subsequently
amended and supplemented) does
not confer certification power on
chambers of commerce as to the
truthfulness of declarations
received.
A chamber of commerce official,
although widely recognised as a
public official (see, among many
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emergency in place, it was
unable to duly fulfil its
contractual obligations due to
unforeseeable reasons beyond
its control.
others, Italian Supreme Court
Decision No. 1205 of 6 Oct. 2014),
may certify only what has already
been self-certified by an
entrepreneur. Consequently, the
usefulness of the certification in
question in the event of a dispute
could be rather limited.
Entry into Italy
Art. 1 of Inter-ministerial
Ordinance 28 March (Ministry
of Transport – Ministry of
Health)
Art. 1 of Inter-ministerial
Decree No. 145 of 3 April
(Ministry of Transport –
Ministry of Health)
Art. 1 of PMD 10 April
Art. 4 of PMD 26 April
• Transport operators
• Passengers
• Cross-border workers
Anyone wishing to enter
national territory by air, sea,
lake, rail or land transport is
required to comply with the
obligations set out in the
Inter-ministerial Ordinance of
28 March.
All passengers entering by air,
sea, rail or land transport
must, when boarding, provide
the carrier a declaration
indicating:
• the reason for the journey;
• the full address of
residence or domicile in
Italy where they will
undergo the compulsory
period of health
surveillance and self-
isolation;
• the means of transport
Provisions set forth in PMD
26 April 2020 does not apply
to:
• crew members of means of
transport and ‘travelling
personnel’ of transport
companies with registered
office in Italy;
• personnel involved in the
carriage of goods;
• healthcare workers returning
to Italy for proven work-
related reasons; or
• cross-border workers
returning to Italy for a stay
of less than 72 hours
motivated by proven work-
related reasons and the
consequent return to their
residence or domicile.
Carriers and shipowners must,
In exceptional cases, the Ministry of
Infrastructure and Transport may
issue one or more decrees with
temporary provisions that derogate
from the current provisions. Any
such decrees will follow a proposal
from the Ministry of Foreign
Affairs and International
Cooperation and be in agreement
with the Ministry of Health. A case
is considered exceptional only if it
entails protecting Italian citizens
abroad or fulfilling
European/international obligations,
inc. those under Directive (EU)
2015/637 of 20 April 2015 (on
coordination and cooperation
measures to facilitate consular
protection of unrepresented EU
citizens in third countries).
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they will use to reach the
above address; and
• a phone number they can
be reached at for the entire
period of health
surveillance and self-
isolation (14 days from the
date of entry).
All people (whether or not
showing symptoms) who enter
Italy using the above means
must immediately notify the
prevention dept at the local
health authority of their entry;
they will be subject to a 14-day
period of health surveillance
and self-isolation at the
address indicated at boarding
in accordance with para. 1,
point b). Anyone who starts to
show Covid-19 symptoms
must promptly call the local
health authority’s dedicated
hotline.
The local health authority will
immediately inform the
Regional Civil Protection Dept
of anyone who, upon
disembarking in Italy, is unable
to reach the address indicated
before allowing passengers to
board, acquire and verify the
required documentation and
measure each passenger’s
body temperature. Boarding is
prohibited to those with a
fever and to those who submit
incomplete documentation.
Carriers and shipowners must
take adequate organisational
measures to ensure that
passengers are at least one
metre (three feet) far from
each other for the whole
journey.
Air carriers must provide
passengers personal protective
equipment when boarding.
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at departure (i.e., the place
where they are to undergo
health surveillance and self-
isolation). The Regional Civil
Protection Dept, in
coordination with the National
Civil Protection Dept, will
then determine the procedures
and the place where the period
of health surveillance and self-
isolation is to be carried out,
with the related costs to be
borne exclusively by the
person concerned. Likewise,
anyone who starts to show
Covid-19 symptoms must
promptly call the local health
authority’s dedicated hotline.
People entering Italy by private
means are also subject to the
above notification and self-
isolation obligations – the only
difference is that they must, in
the notification, indicate their
address in Italy. The obligation
to call the hotline in the case
of Covid-19 symptoms also
applies.
Individuals who are unable to
reach their indicated address
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(i.e., where they will undergo
the health surveillance and
self-isolation) must notify the
local health authority. The
authority will immediately
inform the Regional Civil
Protection Dept, which, in
coordination with the
National Civil Protection
Dept, will determine the
procedures and the place
where the period of health
surveillance and self-isolation
is to be carried out, with the
related costs to be borne
exclusively by the person
concerned.
Short stays and
transit
Art. 5 of PMD 26 April • Carriers (carriage of
passengers)
• Passengers
• Travellers (by private means
of transport)
People who enter Italy by air,
sea, rail or land transport
exclusively for proven work-
related reasons and for a max.
of 72 hours are not required
to self-isolate (in derogation
from Art. 4 of PMD 26 April).
But when boarding, they must
provide the carrier a
declaration indicating:
• the reason for the journey;
• the full address of
residence, domicile or
place of stay in Italy;
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• the means of transport
they will use to reach the
above address; and
• a phone number they can
be reached at.
By providing the above
declaration, declarants
undertake to:
a) leave Italy immediately
after their stay concludes
or, failing that, undergo
the compulsory 14-day
period of health
surveillance and self-
isolation at the address
indicated in their
declaration; and
b) notify the prevention dept
at the local health
authority immediately if
they begin to show Covid-
19 symptoms, and self-
isolate for 14 days.
People entering Italy by private
means of transport for proven
work-related reasons and for a
max. of 72 hours are also not
required to self-isolate (in
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derogation from the above
provisions). But they must
immediately notify the
prevention dept at the local
health authority at their point
of entry and provide a
declaration indicating:
• the proven work-related
needs and the length of
stay in Italy;
• the full address of their
residence, domicile or
place of stay in Italy;
• the means of transport
they will use to reach the
above address; and
• a phone number they can
be reached at.
Those providing this
declaration undertake the
obligations under points a) and
b) above.
In the case of air transport, the
above obligations – except the
obligation to self-isolate for
14-days if showing Covid-19
symptoms – do not apply to
transit passengers whose final
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destination is not Italy.
Transit passengers, regardless
of their final destination, must:
a) provide the carrier, when
boarding, a declaration
indicating:
1. the reasons for the
journey and the length of
their stay in Italy;
2. the country of final
destination, and the
ticket number and flight
number for the final
destination; and
3. a phone number they can
be reached at; and
b) refrain from leaving the
areas designated for them in
the terminals.
In the case of land transport, people are allowed to transit through Italy by private means also to reach another country (be it EU or non-EU), but they must immediately notify the prevention dept at the local health authority at their point of entry and, if they subsequently begin to show Covid-19 symptoms,
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promptly call the competent local health authority’s dedicated hotline. The max. stay in Italy is 24 hours, which can be extended by 12 hours for certain proven needs. Anyone staying longer than the max. allowed must fulfil the obligations under Art. 4 of PMD 26 April (i.e., they must immediately report their entry to the prevention dept at the local health authority and undergo a 14-day period of health surveillance and self-isolation).
Cruise ships and
foreign-flagged
ships
Art. 6 PMD 26 April 2020 • Cruise service operators
• Passengers
Cruise services run by Italian-
flagged passenger ships are
suspended as of 4 May.
For cruises still in progress, all
management companies,
shipowners and masters of
Italian passenger ships are
prohibited from taking new
passengers on board from 4
May to the end of the cruise.
Once all preventive health
measures ordered by the
competent authorities have
been carried out, all
management companies,
shipowners and masters of
Italian passenger ships
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engaged in cruise services
must disembark all passengers
at the last port of call (if they
have not already disembarked
at previous calls).
Passengers are subject to the
following obligations upon
disembarkation at Italian
ports:
a) Passengers whose
residence, domicile or
usual residence is in Italy
must immediately report
their entry to the
prevention dept at the
competent local health
authority and undergo a
14-day period of health
surveillance and self-
isolation at the indicated
residence, domicile or
usual residence. Anyone
who starts to show Covid-
19 symptoms must
promptly call the local
health authority’s
dedicated hotline.
b) Passengers of Italian
nationality who reside
abroad must immediately
report their entry and
destination address to the
prevention dept at the
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local health authority and
undergo a 14-day period
of health surveillance and
self-isolation at that
address; alternatively, they
may request to be
transferred to a foreign
destination immediately at
the shipowner’s expense.
The obligation to call the
local health authority’s
hotline in the case of
Covid-19 symptoms also
applies; and
c) Passengers of foreign
nationality who reside
abroad will be
immediately transferred to
the relevant foreign
destinations at the
shipowner’s expense.
The passengers referred to
under points a) and b) above
must reach their destination in
Italy exclusively by their
own/private means of
transport.
Save for as otherwise specified
by the competent health
authority, passengers who
have had close contact (within
the meaning set out by the
competent health authority)
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with a confirmed case of
Covid-19 on board their ship
will either be subject to health
surveillance and self-isolation
at the Italian address they
indicated at disembarkation or
be immediately transferred to
a foreign destination by a
protected, dedicated means of
transport at the shipowner’s
expense.
Entry into Italian ports, inc. for the purpose of idle berthing, is forbidden for management companies, shipowners and masters of foreign-flagged passenger ships engaged in cruise services that are expected to call at Italian ports.
Several aspects of Corporate law
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Rules relating to company shareholders’ meetings
Art. 106 of Cura Italia Decree
(the operating instructions, in addition to Art. 106 of Cura Italia Decree, derive from Maximum No. 187 of the Notarial Council of Milan)
Closed Companies
(companies that do not resort to risk capital under Art. 2325-bis of Italian Civil Code, i.e., companies other than those whose shares are traded on multilateral trading facilities or widely distributed among the public)
Meeting date: All companies (S.p.A., S.a.p.a., S.r.l. and cooperative and mutual insurance companies) may convene their annual shareholders’ meeting to approve the financial statements within 180 days from the end of the financial year, with no need to specify the reason for the delay (even in the absence of the requirement to draw up of the consolidated financial statements or special requirements relating to the company’s structure or purpose, under Art. 2364, para. 2, of the Italian Civil Code).
Convening and voting: The notices of call of S.p.A.s, S.a.p.A.s, S.r.l.s and cooperative and mutual insurance companies for ordinary and extraordinary shareholders’ meetings convened by 31 July 2020 may stipulate, even in derogation from the articles of association:
• electronic or postal voting; and
• participation by telecommunications (conference call/video link).
The latter method of participation may be offered as the exclusive way to attend the meeting if all attendees present can be identified (as always when attending via conference call or video link).
Chairperson and secretary: The chairperson and
the secretary or, as the case may be, notary, may
Shareholders’ meetings convened on or before 31 Jul.
(and after this date if the Covid-19 emergency is still ongoing)
“Closed” S.p.A.s, S.a.p.A.s, S.r.l.s and cooperative and mutual insurance companies, which by nature have a restricted shareholder base, may hold their annual general meetings as soon as the financial statements have been prepared by no later than 180 days from the end of the financial year (i.e., on or before 30 Jun.). In any case, any ordinary or extraordinary meetings convened on or before 31 Jul. may be:
• held exclusively by conference call or video-link only if all attendees can be identified and it is possible for them to exchange documents and take part to the discussions;
• combine the options indicated in the decree (i.e., providing for voting by post and participation by conference call and/or video link); or
• identify a place of convocation and therefore hold the physical meeting, but only if the place of convocation identified is such as to allow the participation of all the attendees concerned and guarantee the existence of the sanitary measures imposed due to the Covid-19 situation, e.g., Protocol 14 March. on the date of the meeting, the applicability of which depends on number of attendees.
• The notice of call must, even in the case of participation exclusively by means of telecommunications, indicate the place where the meeting is to be held – selected in accordance with Art. 2363 of the Italian Civil Code, in the
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attend remotely; more specifically:
• the chairperson, secretary and/or notary need not be present in the same place;
• it is sufficient that only the secretary is at the place of convocation; and
• the secretary can be the only person physically present, unless the chairperson appoints someone else to identify attendees and verify the votes, in which case that person must attend the meeting (this will probably the case for companies that resort to risk capital).
Written consultation: S.r.l.s are not required to
convene a shareholders’ meeting; they may resolve
on decisions by written consultation or express
written consent by post or email (regardless to the
subject of the decision)
municipality where the company has its registered office or in any other place stipulated in the articles of association – where the person taking the minutes will be physically present.
S.r.l.s may opt to not convene a meeting to approve
the financial statements and may pass all other
shareholder resolutions by written consultation or
voting by post or email (but the 180-day deadline for
approving the financial statements still applies)
In the case of meetings for which a notice of call has already been sent/published, certain aspects may need a case-by-case analysis.
Rules relating to the company shareholders’ meetings
Art. 106 of Cura Italia Decree
(the operating instructions, in addition to Art. 106
Listed companies
(listed companies and companies whose shares are traded on
For “open” companies (i.e., companies with listed shares or with shares that are widely distributed among the public) all the above provisions apply. In this regard, it should be noted that for companies with listed shares, voting by post and by electronic
Shareholders’ meetings convened on or before 31 Jul.
The above instructions apply mutatis mutandis to listed companies.
In addition, Consob, with Communication No. 3/2020 of 10 April 2020 entitled “COVID-19 - Decree Law No. 18 of 17 March 2020 - Communication on the
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of Cura Italia Decree, derive from Consob Communication No. 3/2020)
multilateral trading facilities or widely distributed among the public)
means is governed by Art. 127 TUF and Art. 140 et seq. of Issuers Regulation94. The other companies just mentioned will be able to rely on these rules mutatis mutandis
In addition, for ordinary and extraordinary shareholders’ meetings convened on or before 31 Jul., both listed companies and companies whose shares are traded on multilateral trading facilities or widely distributed among the public may:
• designate an “appointed representative” (under Art. 135-undecies TUF) – even in derogation from the articles of association.
It should be noted that the notice of call may provide that attendance at the shareholders’ meeting may take place exclusively through the appointed representative (who, in turn, may attend the meeting by conference call or video link if provided for in the notice of call). In this case, all proposals for resolutions on each agenda item must be published before the meeting, in sufficient time to allow shareholders to exercise their voting rights by proxy to the appointed representative95; and
• accept proxies and sub-delegations conferred
(and after this date if the Covid-19 emergency is still ongoing)
Shareholders’ Meetings of listed companies” (“Communication No. 3/2020”) sets out provisions and suggests the adoption of appropriate operational measures with regard to:
• participation methods and distance voting (see point 4);
• participation in the meeting exclusively through the appointed representative under Art. 135-undecies TUF (point 5);
• presentation at shareholders’ meetings of individual proposals for resolutions on agenda items under Art. 126-bis, para. 1, third sentence, TUF (point 6);
• conferment of proxies and sub-delegations to the company’s appointed representative under Art. 135-undecies TUF by a representative under Art. 135-novies TUF (point 7);
• right to ask questions before shareholders’ meetings under Art. 127-ter TUF (point 8);
• rules on the solicitation of voting proxies under Art. 136 et seq. of TUF and Art. 135 et seq. of Issuers Regulation (point 9); and
• entitlement to attend and vote at shareholders’
94 See Consob Communication No. 3/2020 concerning the need to guarantee the confidentiality of voting until the beginning of the ballot in the meeting and certain operational indications in this regard.
95 See Consob Communication No. 3/2020.
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by a representative under Art. 135-novies TUF to the company’s appointed representative.96
The rules relating to the following have not changed:
• requests for additions to the agenda and submission of new proposals for resolution;
• the right to ask questions before the shareholders’ meeting and the rules relating to the company’s appointed representative (except for Art. 135-undecies, para. 4, TUF); and
• the solicitation of voting proxies.
The provisions of the TUF and Issuers Regulation concerning the above aspects remain unaffected and – to avoid disputes about the right to attend shareholders’ meetings and/or obtain the required clarification – companies will need to adapt their practices.97
meetings under Art. 83-sexies of TUF (point 10).
Reduction of the
share capital for
Art. 6 of Liquidity Decree
Limited liability companies (S.p.A., S.a.p.A.,
• The measure provides that, on a temporary basis and as an exception to ordinary regulations, due to losses, some provisions
From 9 April 2020 (date of entry into force of
• The provision does not constitute a real novelty in the Italian legal framework. Indeed, as early as 2012, Art. 182-sexies of the bankruptcy law has
96 These proxies and sub-delegations may also be granted in derogation from Art. 135-undecies, para. 4, TUF and, therefore, without the need to fill in and sign the proxy templates, whose content is defined by Consob’s Issuers Regulation; but
they must contain voting instructions to be effective; see Consob Communication No. 3/2020.
97 See Consob Communication No. 3/2020
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losses S.r.l.) and cooperative companies
regarding the reduction of share capital do not apply. In particular:
- if the capital is reduced by more than one third as a result of losses, the administrative body (or, failing and if the conditions are met, the supervisory body) is still required to convene the shareholders’ meeting without delay to rule on the appropriate measures to take and to draft the report on the balance sheet (Arts. 2446, para. 1, and 2482-bis, paras. 1, 2 and 3 of the Italian Civil Code still apply and are not subject to any derogation); nevertheless, there is no obligation to reduce the share capital if the loss is not reduced to less than one third by the following financial year (the application of Art. 2447 and Art. 2482-ter of the Italian Civil Code is suspended);
- if the capital falls below the statutory minimum (EUR 50 k for S.p.A.s and S.a.p.A.s, EUR 10 k for S.r.l.s), there is no obligation to convene the shareholders’ meeting without delay to rule upon the reduction of capital and the consequent increase thereof not less than the minimum, or the transformation of the company (the application of Arts. 2447 and 2482-ter of the Italian Civil Code is suspended).
• The winding-up of limited liability companies and cooperative companies due to reduction or loss of share capital below the legal minimum is also suspended (as referred to in Arts. 2484, para. 1, point. 4, and 2545-duodecies, of the Italian Civil Code).
the Liquidity Decree) to 31 Dec. 2020 in relation to events that arise in the financial year ending 31 Dec. 2020
provided for the inapplicability of the provisions on the loss of share capital from the date a company files a request for: (i) a pre-bankruptcy arrangement with creditors (concordato preventivo) (also with reservation under Art. 161, para. 6, of the bankruptcy law; or (ii) an approval procedure for debt restructuring under Art. 182-bis of the bankruptcy law (also for the procedure under Art. 182-bis, para. 6 of the bankruptcy law).
• Art. 6 of the Liquidity Decree therefore temporarily extends the principle under Art. 182-sexies of the bankruptcy law to all limited liability companies, regardless of whether they undergo a debt restructuring procedure based on a pre-bankruptcy arrangement with creditors or debt restructuring agreement.
• Without prejudice to the foregoing, the provision does not entail any weakening of the duties imposed by law on directors of businesses in a state of crisis or insolvency. Therefore, regardless of the temporary suspension of the provisions regarding the loss of share capital, directors must promptly check whether the company – also due to the financial issues mentioned above – is in a state of crisis or insolvency. If so, they still have to start the appropriate procedures to resolve the crisis or insolvency.
• Because of the above and taking into account the state of uncertainty related to the current situation and to the decisions that will be taken by the competent authorities regarding the resumption of production activities, it seems appropriate that corporate bodies that did not start a restructuring process before the emergency take the following precautions:
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(i) verify whether the company can benefit from the government’s business support measures (inc. those under the Liquidity Decree) to deal with the Covid-19 emergency and, if so, implement all the necessary or appropriate actions for this purpose;
(ii) adopt a plan for monitoring the progress of the business and prompt handling of the situation that has arisen. To this end, directors need to: (a) quantify the company’s debt and its composition (esp. regarding the rank, privileged or unsecured, of creditors and indebtedness to the treasury and social security institutions), in order to verify its sustainability also in relation to the cash flows referred to in the following point; and (b) draw up an updated treasury plan that details the expected cash flow of the company within an appropriate time horizon, taking care to verify and periodically update this treasury plan; and
(iii) in the event of a crisis, including a prospective crisis, in light of the evaluations referred to in points i) and ii), manage – immediately and while pending the adoption, if necessary, of the initiatives referred to in the following point – the business, carrying out only acts of ordinary administration, in order to preserve business continuity and the value of the company’s goods and business assets, and refrain from actions that entail taking on new obligations; and promptly assess whether the crisis can be resolved through the measures currently available (inc. those under the Liquidity Decree). If not possible to, undertake a restructuring process using one of the options available under the bankruptcy law.
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Criteria for the drafting of the financial statements
Art. 7 of Liquidity Decree
Limited liability companies, cooperative and mutual insurance companies
In drafting the financial statements for the current
financial year, and for those closed by 23 February
2020 but not yet approved, companies are allowed
to evaluate the financial statement items on a
going concern basis if the business was fully
operational based on the last financial statements
closed before 23 February 2020 (i.e., the date of the
first measure to deal with the Covid-19 emergency).
However, companies are obliged to include an
explanation of this valuation method in the note
to the financial statements, also mentioning the
results of the previous financial statements.
Financial statements for the current financial year (if not yet approved) and financial statements for the year ended on 31 Dec. 2020.
• Companies are allowed, for balance sheet purposes, to consider the business a going concern on the basis of the situation existing before 23 Feb. 2020, thus removing – to the extent permitted – the effects of the Covid-19 emergency. For the purposes of drafting the financial statements as at 31 Dec. 2020 (and the financial statements as at 31 Dec. 2019 if not yet approved), it is possible to adopt a going concern perspective on condition that: (i) the business was fully operational based on the last financial statements closed before 23 Feb. 2020; and (ii) the use of this method is detailed, also mentioning the results of the previous financial year, in the note to the financial statements.
• The financial statements for 2019 that have not yet been approved must in any case include, in
accordance with Art. 2427, point 22-quater98, of the Italian Civil Code and accounting principle OIC
2999, information on the nature and effect of significant events occurring after the end of the financial year on the balance sheet and financial and economic standing.
• We nonetheless agree with the recommendation
98 Content of the note to the financial statements under Art. 2427 of the Italian Civil Code, No. 22-quater: “the nature and financial and economic effect of significant events occurring after the end of the financial year”.
99 OIC 29 – “Changes in accounting policies, changes in accounting estimates, correction of errors, extraordinary events and transactions, events occurring after the year-end”. OIC 29 regulates the accounting treatment and disclosures to be
made in the notes to the financial statements of events concerning: changes in accounting principles; changes in accounting estimates; correction of errors; extraordinary events and transactions; events occurring after the end of the financial
year.
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expressed by the first reviewers of the Liquidity
Decree100 to provide details concerning the ability to maintain business continuity in the note to the financial statements and to constantly monitor the guidelines in this regard issued by the institutions and main accounting associations.
Provisions relating to corporate financing
Art. 8 of Liquidity Decree
Limited liability companies (S.p.A., S.r.l., and S.a.p.A.)
The article suspends the mechanism of
subordination by operation of law101 of the
repayment of intercompany loans, i.e., those
granted to companies by shareholders (under Art.
2467 of the Italian Civil Code) or by those who
exercise direction and coordination (under Art.
2497-quinquies of the Italian Civil Code), with respect
to the satisfaction of other creditors.
9 Apr.–31 Dec. 2020
• The temporary suspension of the mechanism of subordination by operation of law does not seem in any case to allow shareholders, once financing has been granted and for at least the duration of the Covid-19 emergency, to request and obtain the repayment of the loan regardless of the assessment of the economic/financial state of the company: this, while not expressly infringing Arts. 2467 and 2497-quinquies of the Italian Civil Code, could assume importance from various points of view in relation to the directors’ liability if the financial situation worsens and the company becomes subject to bankruptcy proceedings.
• The suspension of the subordination mechanism of shareholders’ loans does not seem to exclude shareholders being able to agree, contractually, with third parties (e.g., lending banks) to subordinate loans granted by shareholders to
100 See the article published in the magazine Fisco e Tasse, issue of 10 April 2020 entitled: “Decreto Liquidità: disposizioni per la redazione dei bilanci in corso”, available in Italian here. See also the article published in the magazine Euroconference News.,
issue of 8 April 2020, entitled: “Modifiche per società, crisi d’impresa e bilanci con il Decreto Liquidità”, available in Italian here.
101 The mechanism operates when, following a discretionary assessment by the directors, it is considered that the loan was granted at a time when, also in consideration of the type of business, there is an excessive unbalance of debt compared
to net capital or there is a financial situation of the company in which a contribution would have been reasonable.
Measure
Regulatory References
Addresses
Details Term Operational Guidelines
loans granted by qualified third parties (e.g., in the case of non-disturbance clauses).
• Art. 182-quater, para. 3, of the bankruptcy law, which, under the conditions and to the extent provided therein, attribute to shareholders’ loans the rank of preferential receivables, remain unchanged.
Measures relating to debt restructuring and bankruptcy proceedings
Measure Regulatory reference Amount/Term Operational Guidelines Notes
Deferral of the entry into force of Italy’s Crisis and Insolvency Code
Art. 5 of Liquidity Decree Entry into force is now scheduled for 1 Sep. 2021.
In Art. 389 of Legislative Decree No. 14 of 12 January 2019, para. 1 is replaced by the following:
“This decree will enter into force on 1 September 2021, save for as otherwise provided under para. 2”.
The reasons for the deferral are:
• the code’s envisaged alert mechanism is ineffective in a time of general crisis;
• it is extremely difficult to restructure debt during an economic/investment crisis; and
• it is difficult to introduce a new legal instrument during a situation of economic distress.
Provisions on pre-bankruptcy arrangements with creditors (concordato preventivo) and debt restructuring agreements
Art. 9 of Liquidity Decree • A six-month extension is envisaged for deadlines that fall between 23 Feb. 2020–31 Dec. 2021 under approved pre-bankruptcy arrangements with creditors and debt restructuring agreements; this affects also the mechanism for terminating pre-bankruptcy arrangements under Art. 186 of the Italian Bankruptcy Law.
The rationale behind these measures is to avoid irreparably jeopardising pre-bankruptcy arrangements or debt restructuring agreements that had a real chance of success before the epidemic’s outbreak, with obvious repercussions on the possibility of saving businesses, even those of a significant size.
Measure Regulatory reference Amount/Term Operational Guidelines Notes
• Debtors may – before the date of a hearing to approve a pre-bankruptcy arrangement or a debt restructuring agreement – request to have up to 90 days to submit a new debt repayment plan and a new proposal for a pre-bankruptcy arrangement under Art. 161 of the Italian Bankruptcy Law, or a new debt restructuring agreement under Art. 182-bis of the Italian Bankruptcy Law, in which they can take into account the economic factors arising from the Covid-19 crisis. The request is inadmissible if it is made during pre-bankruptcy proceedings in which a meeting of creditors has already taken place but the required majorities were not reached.
• Procedures to request extensions are streamlined so that debtors may unilaterally extend proposals’ originally envisaged deadlines to fulfil obligations to up to six months. When approving a pre-bankruptcy arrangement, the court in question obtains the judicial commissioner’s opinion.
• Courts may grant debtors a further extension of up to 90 days in cases that fall under both Art. 161, para. 6, and Art. 182-bis, para. 7, of the Italian Bankruptcy Law. This extension may be granted also to
Measure Regulatory reference Amount/Term Operational Guidelines Notes
debtors who otherwise would not have the right to request extensions, on condition that the debtor in question, when requesting the extension, cites all the factors that made the extension necessary and refers specifically to circumstances arising from the Covid-19 emergency.
Courts – once the competent judicial commissioner (if appointed) has provided his/her opinion – can grant the extension if they consider the request to be based on concrete and justified grounds.
Temporary provisions on requests for declarations of bankruptcy and insolvency
Art. 10 of Liquidity Decree Term: applies to requests filed between 9 Mar.–30 Jun.
• The processing of requests filed between 9 Mar.–30 Jun. under Arts. 15 and 195 of the Italian Bankruptcy Law and Art. 3 of Legislative Decree No. 270 of 8 July 1999 is suspended.
• An exception is made for requests submitted by public prosecutors that include a request to issue precautionary or protective measures under Art. 15, para. 8, of the Italian Bankruptcy Law.
• If a request filed between 9 Mar.–
• The government opted for a general measure that suspends the processing of all requests involving companies (even those of a large size) that do not fall within the scope of Law Decree No. 347 of 23 Dec. 2003 (“Marzano Decree”). Once the suspension expires, requests will be processed.
• The rationale behind this measure is to grant entrepreneurs a period in which they can assess the use of alternative means to cope with their
Measure Regulatory reference Amount/Term Operational Guidelines Notes
30 Jun. leads to a declaration of bankruptcy, the period 9 Mar.–30 Jun. will not be taken into account when calculating the time limits envisaged under Arts. 10 and 69-bis of the Italian Bankruptcy Law.
situation of crisis, without the risk of exposing themselves to civil and criminal liability related to the worsening state of insolvency (as the worsening is largely due to factors beyond their control).
• An exception is made for requests submitted by public prosecutors that include a request to issue precautionary or protective measures under Art. 15, para. 8, of the Italian Bankruptcy Law.
• The suspension period is not taken into account when calculating the one-year term that companies have to declare bankruptcy (which starts from the date a company is removed from the companies’ register) or when calculating the terms envisaged under Art. 69-bis of the Italian Bankruptcy Law for the filing of claw-back actions – this to avoid the suspension precluding the filing of claims against removed companies and having a negative impact on the equal treatment of creditors.
Measures regarding the suspension of business activities and other restrictive measures
Measure Regulatory
References Beneficiaries Amount/Term Operational Guidelines Notes
Until 3 May
PMD 10 April applies, whereby
all business activities are
suspended except for public
utilities, essential services and
activities listed in Annex 3 of
PMD 10 April102.
Exemption, following notification
to the competent prefecture, only
for: (a) activities needed to ensure
the continuity of the activities
above, aerospace and defence
activities, and activities of
strategic importance for the
economy; (b) continuous
production plants, and (c)
aerospace and defence activities
and activities of strategic
importance for the national
economy103.
From 4 May until 17 May
PMD 26 April applies, whereby
all business activities are
• Art. 2 of
PMD 10
April105
• Art. 2
PMD 26
April
Companies • From 14 Apr. until 3
May106 PMD 10
April applies
• From 4 May until 17
May PMD 26 April
applies107
Until 3 May
• Ascertain whether the activities you
carry out fall within those that may
automatically continue or require
notification according to PMD 10
April.
• Go, if the activities require
notification, to the website of the
prefecture of the province where the
activity is carried out, use the
template notification form available
there and send it to that prefecture.
• Ascertain, in order to carry out
preparatory activities for the
reopening, whether the activities you
carry out fall within those listed in
Annex 3 of PMD 26 April.
From 4 May until 17 May
• Ascertain whether the activities you
carry out fall within the activities
listed in Annex 3 of PDM 26 April
which are allowed to continue/restart
Until 3 May
• Companies may carry out exempted
activities (barring a subsequent
suspension measure issued by the local
prefecture) once they notify the local
prefecture.
• Continuous production plants may
continue operations on condition that
suspension would: (a) seriously harm
the plant, or (b) risk causing an
accident.
• Following communication to the
competent prefecture, companies
whose activities are suspended are
allowed to: (a) access, through their
employees or delegated third parties,
the company’s premises for
surveillance, maintenance, payment
management and cleaning/sanitation
purposes; and (b) ship stocked goods
to third parties and receive goods to be
stocked108.
102 The activities exempted from suspension are listed in Annex 1 of the Ministry of Economic Development Decree of 25 Mar; Annex 3 of PMD 10 introduces changes to the list.
103 With regard to aerospace and defence activities and activities of strategic importance for the national economy, PMD 22 March allowed these to continue subject to authorisation from the competent prefecture. PMD 10 April allows these
activities to continue simply following notification to the competent prefecture.
Measure Regulatory
References Beneficiaries Amount/Term Operational Guidelines Notes
suspended except for public
utilities, essential services and
activities listed in Annex 3104 of
PMD 26 April.
While PMD 26 April extends
significantly the activities listed
in Annex 3 which are allowed to
continue automatically, the
decree does not provide any
exception, prior notification to
the competent prefecture, for
activities not listed in the
mentioned annex.
Companies whose activities are
already allowed to continue on 4
May carry on their activities in
accordance with the shared
protocol to contain the spread of
Covid-19 in workplaces signed on
24 April 2020 as well as with any
further protocols applicable to
their specific business sector.
automatically starting from 4 May.
• Starting from 27 April, companies
whose activities can restart pursuant to
PMD 26 April on 4 May, are allowed
to carry out preparatory activities for
the reopening.
From 4 May until 17 May
• Companies whose activities are
allowed to continue must comply with
the shared protocol to contain the
spread of Covid-19 in workplaces
signed on 24 April 2020 as well as with
any further protocols applicable to
their specific business sector.
• Following communication to the
competent prefecture, companies
whose activities are suspended are
allowed to: (a) access, through their
employees or delegated third parties,
the company’s premises for
surveillance, maintenance, payment
management and cleaning/sanitation
105 Until 13 Apr., suspension of business activities was governed by Art. 1, para. 1, points a), d), e), g) and h), of PMD 22 March.
106 PMD 22 March applied from 23 Mar. until 3 Apr.; PMD 1 Apr. extends the applicability of PMD 22 March to 13 Apr.
107 However, paragraphs 7, 9 and 11 of Art. 2 of PMD 26 April apply starting from 27 Apr.
108 Prior to PDM 10 April, PMD 22 March only required companies subject to suspension to ship stored goods by 25 Mar. without providing any provision regarding the possibility to carry out surveillance, maintenance, payment
management and cleaning/sanitation activities.
104 Annex 3 of PMD 26 April extends the list of activities which are allowed to continue significantly.
Measure Regulatory
References Beneficiaries Amount/Term Operational Guidelines Notes
purposes; and (b) ship stocked goods
to third parties and receive goods to be
stocked.
Additional Covid-19 containment
measures for the entire country or
parts of it may be adopted until
31 Jul. (the date the Cabinet
declared, on 31 Jan., the state of
emergency will end).
Arts. 1–3 of
LD 25 March
Companies Until 31 Jul. Remain updated on new measures The measures are enacted by prime
ministerial decrees.
Measures can be adopted, pending prime
ministerial decrees:
i. by the Ministry of Health in cases of
extraordinary need and urgency;
ii. by the regions, in relation to
supervening circumstances increasing
the health risk in the given region.
Regions may adopt more restrictive
measures than those of the
government but not ones that affect
business activities or activities of
strategic importance for the national
economy; and
iii. by mayors, in compliance with the
governmental measures and the
restrictions under the above point ii.
Prime Ministerial Decrees of 8, 11 and 22
Mar. 2020 continue to apply in full. All
other Covid-19 measures (inc. regional
ordinances) still in force continue to apply
for a maximum of 10 days.
Analysis of criminal liabilities in the time of Covid-19
(updated following Prime Ministerial Decree of 26 April 2020) 109
109 The measures on the following pages apply from 4 to 17 May 2020, with a few exceptions, which will be indicated below, effective from 27 Apr
Criminal liability related to the new self-certification form 110
Content Penalties Notes
Confirmation that the holder:
- is not subject to quarantine and has not tested positive for Covid-19
- is aware of the regulations restricting personal freedom of movement and of the related penalties
- is aware of the further limitations imposed in the Regions111 of departure and arrival, also specifying which Regions they are and indicating that the movement falls within one of the permitted cases identified by those Regions
The holder must state the departure point and destination and select one of the following reasons for the journey:
• proven work-related needs
• absolute urgency (for travel to another Region)
Failure to comply with the rules restricting freedom of movement is punished with a fine of EUR 400–3,000.
The fine is EUR 280 if paid within five days112 and EUR 400 if paid within 60 days.
The fine is doubled for repeated violation. If the violation takes place through the use of a vehicle, the fine is increased by up to one third.
In addition, businesses may close for 5–30 days.113
For those who, having tested positive for Covid-19, violate the obligation of quarantine,114 the criminal penalty under Art. 260 of the Law on Health applies, which now115 provides for imprisonment of 3–18 months and a fine of EUR 500–EUR 5,000. If an individual exposes others to the contagion, this penalty does not apply when the more serious crime of negligent
LD 25 March has therefore replaced the previously applicable criminal penalty under Art. 650 of the Italian Criminal Code with an administrative penalty. The new administrative penalty also applies if the conduct was carried out before the decree came into force (i.e., before 26 Mar.): in such cases, the administrative fine applies in the minimum amount reduced by half (thus EUR 200).
With reference to the new administrative penalty, the Decree is in any case without prejudice to the application of criminal law, where the conduct constitutes a criminal offence.118
For violation of Art. 260 of the Law on Health committed before 26 Mar., the previously provided penalties apply (imprisonment for up to six months and
110 Based on the provisions of the PMD 26 Apr. The columns "Penalties" and "Notes" summarise what was introduced by the Law Decree of 25 Mar
111 With reference to further regional measures, reference is made, by way of example, to Lombardy Region Ordinances no. 521 of 4 April 2020, no. 522 of 6 April 2020, no. 528 of 11 April 2020 and no. 528 of 24 April 2020, concerning,
among other things: travel, presence of people in public places and outdoor and sports activities; retail trade; food and drink delivery activities; home delivery of goods; sale of goods via internet, correspondence, telephone, television and
radio; other economic activities; activities of the Public Administration.
112 The deadline of 5 days has been extended to 30 days until 31 May 2020.
113 In the cases referred to in Art. 1, para. 2, points i), m), p), u), v), z) and aa), of LD 25 Mar.
114 More specifically, it is a violation of the “absolute ban on persons subject to quarantine because they tested positive for the virus” laid down in Art. 1, para. 2, point e), of LD 25 Mar.
115 Penalties have been replaced and increased by LD 25 March.
Content Penalties Notes
• situations of necessity (including travels to meet relatives and assimilated persons)
• health reasons
The form includes space to include any additional details considered useful
epidemic under Art. 452 of the Italian Criminal Code or other more serious crimes against public/individual health apply116
Imprisonment of one–six years applies for those who make false declarations in their self-certification (Art. 495 of the Italian Criminal Code).117
a fine of EUR 20.66–413.17).
Criminal liability related to people moving around and entering Italy and passing through Italy
Measures Exceptions Penalties Notes
118 The practical application of the provision and the complete reconstruction of the possible regulatory framework will help understand whether the administrative penalty will be added to offences such as false declaration, negligent injury,
manslaughter, or negligent epidemic.
116 The possibility of contesting the crime of manslaughter or negligent injuries has been raised from various sources.
117 This is indicated by the same self-certification made available by the Ministry of the Interior: in light of caselaw, the falsehood in self-certification under Arts. 46 and 47 of Presidential Decree 445 of 2000 amounts to the crime referred to
in Art. 483 of the Criminal Code.
Measures Exceptions Penalties Notes
Moving around Italy119
People are permitted to travel throughout
the Region in which they are currently
living only for proven work-related
needs, for health reasons and for necessity.
Travelling to meet relatives and assimilated persons is considered as a situation of necessity (in compliance with the ban on groupings, respecting the interpersonal spacing of at least one metre and using face masks).
Travelling to another Region is permitted only for proven work-related needs, for health reasons and for absolute urgency.
In any case, it is possible to return to one’s home, domicile or residence.
People in quarantine because they have
tested positive for Covid-19 and those with
symptoms of respiratory infection and a
temperature of above 37.5° C are
prohibited from travelling.
Any form of grouping in public and private places is prohibited.
Entering Italy120
Restrictions regarding people permanently or temporarily entering Italy (with private/own means or via public transport) do not apply to: ‘travelling personnel’123 employed by companies with registered offices in Italy; crew of means of transport; healthcare workers entering to exercise their profession; cross-border workers, entering and leaving for work or returning to their residence, home or domicile; and personnel in charge of transporting goods.
Failure to comply with the rules restricting freedom of movement is punished with a fine of EUR 400–3,000.
The fine is EUR 280 if paid within five days and EUR 400 if paid within 60 days.
The fine is doubled for repeated violation. If the violation takes place through the use of a vehicle, the fine is increased by up to one third.
In addition, a business may be closed from 5 to 30 days.
For those who, having tested positive for Covid-19, violate the obligation of quarantine, the criminal penalty under Art. 260 of the Law on Health applies, which now provides for imprisonment of 3–18 months and a fine of EUR 500–EUR 5,000. If an individual exposes others to the contagion, this penalty does not apply when the more serious crime of negligent epidemic under Art. 452 of the Italian Criminal Code or other more serious crimes against public/individual health apply.
Imprisonment for up to two years is applicable in case of untrue declaration (Art. 483 of the Italian Criminal Code).
LD 25 March has therefore replaced the previously applicable criminal penalty under Art. 650 of the Italian Criminal Code with an administrative penalty. The new administrative penalty also applies if the conduct was carried out before the decree came into force (i.e., before 26 Mar.): in such cases, the administrative fine applies in the minimum amount reduced by half (thus EUR 200).
With reference to the new administrative penalty, the Decree is in any case without prejudice to the application of criminal law, where the conduct constitutes a criminal offence.
For violation of Art. 260 of the Law on Health committed before 26 Mar., the previously penalties apply (imprisonment of up to six months and a fine of EUR 20.66–413.17).
119 Based on Prime Ministerial Decree of 26 Apr., which replaced PMD of 10 Apr.
Measures Exceptions Penalties Notes
Entering Italy for permanent stay with
private/own means: people entering Italy must immediately notify the prevention dept at the local health authority of their entry; they will be subject to health surveillance and 14-day self-isolation. Anyone who shows symptoms associated with Covid-19 must promptly call the local authority’s dedicated hotline.
Entering Italy for temporary stay with
private/own means: people entering Italy for proven work-related needs for a maximum of 72 hours (extendable by a further 48 hours), must provide a declaration certifying the need for entry. They must also immediately notify the prevention dept at the local health authority of their entry. Anyone who shows symptoms associated with Covid-19 must promptly notify the prevention department at the local health authority and self-isolate.
Entry via public transport (air, sea, lake, rail
or land transport) for permanent or
temporary stay:121 people must, when
boarding, provide the carrier or shipowner
120 Based on the decrees of the Ministry of Infrastructure and Transport of 17, 18 Mar. and 3 Apr. 2020 as subsequently reproduced in the PMD of 26 Apr. (which replaced PMD of 10 Apr.), and on the decrees of Minister of infrastructure
of 12 and 22 April. It should also be noted that the decrees of 18 Mar. 2020, 12 April 2020 and 22 Apr. 2020 also provide for: on the modalities of transport to and from Region Sicily and Region Sardinia; on further restrictions for
interregional air, rail and car transport.
123 The expression in Italian is personale viaggiante and seems to refer to people who work in the transport sector.
121 See the Ordinance of the Ministry of Infrastructure and Transport of 28 Mar. and the decree of the Ministry of Infrastructure and Transport of 3 Apr. 2020, as subsequently reproduced in PMD of 26 Apr., which replaced PMD of 10
Apr.
Measures Exceptions Penalties Notes
a declaration indicating:
• the reason for the journey, which must be justified by proven work-related needs, absolute urgency or health reasons;
• address of where they will undergo the period of health surveillance and self-isolation;
• the private/own means of transport they will use to reach that address; and
• a phone number.
Boarding is denied to those with fever or if the above documentation is incomplete
The obligations and procedures for permanent or temporary stay in Italy described above also apply
Passage through Italy122
Passage via land transport (with private/own means): people must immediately notify the prevention dept at the local health authority (see above); the period of stay in Italy is 24 hours (extendable by a further 12 hours).
Passage via air transport: people must provide the carrier the declaration described
122 See Decree of the Ministry of Infrastructure and Transport of 3 April 2020 as subsequently reproduced in PMD of 26 Apr. (which replaced PMD 10 Apr.)
Measures Exceptions Penalties Notes
above.
Anyone passing through Italy (be it by land or by air) who shows symptoms associated with Covid-19 must promptly notify the prevention dept at the local health authority
Criminal liability related to communications to the Prefect 124
Private Sector Activities Obligated Person Penalties Notes
As far as it is concerned in this section, the activities set out in Annex 3, identified on the basis of the ATECO Code, may continue or resume without any communication
In addition, the activities permitted until 4 May may continue.
Companies that resume operations on 4 May may start doing all the preparatory work (27 Apr. was the official date for starting preparatory work).
Until 3 May 2020, the following activities can continue if authorised under PMD 22 Mar. or following notification to the local prefect:
Legal representative If non-authorised activities continue or in case of absence of the necessary authorisation or communication, the administrative fine of EUR 400–3,000 may apply. The fine is doubled for repeated violation.
In the cases expressly indicated,126 the administrative penalty of closure of the business may be imposed for 5–30 days. The provisional closure of the business for up to five days may also be ordered when the violation is ascertained and where necessary to prevent the violation from continuing or being
It is not possible to exclude that the individual employee (and his/her employer also as accomplice) may be charged with violations of the provisions restricting people’s movement with the application of the related penalties under Art. 4 of LD 25 March and indicated above with reference to travel and self-declaration.
As mentioned, it is also not possible to exclude, in the case of an individual exposing others to contagion, an offence of negligent or willful misconduct to the detriment of public/individual health.
124 On the basis of PMD 10 Apr., which has been replaced by PMD of 26 Apr.
126 In the cases referred to in Art. 1, para. 2, points i), m), p) , u), v) , z) and aa) of Law Decree No. 19 of 2020.
• aerospace and defence industry activities inc. manufacturing, facilities, materials, services and infrastructures that are essential for national security and public aid; and
• other activities of strategic importance for the economy.
Until 3 May 2020, the following activities can continue only after notifying the local prefect:
• activities necessary to ensure supply chain continuity: (a) of the activities listed in Annex 3, (b) of the authorised activities, and (c) of activities of public utilities and essential services; and
• activities of plants with a continuous production cycle,125 the interruption of which would cause serious damage to the plant or risk of accident
For suspended activities, after notifying the local prefect:
• employees or delegated third parties can access the company’s premises for the following purposes: (a) surveillance, (b) conservation and maintenance, (c) payment management, and (d) cleaning and sanitation; and
• companies can ship goods in stock to third parties and receive goods to be placed in stock.
repeated.
If an individual gives untrue statements to the prefect, he/she can be charged with the crime under Art. 483 of the Italian Criminal Code, which envisages imprisonment of up to two years. If the non-authorised activity continues, the abovementioned administrative penalties may apply.
125 No notification to the local prefecture is required for the activity of facilities that help ensure essential public service.
Further cases of criminal liability
Regulatory References Provisions Penalties Notes
Urgent provisions for
pharmacies to sell personal
protective equipment (“PPE”)
(Extraordinary Commissioner
Order No. 9 of 9 Apr.)
• Pharmacies are allowed to sell PPE even in the absence of the reference packaging, i.e., out-of-pack. The retail sale price of a PPE unit must be at or below the price of the pack divided by the number of PPE units in the pack.
• When opening packs, the pharmacy ensures to preserve the microbiological quality of each unit of PPE, inc. by having its staff take standard precautionary measures (hand hygiene, use of masks, gloves and gowns).
• Pharmacies can also provide consumer information in a simplified way (e.g., by putting up a sign at the point of sale).
• Each pharmacy must ensure that the packaging information is kept (name, manufacturer's and/or distributor's name, quantity, date of arrival and. where available, batch number) and the stock information as well (number of packets and number of pieces of PPE inside each one).
Breach of the order is punishable with a fine of up to EUR 206 or imprisonment for of up to three months (under Art. 650 of the Criminal Code) unless the breach constitutes a more serious offence.
Breach thus entails a criminal not an administrative penalty. Breach could also amounts to a negligent/malicious crime against public/individual health if the breach involved exposing others to the contagion.
Compliance with Italian Legislative Decree No. 231/2001 in the time of Covid-19
Potential Risks
Potential risks of criminal liability for the company under LD 231/2001 for:
• manslaughter and serious or very serious injuries unintentionally caused by violating health and safety at work regulations, in the event of death or injuries due to Covid-19 infection at work;127 and
• other offences relevant under LD 231/2001, in relation to which the Covid-19 pandemic could indirectly constitute an additional source of risk. For example, and without limitation:
− offences against industry and trade (for example, with reference to the trade of masks and personal protective equipment);
− IT offences and unlawful data processing (considering, among other things, the increased use of IT tools as a result of the extensive recourse to smart working);
− offences regarding relationships with public authorities/entities and tax offences (for example, with reference to the relationships with the public authorities with regard to controls and the access to wage support measures; State aid; public financing; participation in simplified tendering procedures; tax benefits; etc.);
− corporate offences (for example, with reference to proper corporate information, for both non-listed and listed companies); and
− organised crime (for example, with reference to the risks related to suppliers, also considering increased vulnerability in times of crisis).
• Potential risk of penalties against the company – pecuniary fine, disqualification measures (also applicable as precautionary measures), publication of the judgment, and confiscation (and also precautionary seizure) of the price or profits from the offence;
• potential reputational damage; and
• potential directors’ liability for breach of their duties regarding the adequacy of the company’s organisational, administrative and accounting structure and of their duty to manage the company with care.
127 Confirmed cases of coronavirus infection at work are considered accidents at work under Art. 42 of the Cura Italia Decree.
Main Measures
− Assess the risks arising, directly and indirectly, from the pandemic, and whether to update the risk assessment documentation128
on which the 231 Model is based, the company’s policy regarding health and safety at work, and, if necessary, the 231 Model.
− Promptly adopt, keep updated, and effectively apply suitable protocols for the prevention of the risk of infection, in full compliance with the emergency regulations and the public authorities’ orders in force (anti-contagion safety protocols − prevention measures on hygiene and workplace sanitising, company organisation, personal protective equipment, access of suppliers to the company, health surveillance, communications, training, etc.), focusing also on the relationships with suppliers, clients and consultants. 129
− Consider the adoption and implementation of additional/strengthened procedures and controls with reference to the risk areas indirectly influenced by the pandemic, for example with reference to corporate information.
− Have the company’s 231 supervisory body constantly and thoroughly monitor130 131 the functioning of, and compliance with, the 231 Model (in light also of the potential indirect effects of the pandemic on areas of risk other than the health and safety area) and the related protocols for the prevention of the risk of injuries or death from Covid-19 infection, and compliance with
128 Including the updating/supplementing of the DVR and the DUVRI. See also the note No. 89 of 13 March 2020 of the National Labour Inspectorate on “Employer’s obligations – Coronavirus emergency risk assessment” (which highlights, among
other things, that it is appropriate to draft a specific appendix to the DVR for the traceability of the implemented measures).
129 See, particularly, Art. 30 of Legislative Decree No. 81/2008 and the emergency regulations (PMD 26 April, the Regions’ ordinances, etc.). According to the PMD 26 April, among other things, companies whose activities are not suspended
must comply with the contents of the Protocol 14 March signed by the government and the trade unions, as integrated on 24 April 2020 (Annex 6 to PMD 26 April), as well as, with reference to the respective areas of competence, the shared
protocol to contain the spread of Covid-19 in construction sites signed on 24 April 2020 among the Ministry of Infrastructure and Transport, the Ministry of Labour and Social Policy and the trade unions (Annex 7 to PMD 26 April), and the
shared protocol to contain the spread of Covid-19 in the transport and logistics sectors signed on 20 March 2020 (Annex 8 to PMD 26 April); failure to apply these protocols, thus not ensuring adequate levels of protection, will cause the
company activity to be suspended until safety conditions are restored. The Protocol 14 March − referred to initially by PMD 22 March, then by PMD 10 April and subsequently, as supplemented on 24 April 2020, by PMD 26 April − provides
for, particularly, measures concerning communications, entry into the company, access to the company by external suppliers, company cleaning and sanitising, personal hygiene precautions, personal protective equipment, management of
common spaces, company organisation (shifts, travels, smart working and changes in production levels), management of employees’ entry and exit, internal movements, meetings, internal events and training, management of symptomatic people
at work, health surveillance/company doctor/employees’ safety representative, and updating of the protocol, providing for, among other things, the establishment in the company of a committee for applying and verifying the protocol rules. In
this respect, see also the paragraph “Measures to support employment – impact on employment relationships and planning the return to workplaces” above.
130 As a general rule, the activities of the 231 supervisory body must be carried out remotely.
131 Including also the analysis of the reports received.
Main Measures
the relevant provisions of the emergency regulations and public authorities’ orders.
− Have the 231 supervisory body encourage the updating of the 231 Model if necessary, and the carrying out of awareness raising and training activities132
concerning the risks arising directly and indirectly from the pandemic and the related prevention protocols.
− Ensure efficient and constant information and communication flows133 – and enhance them where necessary − between the 231 supervisory body and the corporate bodies and functions, inc., among others:
• the governing body and the corporate control bodies, also guaranteeing constant and effective reporting to them;
• the employer, his/her delegated managers, the head of the prevention and protection service, the company doctor, the employees’ safety representatives and the people in charge of first aid and emergency management;
• the human resources, legal, health and safety, internal audit and compliance functions; and
• the crisis committee.
132 The training activities must be carried out remotely.
133 Among other things, the 231 supervisory body shall provide information input in relation to the emergency regulations issued over time and shall ask for information in order to verify that the biological risk from Covid-19 infection has
been assessed (assessment that must be made by the employer), whether the additional risks that could arise indirectly from the pandemic have been assessed, and that the emergency regulations and the public authorities’ orders are complied
with (e.g., with reference to the suspended or permitted activities, the communications to the Prefect, etc.) and the related risk prevention measures are adopted and effectively applied.
Finally, the form for the request for a guarantee on financing of up to Euro 25,000 under Article 13, paragraph 1, letter m), of the Liquidity Decree includes, among other things, the declaration that the final beneficiary is not subject to judicial
orders that apply the penalties provided under Article 9, paragraph 2, letter d) of LD 231/2001 (i.e., the exclusion from financing, contributions or subsidies, and the revocation of those already granted).
Data protection recommendations
Context Type of data processing Regulatory References
Recommendations
Processing personal data of workers
Questionnaires regarding their: a) last known whereabouts, b) health, and c) exposure to Covid-19
• GDPR (esp. Arts. 6, 9 and 13)
• Art. 2-sexies of LD 196/2003
• Protocol 14 March – implemented by PMD 22 March
• European Data Protection Board statement of 20 Mar.
• Track only necessary data (e.g., do not ask for information regarding family members)
• Provide employees with a privacy notice by email or hard copy and always have copies posted at the entrance and/or on the intranet
• Include, in accordance with the protocol, the following about the data processing in the privacy notice: a) its legal basis, i.e., to comply with the Cura Italia Decree and the PMD 22 March; and b) specification that the purpose is to protect health and safety at work and to prevent the spread of Covid-19
• Train staff involved in the collection/processing of personal data on how to keep the data confidential
• Ensure the privacy of those who have tested positive for Covid-19 or show symptoms: their health status may be disclosed only to the extent necessary to ensure health and safety at work
• Ensure the data protection officer is always involved in the decision-making process concerning data processing; if no data protection officer, involve the person in HR responsible for privacy-related matters
• Store personal data for no longer than necessary to manage the business during emergency
Context Type of data processing Regulatory References
Recommendations
Taking of temperatures at the workplace entrance
• GDPR (esp. Arts. 6, 9 and 13)
• Art. 2-sexies of LD 196/2003
• Protocol 14 March – implemented by PMD 22 March
• European Data Protection Board statement of 20 Mar.
• No storing of temperatures should be carried out, unless it is necessary for the purpose of documenting the reasons for not allowing the person to enter (i.e., temperature of above 37.5°C)
• Ensure the privacy of those with a temperature above 37.5°C
• Explain the privacy notice orally or provide a written summary of the notice; to avoid procedural encumbrances, also have copies available at the entrance
• Train the staff involved on how to minimise the privacy risks related to taking temperatures: the best option is to obtain advice from medical professionals
Additional data processing
• GDPR (esp. Arts. 6, 9 and 13)
• Art. 2-sexies of LD 196/2003
• Protocol 14 March – implemented by PMD 22 March
• European Data Protection Board statement of 20 Mar.
Before carrying out investigations that are different to or go beyond those envisaged in the protocol, carefully assess the matter with the: a) data protection officer (if one); b) company doctor; c) individual responsible for workers’ safety; and d) trade union representatives. This assessment might require a data protection impact assessment under Art. 35 of the GDPR
Monitoring activity connected with remotly working
• GDPR (especially Arts. 6, 9 and 13)
• Law 300/1980 – Work Statue
• Protocol of 14 Mar. – implemented by the Prime Ministerial decree of 22 Mar.
• European Data Protection Board statement of 20 Mar.
Possible monitoring activities, employees must be notified before the company carries out any remote checking of the performance, under Art. 4 of Workers’ Statute and Privacy law.
Context Type of data processing Regulatory References
Recommendations
Data processing through mobile apps to prevent the spread of Covid-19
Geolocalisation data processing
• Art. 74 of Cura Italia Decree
• Request for mandate – European Data Protection Board Plenary meeting 7 Apr.
• No law currently exists that permits the processing of individuals’ geolocalisation data to prevent the spread of Covid-19; in any case, any such permission would allow only the government to do so.
• Companies may, according to the President of the Italian Data Protection Authority, only share their geolocalisation data with public bodies to help prevent the spread of Covid-19.
• The mobile app recently developed by the Lombardy region instead enables citizens to carry out voluntary auto-screening, whose results are automatically sent to the public body
Processing personal data of visitors and suppliers at the entrance
Collection of questionnaires regarding their: a) last known whereabouts, b) health status, and c) exposure to Covid-19
• GDPR (esp. Arts. 6, 9 and 13)
• Art. 2-sexies of LD 196/2003
• Protocol 14 March – implemented by PMD 22 March
• European Data Protection Board statement of 20 Mar.
The recommendations above for workers apply – to the extent applicable.
Taking of temperatures at the workplace entrance
The recommendations above for workers apply – to the extent applicable.
Competition law at the time of Covid-19
Area of Responsibility Issues/Opportunities
Possible Solutions
Relationships with competitors and with suppliers/distributors Possibility (in certain circumstances) of increasing collaboration with other undertakings (in the form of cooperation agreements, commercialisation agreements, purchasing agreements, etc.) to ensure the supply and distribution of essential goods/services at fair prices, also in light of the European Commission’s Temporary Framework Communication of 8 April 2020, its Guidelines on the optimal and rational supply of medicines to avoid shortages during the Covid-19 outbreak, and the Italian Competition Authority’s communication of 22 April on cooperation agreements between undertakings.
Carry out an in-depth, case-by-case antitrust analysis to verify whether an agreement with other undertakings can be considered immune from antitrust regulations, which could involve asking the Commission or the Italian Competition Authority for a comfort letter in accordance with the approach envisaged by each in the Temporary Framework Communication and in the communication of 22 April on cooperation agreements between undertakings.
Online sales/e-commerce Prohibition on using aggressive or misleading practices to sell goods/services (especially online) and on charging excessive prices, especially for essential goods/services (relating to health and hygiene, food, etc.).
Analyse, on a case-by-case basis, selling practices that could be considered prohibited.
Update/adopt compliance programmes.
State aid
Provisions Measures Comments
The European Commission’s Temporary Framework
for State aid measures to support the economy in the
current Covid-19 outbreak (approved on 19 March 2020
and amended 3 April 2020) – Art. 107(3)(b) TFEU
The temporary framework allows member states to adopt
measures to support businesses, subject to compliance
with detailed conditions and the Commission’s
authorisation.
Companies must sometimes assess their eligibility in
light of EU law and any conditions set out in the
Commission’s related authorisation decisions. Indeed, a
distorted use of these measures could lead to restitution
claims.
Provisions Measures Comments
Six measures have been authorised for Italy:
• Incentives for the production and supply of medical
devices (Art. 5 of the Cura Italia decree);
• State guarantee to support a debt moratorium for
SMEs (Art. 56 of the Cura Italia decree);
• SACE S.p.A. guarantee to support corporate liquidity
(Art. 1 Liquidity decree);
• State guarantee to support SMEs liquidity (Art. 13
Liquidity Decree);
• State guarantee to support SMEs active in the
agriculture, forestry, fishing and aquaculture sectors (Art.
13 Liquidity Decree);
• Subsidized interest rate regime on loans for SMEs in
Friuli Venezia Giulia active in the agriculture, forestry,
fishing and aquaculture sectors (Art. 12 of Regional Law
no. 5/2020).
The conversion law of the Cura Italia decree also provides for
the support of local public transport operators by means of:
• the prohibition for local administrations to apply
reductions in fees, penalties or penalties due to the fewer
journeys made (Article 92, paragraph 4-bis);
• the possibility of suspending all ongoing procedures
relating to the assignments of local public transport
services, with the option to extend the assignments in
place on February 23, 2020 up to twelve months after the
declaration of conclusion of the emergency (Art. 92,
paragraph 4-ter).
At present these two measures have not yet been authorized by
the European Commission pursuant to Art. 108(3) TFEU.
Golden Power
Measure Regulatory References
Term Notes
Expansion of sectors
falling within the
scope of Golden
Power legislation and
the powers of the
prime minister’s office
Arts. 15–16 of the Liquidity Decree
The expansion of sectors will remain valid until enactment of an implementing decree detailing the strategic assets in the sectors listed in the “Notes” column
The decree adds three categories of activities to the scope of Golden Power legislation:
• supply of critical inputs, including energy or raw materials, as well as food security;
• access to sensitive information, including personal data, or the ability to control such information; and
• the freedom and pluralism of the media.
The decree also confirms that Golden Power legislation continues to apply to assets and business relationships in the following two sectors:
• critical infrastructure, whether physical or virtual, inc. energy, transport, water, health, communications, media, data
processing or storage, aerospace infrastructure, defence infrastructure, electoral or financial infrastructure, and
sensitive facilities, as well as land and real estate crucial for the use of such infrastructure; and
• critical technologies and dual use items as defined in Art. 2, point 1, of Council Regulation (EC) No 428/2009 (15),
inc. AI, robotics, semiconductors, cybersecurity, aerospace, defence, energy storage, quantum and nuclear
technologies as well as nanotechnologies and biotechnologies.
Clarification is also provided that the financial, credit and insurance sectors are subject to Golden Power legislation.
The decree expressly stipulates that the prime minister’s office may initiate Golden Power proceedings ex officio.
Expansion of transactions subject to notification obligations
Art. 15 of the Liquidity Decree
Until 31 Dec. The government must be notified of:
• decisions capable of changing the ownership, control or availability of assets and business relationships in the
abovementioned areas (e.g., decisions to transfer, merge or demerge a company); and
• acquisitions of stakes in companies that hold strategic assets in the energy, transport and communication sectors, or
that operate in one of the five abovementioned areas, if:
the buyer is a non-Italian EU party and assumes control of the company with the asset or the business
relationship; or
the buyer is a non-EU party and acquires: (a) a stake of at least 10%, if the transaction value exceeds EUR 1 m;
or (b) a stake exceeding 15%, 20%, 25% and 50%. Notification is required upon exceeding each threshold.
Non-EU parties must still notify the government of investments that entail acquiring a controlling stake in companies with assets or business relationships in the five abovementioned strategic areas (pending enactment of an implementing decree detailing the strategic assets/sectors).
Appendix – main legislative measures and definitions
(A) National and territorial measures adopted during the Covid-19 emergency
Cura Italia Decree Law Decree No. 18 of 17 March 2020, entitled “Measures to strengthen the National Health Service and economic support for families, workers and enterprises related to the epidemiological emergency by COVID-19”; available in Italian here.
Liquidity Decree Law Decree No. 20 of 8 April 2020, entitled “Urgent measures on access to credit and tax compliance for businesses, special powers in strategic sectors, as well as measures in the field of health and work, extension of administrative and procedural deadlines”, available in Italian here
LD 2 March Law Decree No. 9 of 2 March 2020, entitled “Emergency support measures for families, workers and enterprises related to the epidemiological emergency by COVID-19”; available in Italian here.
LD 25 March Law Decree No. 19 of 25 March 2020, entitled “Emergency measures to deal with the epidemiological emergency by COVID-19”; available in Italian here.
PMD 8 March Prime Ministerial Decree of 8 March 2020, entitled “Further implementing provisions of Law Decree No. 6 of 23 February 2020 laying down emergency measures for the containment and management of the COVID-19 epidemiological emergency, applicable throughout the whole national territory”“; available in Italian here.
PMD 11 March Prime Ministerial Decree of 11 March 2020, entitled “Further implementing provisions of Law Decree No. 6 of 23 February 2020 laying down emergency measures for the containment and management of the COVID-19 epidemiological emergency, applicable throughout the whole national territory”; available in Italian here.
PMD 22 March Prime Ministerial Decree 22 March 2020, entitled “Further implementing provisions of Law Decree No. 6 of 23 February 2020 laying down emergency measures for the containment and management of the COVID-19 epidemiological emergency, applicable throughout the national territory”; available in Italian here.
PMD 1 April Prime Ministerial Decree of 1 April 2020, entitled “Implementing provisions of Law Decree No. 19 of 25 March 2020 laying down emergency measures to deal with the epidemiological Covid-19 emergency, applicable throughout the national territory”; available in Italian here.
PMD 10 April Prime Ministerial Decree of 10 April 2020, entitled “Further provisions implementing Law Decree No. 19 of 25 March 2020, on urgent measures to deal with the epidemiological emergency by COVID-19, applicable throughout Italy”, available in Italian here
PMD 26 April Prime Ministerial Decree of 26 April 2020, entitled “Further implementing provisions of Law Decree No 6 of 23 February 2020 on emergency measures for the containment and management of the epidemiological emergency by COVID-19, applicable throughout the national territory”,
available in Italian here
Protocol 14 March The shared protocol between the Government and the trade unions on measures to fight and contain the spread of the Covid-19 virus in the workplace, signed on 14 March 2020.
(B) Main additional measures referred to in this vademecum
INPS Circular No. 45/2020 INPS Circular No. 45 of 25 March 2020, entitled “COVID-19 emergency leave in favour of employees in the private sector, workers registered with the Separate Account referred to in Art. 2.26 of Law No. 335 of 8 August 1995 and self-employed workers. Extension of paid leave referred to in Art. 33.3 and Art. 33.6 of Law No. 104/1992 for employees in the private sector. Operating instructions”; available in Italian here.
INPS Circular No. 47/2020 INPS Circular No. 47 of 28 March 2020, entitled “Law Decree No. 18 of 17 March 2020 on measures to strengthen the National Health Service and economic support for families, workers and enterprises related to the epidemiological emergency by COVID-19. Special rules on ordinary wage integration treatment, ordinary allowance, redundancy fund in derogation”; available in Italian here.
INPS Circular No. 49/2020 INPS Circular No. 49 of 30 March 2020, entitled “COVID-19 compensation and extension of the deadline for the submission of unemployment applications referred to in Law Decree No. 18 of 17 March 2020. Accounting and tax instructions. Changes to the chart of accounts”; available in Italian here.
LD 148/2015 Legislative Decree No. 148 of 14 September 2015, entitled “Provisions for the reorganisation of the legislation on social safety nets during the employment relationship, in implementation of Law No. 183 of 10 December 2014”; available in Italian here.
LD 196/2003 Legislative Decree No. 196 of 30 June 2003, entitled “Personal Data Protection Code”; available in Italian here.
LD 231/2001 Legislative Decree No. 231 of 8 June 2001, entitled “Rules governing the administrative liability of legal persons, companies and associations, inc. those without legal personality, pursuant to Art. 11 of Law No. 300 of 29 September 2000”; available in Italian here.
MEF Decree 25 March Decree of the Ministry of Economy and Finance of 25 March 2020, entitled “Solidarity fund for loans for the purchase of the first house, pursuant to Art. 54 of Law Decree No. 18 of 17 March 2020”; available in Italian here.
MISE Decree 25 March Decree of the Ministry of Economic Development of 25 March 2020, entitled “Modification of the list of codes in Annex 1 of Prime Ministerial Decree of 22 March 2020”; available in Italian here.
MLPS Decree 24 March Decree of the Ministry of Labour and Social Policies, in agreement with the Ministry of Economy and Finance, of 24 March 2020; available in Italian here.
(C) Other definitions
AIFA The Italian Medicines Agency.
CIGO The Ordinary Wages Guarantee Fund.
CIGS The Extraordinary Wages Guarantee Fund.
Extraordinary Commissioner The extraordinary commissioner for the implementation and coordination of measures to contain and combat the epidemiological Covid19 emergency.
DI Inter-ministerial decree.
FIS The wage subsidy allowance.
SMEs Guarantee Fund The Central SMEs Guarantee Fund established by Law No. 662 of 23 December 1996.
GDPR The General Regulation on Data Protection under Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016.
ISS The Italian National Institute of Health.
MAECI Ministry of Foreign Affairs and International Cooperation.
MEF Ministry of Economy and Finance.
MiBACT Ministry of Cultural Heritage and Activities and Tourism.
MIPAAF Ministry of Agricultural, Food and Forestry Policies.
MISE Ministry of Economic Development.
MIT Ministry of Infrastructure and Transport.
MLPS Ministry of Labour and Social Policies.
TUF Consolidated Act on Finance pursuant to Legislative Decree No. 58 of 24 February 1998.
TUIR Consolidated Act on Income Taxes pursuant to Presidential Decree No. 917 of 22 December 1986.
TULS Consolidated Act of Health Laws of the Royal Decree No. 1265 of 27 July 1934.
This document is provided as a service to clients and other friends for informational purposes only.
It should not be construed or relied on as legal advice.
For further information: Covid19@belex.com