2
Directorate for Science, Technology and Innovation www.oecd.org/December2019 For more information, please visit: http://oe.cd/rdtax Contact us at: [email protected] R&D Tax Incentives : Italy, 2019 Design features Table 1. Main design features of R&D tax incentives in Italy, 2019 † R&D tax credit (Legge di Stabilità 2015, 2017) Tax incentive R&D tax credit Type of instrument Incremental Eligible expenditures † Current, intangibles, depreciation (machinery and equipment) Headline rates (%) 25** Refund Redeemable against income tax liability, regional taxes (IRAP) and social security contributions. Carry-over (years) Indefinite (carry-forward) Thresholds Base amount Average R&D investment cost in the 2012 - 2014 period Floor EUR* 30 000 Ceilings R&D tax relief EUR 10m per year and beneficiary Italy also offers an income-based tax incentive for outcomes of R&D activities. These are beyond the scope of this note. **This rate is raised to 50% for: (i) expenses incurred with respect to R&D contracts signed with universities, and research organizations as well as with independent innovative start-ups and Small and Medium Enterprises (SMEs); and (ii) expenses for employees directly hired to carry out R&D activities. Recent developments and trends Figure 1. Implied tax subsidy rates on R&D expenditures: Italy, 2000-19 1-B-Index, by firm size and profit scenario 1 Disclaimer: http://oe.cd/disclaimer 2 The R&D tax credit (Law 296/2006) was extended from 2009 to 2011 but was only available to firms that had incurred R&D expenditure in 2007-09 and not yet received tax support. -0.05 0.00 0.05 0.10 0.15 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1-B-index Large, Profitable SME, Profitable Large, Loss-Making SME, Loss-Making
