In the text of the legislative decree on internationalization, recently submitted to Parliament for the discussion phase, some significant changes have been made compared to the previously circulated draft. In particular, it has been increased The period of obligation of companies to maintain their activities on the national territory after readmission ranges from 5 to 10 years, That is, withdrawal of already transferred companies.
A provision was then introduced that penalizes any type of subsequent movement, defining sanctions not only for transfers to states outside the EU or the European Economic Area (EEA), but also to states within the EU or EEA. Also defines sanctions for members of the U.S. states.
Relief for businesses, here’s what they are
The purpose of this provision is to encourage the transfer of economic activities already carried out outside the European Union or the European Economic Area from a financial point of view. This law covers a wide range of situations, including not only business activities, but also the practice of arts and professions. In particular, it has been establishedand 50% of the income derived from such activities, During the ongoing tax period at the time of transfer and in the following five tax periods, the taxable base for Ires (or Irpef) and Irap is not formed.
Activities carried out in the national territory in the 24 months before the transfer are not included in this benefit, Possibly to avoid purely instrumental entry/exit practices. To benefit from this tax relief, the taxpayer is required to maintain adequate accounting separation, capable of allowing accurate verification of the correct determination of the income and value of the net production subject to the relief.
The minimum period of repayment to avail these tax benefits is five years. However, for larger companies defined according to the 2003 Community criteria (i.e. with at least 250 employees, a turnover of 50 million euros and a balance sheet total of 43 million euros), this period is extended to ten years.
incentives to provide tax benefits
The provision establishes that if, within the specified period, any new offshoring takes place, even if partial business in another state, which also includes the European Union or the European Economic Area, involves seizing the subsidy regime as a result of paying normal taxes in addition to interest. The effectiveness of these provisions is subject to authorization by the European Commission.
The intention behind this law is clearly visible from the point of view of logic.I provide tax benefits to encourage mechanisms that are considered positive. In particular, we want to support and promote industrial processes that, in the light of experience during the COVID-19 pandemic, have highlighted the need to maintain some production in the national sector. The provision also aims to correct situations of excessive localization by multinational companies, assuming that production processes in some countries may not reach the minimum required quality level.
Recharge Activity Account
Paragraph 3 requires Implementation of an analytical accounting system Its objective is to keep a detailed track of economic activities subject to recovery. For structured companies, especially those operating at a cross-border level, this request should not be a problem, given that they are accustomed to analytical management control mechanisms. it is necessary that Such practices are transparent and not aimed at tax avoidance, Therefore, the minimum period for reshoring should be five to ten years, the latter being expected especially for larger companies, which are considered to be the main companies affected by such events.
In the event of confiscation, the law appears to be clear that the taxpayer must reimburse the taxes already deducted along with interest, but without the application of further clearance. This approach appears to be aimed at recovering the tax benefits received under the preferential law without imposing additional penalties on the taxpayer, which could be interpreted as an incentive for compliance rather than a punishment.