Innovative Start-Ups and SMEs: New Tax Deductions Compensable
With the approval of the Provisions for the promotion and development of start-ups and innovative small and medium-sized enterprises by means of tax breaks and investment incentives, important news have arrived. Investments in these enterprises will be able to enjoy tax deductions that can be converted into tax credits, encouraging innovation and the growth of innovative business activities.
The main benefits
Individuals and legal entities that invest in the venture capital of innovative start-ups and SMEs can benefit from tax deductions and tax credits:
- Natural persons: IRPEF deduction of 50 per cent on the amount invested, up to a maximum of €100,000 per tax period, maintaining the investment for at least three years.
- Legal persons: IRES deduction of 30% on the amount invested, up to a maximum of EUR 1.8 million.
The incentives are applicable for both direct and indirect investments through undertakings for collective investment (OICR).
Transformation of Deductions into Tax Credits
The main novelty of this law is the possibility to transform deductions into tax credits if the deductible amount exceeds the tax due. This credit can be used in compensation through the F24 form.
The measure is operative as of 1 January 2024 for investments made from that time onwards.
How to access the benefits
The tax benefits must be claimed in the tax return. If the deduction exceeds the tax due, the excess can be converted into a tax credit.
For more information and assistance in managing the benefits, please contact us.
