Transition 5.0 Tax Credit: An opportunity for your company
As the technological landscape continues to evolve, Italian companies face new challenges to remain competitive. The Italian government, recognising the importance of digitisation and innovation, has introduced the Transition 5.0 Tax Credit, a tax incentive that supports businesses in their investments in advanced technologies.
What is the Transition 5.0 Tax Credit?
The Transition 5.0 Tax Credit is a tool designed to help Italian companies invest in digital transformation, automation, and environmental sustainability projects. This incentive aims to strengthen the competitiveness of companies by facilitating the adoption of new technologies related to Industry 5.0, an evolution of the previous Industry 4.0.
Who is it aimed at?
The tax credit is aimed at all companies resident in Italy, regardless of their legal form, size or sector, provided that they make investments in new capital goods and projects related to sustainability and technological innovation.
Types of eligible investments
Companies wishing to benefit from the Transition 5.0 Tax Credit can make investments in:
- Advanced automation technologies: such as robotics, artificial intelligence and machine learning.
- Environmental sustainability: investments in projects that reduce environmental impact or increase energy efficiency.
- IT infrastructure: software and hardware needed to support advanced digital processes.
Tax benefits
Companies can obtain a tax credit that varies according to the type of investment made. The incentives cover a significant percentage of the costs incurred for the purchase of new capital goods, thus fostering a greater propensity for innovation.
Summary Table
Type of investment | Tax credit | Maximum expenditure limit |
New capital goods (automation and robotics) | 40% | Up to €2.5 million |
IT infrastructure (software and hardware) | 20% | Up to €1 million |
Environmental sustainability projects | 30% | Up to €3 million |
Staff training on new technologies | 50% | Up to €500,000 |
How to access the credit
To benefit from the tax credit, companies must present appropriate documentation proving that investments have been made and that they are consistent with the objectives of the Transition 5.0programme. It is important to turn to experienced tax advisors, such as Taxdry, for support in preparing documentation and managing tax procedures.
Conclusions
The Transition 5.0 Tax Credit represents a unique opportunity for Italian companies to modernise their processes and become more competitive in the global marketplace. If your company is considering investing in technological innovation, contact us to find out how we can help you make the most of this incentive.
