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European Commission Approves Italian Scheme Providing Social Security Contribution Exemption for Employers in Certain Sectors — Orbitax Tax News & Alerts

On 24 November 2022, the European Commission announced its approval of an Italian scheme providing a social security contribution exemption for employers active in the iron, steel, wood, ceramics, automotive, and agribusiness sectors.

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State aid: Commission approves €34.4 million Italian scheme to support companies in the context of Russia's war against Ukraine

The European Commission has approved a €34.4 million Italian scheme to support companies in the context of Russia's war against Ukraine. The scheme was approved under the State aid Temporary Crisis Framework, adopted by the Commission on 23 March 2022 and amended on 20 July 2022 and on 28 October 2022.

The measure will be open to employers active in the iron, steel, wood, ceramics, automotive and agribusiness sectors. In order to be eligible, companies must have suspended their activities during the period between 22 March and 31 May 2022 due to Russia's invasion of Ukraine. Under the scheme, the aid will take the form of an exemption from the payment of the social security contributions due for each month of the abovementioned period, up to €2 million per company, or up to € 250,000 per company active in the primary production of agricultural products

The Commission found that the Italian scheme is in line with the conditions set out in the Temporary Crisis Framework. In particular, the aid (i) will not exceed €250,000 per company active in the primary production of agricultural products and €2 million per company active in all other sectors; and (ii) will be granted no later than 31 December 2023. The Commission concluded that the Italian scheme is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Crisis Framework. On this basis, the Commission approved the aid measure under EU State aid rules.