Italy has published Decree-Law No. 115 of 9 August 2022 in the Official Gazette, which contains further urgent measures to support taxpayers in light of increased energy prices and other ongoing issues. This includes the extension of the following support measures:
- The 25% tax credit for energy (electricity) expenses incurred by qualifying energy-intensive companies is extended for energy purchased and used in the third quarter of 2022;
- The 15% tax credit for energy (electricity) expenses incurred by other qualifying companies is extended for energy purchased and used in the third quarter of 2022;
- The 25% tax credit for natural gas expenses incurred by qualifying companies is extended for natural gas purchased and used in the third quarter of 2022 (25% rate available for both high consumption companies and other companies);
- The 20% tax credit for fuel (diesel and petrol) expenses incurred by qualifying companies engaged in agriculture and fishing activities is extended for fuel purchased and used in the third quarter of 2022, net of VAT.
- The reduced VAT rate of 5% on supplies of natural gas for domestic (civil) and industrial purposes is extended for the months of October, November, and December 2022; and
- The reduction in the excise duty rates on different fuels, as well as the reduction in the VAT rate to 5% on natural gas used for transport is extended until 20 September 2022.
In addition to the support measures, Decree-Law No. 115 also includes penalty measures in relation to the extraordinary solidarity contribution (windfall profits tax) on energy companies. This includes that certain provisions for the reduction of late payment penalties will not apply with respect to the extraordinary solidarity contribution where a taxpayer fails to pay the contribution, in whole or in part, by:
- 31 August 2022, for the advance payment; and
- 15 December 2022, for the balance payment.
Further, if the required contribution payments are not made by these dates, the 30% late payment penalty is doubled to 60%.