In Italy access to capital gets facilitated
Rules have introduced tax breaks aimed at facilitating access to capital and supporting growth processes of new enterprises through mutual funds according to the European Commission guidelines
The decree regarding rules for the tax breaks fruition by investors of venture capital funds in Italy was published in the Official Gazette on the 28th February 2013. This decree refers to the exemption system concerning proceeds deriving from Venture Capital Funds shareholding.
The above mentioned rules have introduced tax breaks aimed at facilitating access to capital and supporting growth processes of new enterprises through mutual funds according to the European Commission guidelines mentioned in the "Europe 2020" notice.
According to the decree, collective saving investment organizations are supposed to invest at least the 75% of their assets in stock exchange unlisted companies, that is, those medium/ small enterprises that, as mentioned in article 31, are not listed on the stock exchange, that are located in a EU State, which signed an agreement with Italy that allows a proper fiscal information exchange.
Enterprises mainly held by natural persons, subjected to the income tax of the company or other similar tax to be paid according to the local legislation, with no more of 36 months of activity,with a turnover of the last balance sheet not exceeding 50 million euros.
According to the decree, in order to get the tax breaks, investment shares have to be lower than the investment tranche according to EU State aid legislation aimed at stimulating venture capital investments by medium and small enterprises on a 12- month period.
In order to get tax break, SGR (saving management companies) and those individuals in charge of paying the proceeds, will have to keep at the financial Administration's disposal the specific accountant prospectus aimed at confirming the compliance with minimum investment requirements as provided by law.
Income Revenue Authority will collect the tax amount and the pertaining fines, should the above mentioned rules were not respected.