INTERNATIONAL
Rossella Lo Galbo
Law No. 193/2024, effective as of December 18, following its publication in the Official Gazette on December 17, introduces renewed rules for innovative startups and SMEs.
These changes, in addition to the provisions already outlined for startups under Law No. 162/2024, aim to facilitate access to funding and, in particular, to provide additional tax incentives alongside those already in place.
Specifically, Chapter III of the competition law, from Articles 28 to 33, includes provisions regulating innovative startups and certified incubators.
Key Updates:
Article 28: Updates to Startup Definitions and Requirements
- New Requirements for Innovative Startups:
Innovative startups must now qualify as micro, small, or medium-sized enterprises (MSMEs), as defined by Recommendation 2003/361/EC. Additionally, these startups must have the exclusive or primary business purpose of developing innovative products or services with high technological value. Importantly, they must not primarily engage in agency or consultancy activities.
- Extended Registration Periods:
Startups can remain in the special business registry for up to five years, with an additional two-year extension (for a maximum of seven years) if specific requirements related to business development are met.
- Retention of Incentives:
The new law ensures the continuation of sector-specific incentives for qualifying startups.
Article 29: Conditions for Registry Status
- Innovative startups listed in the special business registry may remain beyond their third year if they meet the new requirements within 6 to 12 months (depending on whether they have been registered for less or more than 18 months).
- If a company no longer qualifies as an innovative startup but meets the criteria for innovative SMEs, it may transfer to the SME registry.
Article 31: Tax Benefits and Deadlines
- The scope of tax benefits is clarified, and the law sets December 31, 2024, as the final deadline for utilizing the 50% deduction on amounts invested by taxpayers in the share capital of one or more innovative SMEs.
Article 32: Tax Credits for Incubators and Accelerators
- Certified incubators and accelerators investing directly or indirectly in innovative startups are eligible for a tax credit starting in the 2025 tax year.
- Credit Details:
- Amount: 8% of the invested sum.
- Maximum Investment: €500,000 per year.
- Conditions: Investments must be retained for at least three years; otherwise, the benefit is revoked, and funds must be returned.
- Budget Cap: €1.8 million per year starting in 2025.
Article 33: Exemptions for Venture Capital Investments
- Conditions for Non-Taxable Income:
Income from qualified investments in venture capital funds by mandatory pension entities and supplementary pension funds is tax-exempt, provided such investments represent:
-
- At least 5% of the portfolio of qualified investments (rising to 10% from 2026 onward).
- Safeguard Clause: Tax benefits for qualified investments made under previous regulations are preserved, regardless of changes to the portfolio composition in subsequent financial statements.
- Application: This exemption applies to financial income from investments made by private pension funds and pension schemes before these provisions came into effect, even if the qualified investment portfolio does not meet the updated thresholds.
Summary:
These updates aim to streamline the regulatory framework for innovative startups and provide greater financial incentives for incubators, accelerators, and investors, fostering innovation and entrepreneurship in the Italian market.
