ITALY – R&D - Tax credit
Tax savings opportunities for companies - Process improvement funded with tax credit
Generally Companies, not only big companies, invest in order to keep their business competitive. In some cases, these investments can be considered research and development (R&D) investments and could have the benefit of tax credit up to 50% of the total amount incurred. In other words the Italian tax authority, in order to encourage investments in innovation, funds the 50% of expenses incurred on R&D activities with tax credit.
In accordance with the 2019 Budget Law, tax credit on R&D investment is applicable to the increase of:
- expenses related to the employment costs of the employees involved in the R&D activities, including directors’ fee; and
- expenses related to R&D contracts signed with Universities and Research Organizations as well as with independent innovative start-ups and small and medium innovative enterprises.
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