The design and the aesthetic concept ensure tax benefits

Banner_BRAND-UMBRELLA-Green png

That PNRR contains numerous measures aimed at supporting and stimulating the competitiveness of Italian companies in the context and continuity of previous actions already granted by Parliament.

Among these are M1C2 mission dedicates itself with its investment 1 to the so-called Transition 4.0 which, by giving its own the numerous tax advantages already approved by the Italian legislature with the previous budget laws, but on the basis of the first indiscretions, subject to extension until 2025, recognizes a tax deduction (together with that for research and development and technological innovation), for companies investing in innovative design activities And aesthetic perception.

Recipients of the tax deduction

The tax relief in question is initially aimed at companies operating in textilefrom fashion andglasses up to include footwear market, jeweler as well as by mobile phoneoffurniture and of ceramic.

An indication, the latter, provided by the 2020 Budget Act, which for the first time added a tax deduction for investments in innovative activities focused on design and aesthetic ideas, and which also writes the beneficiaries who have access to the new measure.

Do not worry about those who do not belong to the aforementioned commercial contexts. The Ministry of Economic Development has actually reassured the insiders by giving onecomprehensive interpretation the law, which therefore also applies to companies with a different task than the one represented in the text of the law, and this to inevitably ensure a direct and concrete strengthening of our Made in Italyregardless of the specific product being marketed or the business area with which the individual company competes.

So one the wide scope of the standard tense a favor arbitrarily all Italian companies naturally focused on innovations that are generally linked to the external or aesthetic aspect of the products or in any case not exclusively focused on functional or technological elements of the products.

The facilitated activities

But what are the activities involved in the grant that “open the doors” to the tax deduction for innovation in design and aesthetic design?

The activities that can be classified as innovation in design and aesthetic design are, albeit in a synthetic way, represented by the same Budget Act for 2020, which recognizes the subsidy for companies that have invested in performance and realization of new products and samples“.

The objective scope of the tax deduction was also better examined by the Ministry of Economic Development, which recognized the benefit in question of the expenses incurred to renew – substantially – the company’s products in terms of shape, characteristic lines, contours, colors, surface texture and ornaments. .

Give more attractivenessby incurring certain costs, its offer with innovations regarding external elements of the products such as the shape or color, not only represents a channel to conquer new market shares and be more competitive, but also provides the opportunity to achieve tax benefits.

Let us e.g. think of the companies operating in the clothing sector and in other sectors where product renewal is envisaged at regular intervals: activities related to the design and creation of new collections or samples that present elements of innovation – according to. the general principles and criteria identified in the Oslo Manual – compared to previous collections and samples with regard to the substances or materials used, their combination, design and shapes, colors or other relevant elements to enable a direct identification of the asset to be placed on the market.

They remain excluded from the service in question, ie works and projects CD routinefor example, the simple adaptation of an existing collection or sample by adding a single product or the variation of a single characteristic of existing products, in particular the simple change of colors or details.

Tax deductions and subsidized costs

For the design and aesthetic creation activities carried out in 2021, the tax deduction is recognized in an amount corresponding to 10% of the relative calculation basis and up to a maximum limit of 2 million euros. The relevant costs for determining the calculation basis are:

– staff costs;

depreciation, lease payments and other costs related to movables and software;

expenditure on research contracts (CD) extra-muros);

– expenditure on consultancy services;

expenditure on materials used for the construction of prototypes.

The recommended methodological approach

In order to obtain the benefit in question, it is desirable to carry out an accurate and detailed analysis focused, primarilyon concrete identification and effective mapping of the activities that can be concretely classified as facilitated design and aesthetic idea as well as on complete identification of the costs to be assumed in the calculation basis and secondly when performing the mathematical calculation of the tax deduction.

Such modus procedure will necessarily see sharing of professionals with different experiences:

to qualify in legal legal disciplines, for example a specific activity as facilitated, to analyze contracts entered into with third parties, to examine the procedures and operating instructions that the company follows to innovate its own product, and to verify called cumulatability with other concessions;

– in accounting and tax matters, first and foremost to identify the expenses incurred by the company that are to be included in the calculation of the benefit, and to calculate the tax deduction.

In addition, be aware that in the presence of one automatic tax reliefwhich does not require prior consent from the Danish Tax Agency, it will be necessary to pay special attention attention to the technical report which testifies to the innovative activities carried out, which will inevitably require the intervention of diligent consultants in order to once again benefit from the tax deduction in question without any problems.

Copyright © – Reproduction Reserved

Banner_articles_ promo_KPMG-Missions png

Leave a Comment