Funds and the Supplementary Fund
For the year 2020,
Companies/employers entitled to benefit from the new rules regarding the Funds
Maximum period for relief”
For contributions starting on February 23, 2020, the maximum duration is nine weeks with a final end date of August 2020.
Requirement relating to the length of employment of the employees:
The support is available only for employees hired before February 23, 2020. No length of service requirement is applied.
Suspension of payments for enterprises and professionals
The provision is aimed at sustaining taxpayers dealing with liquidity matters arising from the Covid-19 emergency.
The beneficiaries are identified based on income earned in the previous FY.
the Liquidità Decree provides for the suspension of:
a) payment of withholding taxes on employment income and similar income, as well as
b) withholding of local surcharges,
c) VAT and
d) social security contributions and premium for mandatory insurance on employment.
Extension of suspension of tax duties and payments for small taxpayers
Extension of tax credit for sanitation costs in the workplace
Temporary provisions on accounting principles
Temporary measures in support of companies’ liquidity
In order to ensure the necessary liquidity to companies affected by the COVID-19 epidemic, art. 1 of the Liquidità Decree sets out the enabling of disbursements of credit facilities under any form to businesses through the granting of guarantees by SACE (a subsidiary belonging to the Cassa Depositi e Prestiti group), in favor of banks.
SACE could grant, up to 31 December 2020, guarantees up to Eur 200 billion, allocating Eur 30 billion to SMEs, including self-employed workers and professionals VAT holders, to the extent that they already have reached the maximum credit issued by the Central Guarantee Fund for SMEs.
The guarantees could be delivered:
The Liquidità Decree sets forth three guarantee thresholds based on the beneficiary company size:
Lastly, the Liquidità Decree also provides for the State to issue a guarantee on exposures assumed or to be assumed by Cassa Depositi e Prestiti within 31 December 2020 and arising from guarantees on loan portfolios granted by credit institutions. The effectiveness of the above provisions is subject to the approval of the European Commission.
The Measures through the Guarantee Fund for SMEs
The Liquidità Decree lays down new measures of support to SMEs through the Central Guarantee Fund, valid up to 31 December 2020, temporarily derogating the rules applying to the Fund pursuant to L. 662/1996.
The set of measures is extremely detailed; here below we provided some high-level overview.
(previous measures of Cura Italia Decree were)
The Decree Liquidità issued on April 9 provides that:
The guarantees of the Fund shall be granted to all businesses having not more than 499 employees which have been impacted by the Covid-19 spread (even stated by self-declaration pursuant to art. 47 of DPR 445/2000):
The guarantee shall be made available also for insolvent businesses (specific conditions apply)
The Fund could deliver the guarantee in indirect form also in favor of new microcredit institutions (registered within the list pursuant to art. 111 of the Italian Banking Law or having started the business in the 3 years preceding the application) having entered into financings, up to the maximum threshold of 80% of the amount disbursed.
The Fund shall grant guarantee in direct form, up to the amount of 85% of the available provisioning, for baskets of facilities disbursed to SMEs and baskets of minibonds.
In addition, the guarantees already delivered by the Fund shall be extended in time, consistently with the agreed-upon interruption of the payments, or the extension of the maturity of the facilities, requested by businesses in connection with the impacts of the spread of COVID-19 infection.
Civil, criminal, tax, administrative proceedings – Hearings and proceedings deadlines
Judicial hearings in civil, criminal, tax, administrative proceedings, pending before all courts, are postponed to a date after 11 May 2020, thus extending the analogous provisions of the Cura Italia Decree (art. 83, Law Decree No. 18/2020) by a further 26 days.