What are the tax benefits provided for innovative startups?
The 2017 Budget Law first introduced a series of tax advantages linked to the investment in an innovative startup, including:
- Exemption from stamp duties and annual fees, at the time of registration of the Startup in the Company’s Register;
- Tax incentives for corporate and private investments in startups;
- Total tax deduction on the revenues resulting from financial instruments offered to collaborators, employees, suppliers or consultants as way of additional remuneration.
Which benefit may I have in investing in an innovative startup?
The 2019 Budget Law has boosted the tax incentives for corporate and private investments in startups. This benefit envisages for individuals a deduction on personal income tax (IRPEF) amounting to 30% of the amount invested, up to a maximum sum of € 1million. As an alternative to the standard deduction, for investments made on or after January 1, 2020, individuals are eligible for an IRPEF deduction of 50% of the amount invested in the share capital of one or more innovative start-ups. This deduction is capped at a maximum annual investment of €100,000, resulting in a maximum deduction of €50,000 per tax period, and is subject to the “de minimis” aid regulations.
For legal entities the benefit consists in a fiscal deduction on the taxable income for company tax purposes (IRES) equal to 30% of the amount invested, up to a maximum of € 1.8million.
