Italy

Italy

Issues 2022 Budget Law

01 Jan 2022

On 30 December 2021, the Italian Government adopted Law n. 234 (Budget Law). It introduces changes to the patent box regime increasing the extra deduction of the eligible R&D expenses from 90% to 110%; extends the tax credit for new high-tech investments to assets purchased during the period from 1 January 2023 to 30 June 2026 (ranging from 5% to 20%); extends the tax credit for R&D activities up to 31 December 2031; introduces tax incentives for new hirings in a form of an exemption from paying social contributions of up to EUR 6,000 per year and a tax relief equal to 100% of contributions for some contracts. The Budget Law has come into effect on 1st of January 2022.