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Italy Extends and Increases Energy Support Measures — Orbitax Tax News & Alerts

Italy has published Decree-Law No. 144 of 23 September 2022 in the Official Gazette, which contains further urgent measures regarding national energy policy, enterprise productivity, and other issues. This includes the extension of the following support measures with increased support:

  • The tax credit for energy (electricity) expenses incurred by qualifying energy-intensive companies is extended for energy purchased and used in October and November 2022, with the credit increased to 40%;
  • The tax credit for energy (electricity) expenses incurred by other qualifying companies is extended for energy purchased and used in October and November 2022, with the credit increased to 30%;
  • The tax credit for natural gas expenses incurred by qualifying companies is extended for natural gas purchased and used in October and November 2022, with the credit increased to 40%; and
  • The 20% tax credit for fuel (diesel and petrol) expenses incurred by qualifying companies engaged in agriculture and fishing activities is extended for fuel purchased and used in the fourth quarter of 2022, net of VAT (credit percentage unchanged).

In addition to the tax credits, the Decree-Law also extends the reduction in the excise duty rates on different fuels, as well as the reduction in the VAT rate to 5% on natural gas used for transport. Recently extended for the period 6 October 2022 to 17 October 2022, the reduced rates are further extended for the period 18 October 2022 to 31 October 2022.