The Revenue Agency, in collaboration with the Ministry of Economic Development, has produced a guide to super and hyper depreciation bonuses. These are two tax provisions contained in the budget law 2017 which aim to promote the modernization of Italian companies and their technological and digital transformation, as part of the industry 4.0 strategy. In particular, the maneuver extends the super-depreciation to 2017 and introduces the hyper-depreciation.
WHAT IS SUPER DEPRECIATION?
Super depreciation is a benefit that provides for a 40% increase in the tax cost of new capital goods purchased by 31 December 2017 for the purpose of deducting depreciation rates and finance lease payments. The bonus is recognized only for income taxes and not for Irap purposes.
WHAT IS HYPER DEPRECIATION?
For entrepreneurs only, from this year hyper-depreciation also arrives, a maxi surcharge that allows the deductible cost of all capital goods purchased to be increased by 150% to transform the company into a technological and digital 4.0 key. Specifically, these are investments in intelligent, interconnected machines, the list of which is provided in Attachment A of the Appendix of the Circular (pages 103-107). The list includes robots, sensors and many other high-tech goods.
The hyper-increase is due only if the asset complies with the guidelines drawn up by the Mise and specified by the circular for each type of machine. In case of doubts about the eligibility of a specific machine for the subsidy, it is possible to request a technical opinion from the Mise. If, on the other hand, the uncertainty relating to the relief is of a tax nature, clarification can be requested from the Revenue Agency.
WHAT ARE THE TIMES?
As mentioned, the latest budget law extended super-depreciation also to investments in new capital goods made in 2017, excluding some motorized means of transport from the extension. However, the deadline may be postponed until 30 June 2018 if by 31 December the seller has accepted the order and the buyer has paid at least a deposit equal to 20% of the total cost.
The same timing also for the hyper-depreciation, but with an additional clarification: to take advantage of the 150% increase, the interconnection requirement must also be respected. Basically, the asset can be "hyper-depreciated" only if, in addition to being put into operation, it will be interconnected to the company's production management system or to the supply network. Until then, he will be able to temporarily enjoy the super-depreciation benefit, if the requirements are met. The hyper-depreciation quotas of 150% which the company did not initially use due to the delay in the interconnection will in any case be recoverable in subsequent tax periods.
COMPARISON OF SUPER AND HYPER DEPRECIATION: HOW MUCH DO YOU SAVE?
The different entity of the surcharges relating to the super and hyper depreciation produces a different tax saving, as illustrated by the following table, which highlights the tax effects of an investment of one million euros made by an Ires subject for the purchase of an asset that benefits from super/hyper depreciation compared to the ordinary depreciation hypothesis:
