Italy MOF Clarifies Individual Income Tax Deduction for Investments in Innovative Start-Ups

The Italian Ministry of Economy and Finance June 1 posted online Tax Court Decision No. 215/2026, clarifying the individual income tax deduction for investments in innovative start-ups. The taxpayer, a director of a start-up, claimed a 50 percent income tax deduction following investment in the start-up. The Revenue Agency disallowed the deduction and imposed penalties because the company wasn’t registered in the special section at the time of the investment. On appeal, the Second Instance Tax Court of Lombardy held that: 1) the company took all of the necessary actions to access the deduction, including submitting the application for registration ...