Italy Revenue Agency Clarifies Deductions for Commercial Incentives Provided by Companies

The Italian Revenue Agency Oct. 1 posted online Letter No. 424, clarifying the deductions for commercial incentives (IC) provided by companies. A company manages an online portal that allows its users to make purchases from third-party suppliers. The company provides a reduced price for each direct purchase and the supplier with a partial refund of the amount spent subject to a successful transaction under its IC mechanism. The company inquired if the incentives paid to users qualify as deductible business activity expenses. The agency clarified: 1) the revenue of the company managing the online portal contributes to the corporate tax ...