Italy Tax Agency Clarifies Application of Hyper-Amortization to Leased Assets

The Italian Revenue Agency Nov. 7 posted online Letter No. 551/2022, clarifying the application of a hyper-amortization incentive to leased assets. By Dec. 31, 2018, a company submitted an order and made an advance payment of at least 20 percent, to lease machinery under a 67-month lease. The machinery, listed under Annex A of Law No. 232/2016, was delivered to the company in December 2019 and entered into its production system in September 2020. The company sought clarification as to how to calculate the incentive rate based on the minimum tax duration of the lease. The tax agency responded that: ...