Italy Tax Agency Clarifies Invoice Discount, Tax Credit Eligibility for Property Transactions Under Earthquake Bonus

The Italian Revenue Agency Feb. 11 issued Letter No. 31/2026, clarifying eligibility for the invoice discount and tax credit under the earthquake bonus on property transactions. The taxpayer, a construction company, converted a building from offices to residential units and sold three units in 2024, offering buyers an invoice discount of 81,600 euros (US$96,856), with payments for the units split between 2024 and 2025. The taxpayer sought clarification on the buyers’ eligibility for the specified deduction and tax credit. Upon review, the Tax Agency clarified that: 1) the buyers were eligible for the deduction only for the amounts actually paid ...