From 2024 onwards, Decree No. 192/2024 brings a significant change to how capital grants (e.g. for investments or boosting equity) are taxed in Italy.
Grants will now be fully taxable in the year they are received, even if the right to receive them arose earlier.
The option to spread taxation over several years (up to 4) is no longer available.
Companies must handle any timing differences between accounting and tax recognition through deferred taxes.
The RF35 line in the corporate tax return, previously used to spread income, has been removed.
Grants received before the end of 2023 can still follow the old rules.
The reform aims to simplify the process, reduce admin burdens, and align accounting with tax rules.
Companies should take note — especially those managing public funding or investment incentives.
Gaia Pantano
Junior Audit and Corporate Staff