THE POWERPOINT PRESENTATION

Investment Promotion Department

Enterprise size
Staff headcount *Annual turnover(€/MLN)

> 250

> 50

> 43

Large

≤ 249

≤ 50

≤ 43

Medium

≤ 50

≤ 10

≤ 10

Small

or

Annual balance sheet
total (MLN €) **Dimension

The staff headcount is a compulsory criterion for determining whether an enterprise can be considered small or medium. However, an enterprise
may choose to meet either the turnover or the balance sheet total ceiling. It does not need to satisfy both two requirements and may exceed one ofthem without impact on its SME status.
The staff headcount and the chosen financial thresholds are cumulative, so they both must exist. If the enterprise exceeds the size limits for two
consecutive years, it will lose the status.
In the case of upstream and downstream companies, linked1 or partner2 enterprise’s data must be added to those of the enterprise in question todetermine if it meets the staff headcount and one of the financial thresholds defined. An enterprise is considered autonomous if it is completely
independent or has one or more minority partnerships (each less than 25%) with other enterprises.

* The staff headcount criterion covers full-time, part-time, temporary and seasonal staff, etc. (National labour rules apply)** The annual balance sheet total refers to the value of a company’s main assets
1 - If holdings with other enterprises rise to at least 25% but no more than 50%, the relationship is deemed to be between partner enterprises
2 - If holdings with other enterprises exceed the 50% threshold, these are considered linked enterprises

2

1. Large
investments3

Development contract (1/5)

Development contract is the main incentive managed by Invitalia. It consists of incentives for one or more connected
and functional investment projects (including R&D) of at least € 20 MLN over 3 years, presented by one or morecompanies also in joint form, in the following sectors:▪ Manufacturing▪ Agricultural products processing (included investments for tourism accommodation) - at least € 7.5 MLN;
▪ Tourism▪ Environmental protection.
Projects presented by foreign companies providing a strategic investment of at least € 50 MLN can access to Fast
Track procedure:▪ possibility to jump the queue▪ ad hoc resources▪ time shortening procedures
The development contract includes various forms of financial subsidies:▪ non-repayable grant;▪ soft loan (max 3+10 years with subsidized interest rate);▪ subsidies for interest repayment on loan.
4Development contract (2/5)
Eligible investments:▪ new production unit
▪ capacity expansion* Eligible expenses:▪ land purchase (up to 10%);▪ building works and similar, specific corporate
infrastructures (up to 40% or 70% for tourism);▪ factory-fresh machineries, installations and equipment;▪ computer programs, patents, licenses, know-how(up to 50% of the total eligible investment).

▪ product diversification▪ existing production unit restructuring:fundamental change or significant improvement▪ assets acquisition of an existing production unit
located in distressed areas* R&D eligible expenses:▪ employees;▪ factory-fresh tools and equipment, only for the period
in which they are used for the R&D project;▪ contract research, knowledge and patents acquired or
licensed in outsourcing, as well as costs for consulting
services and other services used exclusively for the
R&D project;▪ general expenditures;▪ any material used for the project.
* N.B. expenses are eligible if incurred after the date of application

5

Development contract (3/5)
Aid intensities for enterprise size

Manufacturing

R&D

Large

MediumSmall

Southern Regions:Campania, Apulia,
Basilicata, Calabria,
Sicily and Sardinia

25%

35%

45%

Central-Northern
Regions:
only listed cities

10%

20%

30%

Rest of Italy

No eligibility

10%

20%

All the Italian
territory

50% ind. research
25% exp. develop.

60% ind. research
35% exp. develop.

70% ind. research
45% exp. develop.

The effective mix of the funds granted can’t exceed 75% of the total eligible expenses.

6Development contract (4/5)
Let’s imagine an investment in manufacturing/tourism of € 20 MLN▪ large: € 5 MLN grant (soft loan if required*)South of Italy(Campania, Apulia, Basilicata,
Calabria, Sicily and Sardinia)▪ medium: € 7 MLN grant (soft loan if required*)▪ small: € 9 MLN grant (soft loan if required*)* Requiring a soft loan will reduce the grant amount provided▪ large: € 2 MLN grant (soft loan if required*)
Central-Northern regions of Italy(example: Lombardy, Lazio,
Piedmont, Veneto, etc.)
N.B. only listed cities▪ medium: € 4 MLN grant (soft loan if required*)▪ small: € 6 MLN grant (soft loan if required*)* Requiring a soft loan will reduce the grant amount provided

The data above reported must be considered just as an exemplification!

7

Development contract (5/5)* Until January 1st, 2021

Total investments: € 6.3 BLN
Investments granted: € 2.8 BLN
Foreign investors: +40*

Projects financed: 179
Jobs created: 97,658

Total investment: € 47,9 MLN
Funded: € 11,2 MLN

Total investment: € 446 MLN
Funded (R&D only): € 49 MLN

Total investment: € 28,7 MLN
Funded: € 7,1 MLN
Total investment: € 78 MLN
Funded: € 27 MLN

Total investment: € 68,6 MLN
Funded: € 26,1 MLN

8

Law 181/89 – Distressed areas (1/3)

This incentive aims at increasing industrial development and employment growth in areas affected by industrial crisis. It
provides funding - grants and loans - for investment projects of at least € 1 MLN of eligible expenses aimed at:▪ revitalizing industrial activities;▪ safeguarding employment levels;▪ attracting new investments;▪ environmental redevelopment and restoration.

Projects must provide for a labor force increase within 12 months starting from the date of project approval.
Projects presented by a network of companies (3 to 6) require a minimum investment of at least € 400 K provided by eachparticipant.
Projects presented by foreign companies providing a relevant increase in the workforce and a strategic investment of atleast € 10 MLN, in compliance with the National Smart Specialization Strategy, can access to the Fast Track procedure:▪ possibility to jump the queue;▪ special priority.
9Law 181/89 – Distressed areas (2/3)
Forms of financial subsidies:▪ non-repayable grant (up to 25% according to location and enterprise size);▪ soft loan (30% to 50%, with a duration of max 3+10 years with subsidized interest rate).
Eligible expenses:▪ land purchase (up to 10%);▪ building works, restoration and specific corporate infrastructures (up to 40% or 70% for tourism projects);▪ factory-fresh machineries, installations and equipment;▪ computer programs, patents, licenses, know-how (up to 50%);▪ consultancy (only for SMEs and up to 5%);▪ tangible and intangible assets related to the technological and digital transformation of the company according to the“Industry 4.0" model, including assets that use Artificial Intelligence, blockchain and Internet Of Things technologies.
Costs related to employees’ training projects (internal personnel, administrative and general costs) are eligible only if
coherent to the aim of the whole investment project and of the employment program.
The effective mix of the funds granted is related to the project investment type, to enterprise size and to thegeographic area. It can’t exceed 75% of the total eligible expenses.

10Law 181/89 – Distressed areas (3/3)
Funds available(€/MLN)

Submission starts

Friuli-Venezia Giulia Region

2

June 1st – 12 PM

Tuscany Region: Province of Massa Carrara

6.5

June 1st – 12 PM

Tuscany Region: Livorno, Collesalvetti, Rosignano
Marittimo

10June 1st – 12 PM

15

November 6th – 12 PM

11February 25th – 12 PM

Calls to be open in 2020

Marche Region: Fermo - Macerata

NEW

Sardinia Region: Portovesme

And until January 13th, 2021

And until April 26th, 2021

NEW

Sardinia Region: Sassari - Porto Torres

22

December 15th – 12 PM

NEWMarche and Umbria Regions – “Merloni Area”

21.6

January 20th, 2021 – 12 PM

NEW

Venice

14.6

January 18th, 2021 – 12 PM

And until March 15th, 2021

Funds available for 2021 are € 140 MLN and € 100 MLN for 2022

11

“Enterprises Safeguard” Fund forDistressed companies (1/2)
The “Enterprises Safeguard” Fund aims at acquiring minority stakes in the equity of companies in economic and financial
distress.
Main objectives of Fund:▪ support the continuity and development of business activities▪ reduce the employment impacts associated with the economic and financial crisis▪ activate private/public capital to support the implementation of restructuring plans for distressed companies▪ establish a partnership between the property/management and Invitalia aimed at creating value for all shareholders, witha shared restructuring plan
Invitalia makes equity direct investments in the distressed company or the acquiror, under the following conditions:▪ the direct acquired share (Equity) must be a minority stake;▪ the total intervention per single operation cannot exceed the amount of € 10 MLN;
▪ 5-year exit with conditions already defined in the investment transaction;▪ the investment operation is made jointly and simultaneously with:a) independent third private investors who contribute at least with 30% of the planned resources (in the case oftransactions in favor of distressed companies not pursuant to the EU guidelines);b) the proposing company that guarantees an own contribution of at least 25% for small enterprises, 40% medium
enterprises and 50% large enterprises (in the case of operations in favor distressed companies pursuant to EU
guidelines).
Invitalia, in addition or as an alternative to the acquisition of the shares, can make quasi-equity investments.

12

“Enterprises Safeguard” Fund forDistressed companies (2/2)
Main beneficiaries:
To access the Fund all the following conditions must incur:1) companies that already contacted the business crisis structure of the Ministry of Economic Development
2) companies in economic and financial crisis:a) as indicated by the EU guidelines (paragraph 2.2 of Communication 2014/C 249/01)
ORb) with prospective cash flows inadequate to regularly meet planned obligations (NOT in a state of difficulty
pursuant to paragraph 2.2 of Communication 2014/C 249/01).
3) companies that meet at least one of the following conditions:a) owners of historical trademarks of national interest;b) more than 250 employees;c) hold assets and relationships of strategic importance for the national interest, regardless of the number of
employees.
For the purposes of accessing the Fund, companies must propose a restructuring program aimed at safeguarding
employment levels and continuing the business activity.
13

2. R&D
investments

14

Innovation agreements – Smart Factory,
Agrifood, Life Science
What
Projects concerning industrial researchand experimental development
activities with eligible costs between €5 MIL and € 40 MIL (new products,
processes or their improvements), in
one of the following sectors:▪ Smart Factory;▪ Agrifood (farms included);▪ Life Science;with the development of one or more of
the following technologies:▪ ICT;▪ Nanotechnologies;▪ Advanced materials;▪ Biotechnology;▪ Advanced manufacturing andprocessing;▪ Space;▪ Technologies related to the"Challenges for society" priority(Horizon 2020 Program).

Who▪ Companies carrying out industrial
activity directed to the production of
goods or services and transport
activities;▪ Agri-food companies that mainly
perform industrial activities;▪ Companies that carry out auxiliary
activities in favor of the previous
companies;▪ Research centers▪ Farms (only for Agrifood projects).

Applying companies (except for
research centers) must have at least
two approved financial statements.

Incentives
Direct contribution to expenditureequal to a basic 26% fee, consisting of:▪ 20% granted by the Ministry + further
3% minimum (depending on theregional contribution);▪ 3% minimum granted by the Region.
A subsidized loan, if provided by theAgreement, up to the 20% of theeligible costs and expenses (a defined
variable quota can be added in relation
to the available regional financial
resources).

Projects must have a duration notexceeding 36 months.
N.B.
New funds will be soon available

15

R&D Circular Economy (1/2)
What
The aid supports the transition of
economic activities towards a circular
economy model, supporting R&D
projects aimed at a more efficient andsustainable use of resources.
Purposes:• industrial production conversion;• making production processes more
efficient in terms of time andresources used and less impacting
on the environment in terms of
reducing greenhouse gas emissions• recovering materials and minimizing
waste.

Who
Companies and research centers,
already set up in Italy with at least 2
approved and deposited balance
sheets.
Companies must operate mainly in the
manufacturing sector or in the direct
manufacturing services sector.
Joint projects between companies andresearch organizations are also eligible,
through recourse to the network
contracts.

The projects must be carried out in one
or more local units with eligible
expenses between € 500 K and € 2
MLN, with a duration ≥ 12 months and≤ 36 months.

Official application started on December 10

Incentives
Soft loan up to the 50% of the eligible
expenses to be issued only in presenceof an external loan (by Cassa Depositi
e Prestiti) at least equal to 20% of thetotal eligible expenses.
Direct contribution to expenditure:▪ Micro and small companies – 20%▪ Medium companies – 15%▪ Large companies – 10%
Total financial resources available:• € 150 MLN for subsidized loans• € 60 MLN for grants.

There are two reservations, each equal
to about half of the resources:• SME projects and networks ofcompanies;• projects to be developed in Southern
Italy.
16thR&D Circular Economy (2/2)
Eligible R&D activities:

Eligible activities are those aimed at the productive conversion of economic activities through the realization of new
products, processes or services or the considerable improvement of products, existing processes or services, thanks
to the development of Key Enabling Technologies - KETs:▪ product and process innovations in terms of efficient use of resources and waste treatment and transformation▪ prototype design and experimentation of integrated technological models aimed at strengthening the paths ofindustrial symbiosis▪ systems, tools and methodologies for the development of technologies for water supply, rational use andsanitation▪ innovative technological tools able to increase products lifetime and production cycle efficiency;▪ smart packaging that also include the use of recovered materials▪ multi-light material selection systems, in order to increase the recovery and recycling rates of small and lightmaterials.

17

R&D eligible expenses
Eligible expenses for all the incentive schemes:▪ Costs related to the employees limited to technicians, researchers and other auxiliary staff, to the extent in which they
are employed in the R&D activities covered by the project;▪ Factory-fresh tools and equipment, to the extent and for the period in which are used for the R&D project;▪ Advisory services and other services used for the R&D project, including the acquisition or licensing of search results,
patents and know-how, through a transaction carried out at normal market conditions;▪ General expenses calculated on a basis of 25% of the total eligible costs;▪ Materials used to carry out the project.
Companies must have a separate accounting system or an appropriate accounting code to keep all the transactions
relating to the subsidized project separate.
Costs incurred as part of the experimental development activities must be recorded separately from those incurred in thecontext of industrial research activities.
18

3. Small andmediumenterprises

19

Smart&Start Italia (1/2)

Projects must include expenses andeligible costs between € 100K and €1.5 MIL.

Who
Smart&Start Italia funds the creation andgrowth of innovative startups that:▪ have a strong technologicaldimension;▪ operate in the digital economy;▪ enhance search results (spin-offs
from research).

SubsidiesInterest-free loan up to 80% of thetotal investment. The percentage offunding may rise to 90% if the startup
is composed exclusively by women or
young people under the age of 36, or if
it includes at least a PhD who is
working abroad and moving to Italy.

Projects must have a duration notexceeding 24 months, starting after
the contract signing.

Applicants:▪ small-sized startups established forno more than 60 months;

Startups based in Abruzzo, Basilicata,
Calabria, Campania, Molise, Puglia,
Sardinia and Sicily, will repay only
the 70% of the loan amount.

The valuation procedure lasts only 60days.

▪ individuals or foreign citizens witha Startup Visa which are going to set
up a new company (within 30 days
from the admission);What
The aid supports the creation andgrowth of innovative startups* allover Italy.

* The requirements for innovative startups are listed
in the previous slides as defined by art. 25 of theLegislative decree 179/2012▪ foreign companies that have all therequirements and undertake toestablish an office in Italy (within thedate of the first funds request).

The loan-repayment duration is 10
years.
Startups established by no more than
12 months can use a free of charge
technical-management tutoring service
by Invitalia.
20

Smart&Start Italia (2/2)
Eligible expenses *Investment costs:▪ Factory-fresh plant, machinery and equipment▪ Hardware and software components▪ Patents, trademarks and licenses▪ Certifications, know-how and technical knowledge directly related to the production and management needs ofthe company▪ Licenses and rights relating to the use of industrial property titles or software▪ Design, development, customization, testing of IT architectural solutions and technological production systems▪ Technological specialist consultancy▪ Employees and collaborators salary costs▪ Business incubation and acceleration services▪ Investments in marketing and web marketing
Running costs:▪ Raw material▪ Services for the company's activities▪ Hosting and housing▪ Use of third parts assets (e.g. offices or laboratories rent)* Expenses are eligible only if incurred after the date of the proposal submission

21

Digital Transformation (1/2)
What
The aid supports the production
processes technological and digitaltransformation through:▪ process innovation or organization
innovation activities;▪ capex investments.
Projects must also:▪ include eligible expenses not lessthan € 50 K and not more than € 500
K;▪ start after the submission of theapplication;▪ have a duration not exceeding 18
months from the date of the granting
provision.

Who
Companies, on the date of submissionof the application, must:▪ be micro, small or medium-sized;▪ be registered in the Business
Register;▪ operate mainly or primarily in thefollowing sectors: manufacturing;
services to manufacturing, tourism
and trade;▪ have achieved in the last year an
amount of revenues at least equal to€ 100,000;▪ have at least two financial
statements approved;▪ not be subject to bankruptcy
proceedings and not be in a state ofbankruptcy, liquidation, evenvoluntary, controlled administration,
arrangement with creditors or in any
other equivalent situation according
to current legislation.

Subsidies
Benefits are granted up to 50% of thetotal eligible expenses, in the form of:▪ Grant (up to 10%);▪ Zero interest rate loan (up to 40%)
with a duration of 7 years.
Total funds available are € 100 MLN.
Applications started on December 15th

Subsides granted in relation to theseinvestments cannot be combined, withreference to the same expenses, withother public subsidies that are
configured as State aid.

22

Digital Transformation (2/2)
Eligible investments▪ Technologies coherent with the National Plan 4.0 (advanced manufacturing solutions, additive manufacturing, augmented
reality, simulation, horizontal and vertical integration, industrial internet, cloud, cybersecurity, big data and analytics);▪ Technologies related to digital technological solutions of the supply chain, focusing on:a) distribution chain management optimization;b) software implementation;c) Logistics platforms and digitald) other technologies, such as e-commerce systems, mobile and internet payment systems, fintech, electronic systems fordata exchange (Electronic data interchange - EDI), geolocation, technologies for the in-store customer experience,system integration applied to process automation, blockchain, artificial intelligence, internet of things.
Eligible capex investments:▪ Factory-fresh tangible and intangible assets▪ Consultancy services (up to 10%)Process innovation or organization innovation activities:▪ Costs for personnel involved in the innovation project▪ Factory-fresh tangible and intangible assets, just for the period in which they are used for the project▪ Consultancy services▪ General expenses and materials used for the project23

New Enterprises “Zero Interest Rate” (1/2)
What
Investment programs with eligible
expenses up to € 1.5 MLN to be
implemented by micro and small
companies in all the national territory
as follows:▪ established by no more than 36
months with investment programs up
to € 1.5 MLN of total eligible
expenses;▪ established at least from 36 months
and up to 60 months with investment
programs up to € 3 MLN of totaleligible expenses.
Program duration not less than 24
months from the financial contract
subscription.
The valuation procedure lasts only 45
days.

Who
Micro and Small Companies
established in Italy by no more than 60
months (including cooperatives),
composed, for more than half ofmembers and shares, of people aged
between 18 and 35 years old or by
women (no age limit).

Subsidies
Benefits are granted in the form of:▪ a subsidized loan with a zerointerest rate. Loan maximum lengthis 10 years.
▪ a non-repayable grant only related torunning costs (max 20% of totaleligible expenses).

Constituting companies, formed only
by natural persons, must provide for
their constitution no later than 45 days
from the notification of the admission
decision.

The subsidized amount provided cango up to 90% of the eligible expenses.
Companies must provide a coveragefor the remaining part of the investment.
Loans under the limit of € 250 K do not
require a guarantee coverage.

N.B. New rules for projects over €1.5 MLN will entry soon into force

24New Enterprises “Zero Interest Rate” (2/2)
Eligible expenses *Capex:▪ Land and building purchase (max 40 % only for tourism projects over € 1.5 MLN)
▪ Building renovation (max 30%)
▪ Machinery, plant and equipment, computer programs and services for ICT▪ Patents/licenses / trademarks▪ Specialist consulting (max 5%)
Running costs:▪ Raw material▪ Services for the company's activities▪ Hosting and housing▪ Use of third parts assets (e.g., offices or laboratories rent)
Eligible activities
Manufacturing, Tourism, Services, Trade* Expenses are eligible only if incurred after the date of the proposal submission

25

New “Sabatini Law”
What
The incentive supports investments of micro,
small and medium enterprises forpurchasing or leasing of new tangible(machinery, equipment, plants, capital goods
for productive use, hardware) and intangible
assets (digital software and technologies).

How
The incentive provide a loan issued bybanks and financial intermediaries as well asa contribution on the interest rate by the
Ministry of Economic Development. The
investment can be fully covered by bankfinancing (or leasing).

Investments must meet the following
requirements:▪ functional autonomy, as the financing ofcomponents or parts of machinery that do
not meet this requirement is not
permitted;▪ correlation to the productive activity
carried out by the enterprise.

The loan can be assisted by the "Guarantee
Fund for SMEs" up to 80% of the amount. It
must:▪ have a duration not exceeding 5 years;▪ have an amount between € 20,000 and €4 MLN;▪ be fully used to cover all eligible
investments.

Expenses related to land and buildings,
regenerated goods, as well as to "fixed
assets in progress and advanced payments"
are not eligible.

Subsidies can be disbursed in uniquesolution if the total investment is lower than€ 200 K.

Aid
The aid consist in a contribution equal to thetotal amount of interests to be paid for theloan, accordingly to the type of investment:▪ 2.75% interest rate for the purchase/leaseof new tangible or intangible assets for
productive use;
▪ 3.575% interest rate for thepurchase/lease of Industry 4.0 assets (bigdata, cloud computing, ultra broadband,
cybersecurity, advanced robotics andmechatronics, augmented reality, 4D
manufacturing, RFID and waste tracking
and weighing systems);▪ 5.5% interest rate for the purchase/leaseof new tangible or intangible assets for
productive use in Southern Italy (Abruzzo,
Basilicata, Calabria, Campania, Molise,
Apulia, Sardinia e Sicily);▪ 3.58% interest rate for the purchase/leaseof new material goods with low
26environmental impact.

Cultura crea (1/2)
What
The incentive supports the set up and thegrowth of business and non-profit initiatives
within the cultural, creative and tourism
sectors, aiming at the cultural resourcesenhancement in the regions of Basilicata,
Calabria, Campania, Puglia and Sicily.
Three are the main intervention areas:
1) Newly set up companies: investments
up to € 400K introducing innovation
within the economy of knowledge,
conservation, fruition and managementof cultural heritage;2) Existing companies: investments up to€ 500K for the valorization of culturaland natural attractors: promotion,communication, tourism and cultural
fruition of cultural heritage;3) Social enterprises: investments up to €400K for activities producing social
effects and public goods not producedby the market.

Who
Companies defined as follows within the
territories of Basilicata, Campania, Calabria,
Puglia and Sicily:How
The aid consists of the following incentives:
1) Newly set up companies: 40% soft
loan + 40% grant;

1) Newly set up companies: new micro,
small and medium enterprises
established by no more than 36 months(no specific areas defined);

2) Existing companies: 60% soft loan +20% grant;2) Existing companies: micro, small andmedium enterprises existing for morethan 36 months (only specificmunicipalities of cultural attraction,
excluding Sicily);Soft loan is interest-free and has a durationof 8 years, plus a 1 year grace period, anddoesn’t need guarantee coverage.

3) Social enterprises: non-profit
organizations (only specificmunicipalities of cultural attraction,
including Sicily).

3) Social enterprises: 80% grant.

Projects must be concluded within 12
months since the contract signing.
Subsidized companies must provide theremaining 20% of the total eligible
investment using own resources.

27

Cultura crea (2/2)

Eligible expenses
Investment costs (for enterprise type n° 1 - 2 - 3):▪ machinery, plant, equipment, furnishings and mobile units (factory-fresh);▪ software, patents, licenses and trademarks, certifications, know-how, technical knowledge (evenunpatented);
Running costs (for enterprise type n° 1 - 2) up to the 20% of the total eligible expenses:▪ qualified internal staff hired with a permanent contract and working within the operational area (nomanagers);▪ ICT services;▪ external specialistic consultancy (from Universities, R&D centers or enterprises/people with strong
competences in the sector).

28

4. Fiscal benefits

29

Tax for tangible/intangible assets
INCENTIVESELIGIBILITY▪ Companies investing in tangible and intangible capital
goods accordingly to the Industry 4.0 national strategy,
or in ‘ordinary’ tangible and intangible assets. These tax
credits are already available since November 16th 2020.

CUMULATION▪ The tax credit can be combined with other incentives
related to the same investment, only if this cumulation
does not overcome the investment total value

Investments (€)

Tax credit (%)

Industry 4.0 tangible assets *< € 2.5 MLN

50% (Y2021) - 40% (Y2022)≥ € 2.5 MLN ≤ € 10 MLN

30% (Y2021) - 20% (Y2022)> € 10 MLN ≤ € 20 MLN

10% (Y2021 - Y2022)

Industry 4.0 intangible assets *≤ € 1 MLN

20%

‘Ordinary’ tangible assets **TIMING▪ Investments completed before December 31st, 2022
▪ Investments for which the company make the firstpayment (at least 20%) before December 31st, 2022.
Assets must be delivered before June 30th, 2023

≤ € 2 MLN

10% (Y2021) - 6% (Y2022)‘Ordinary’ intangible assets **≤ € 2 MLN

10% (Y2021) - 6% (Y2022)* Compensation** Compensation

3 years

1 years

N.B.
✓ Investments that worth more than € 300 K per individual asset require a technical evaluation by an expert or engineer;✓ Companies with revenues < €5 MLN can compensate the tax credit in just 1 year;✓ The tax credit for ‘Ordinary’ tangible and intangible assets can be used in the same year of maturation.

30

Tax credits for R&D and innovation
INCENTIVESELIGIBILITY▪ Companies of all sizes investing in research and development,
ecological transition, technological innovation 4.0 and in other
innovative activities. These tax credits are valid for 2021-2022

Eligible activities

Investments (€) **Tax credit (%) *Fundamental research, Industrial researchand Experimental development≤ € 4 MLN20%

≤ € 3 MLN

25% (large enterprise)
35% (medium enterprise)
45% (small enterprise)≤ € 2 MLN10%

≤ € 2 MLN15%

≤ € 2 MLN

10%ELIGIBLE EXPENSES▪ Personnel;▪ Depreciation charges, financial or simple lease payments andother expenses relating to tangible assets and software used in
R&D projects (up to 30% of the expenses related to personnel);▪ Research contracts;▪ Depreciation charges relating to the purchase from third parties,
also under license of use, of industrial property rights relating toan industrial or biotechnological invention, up to a maximum of €1 MLN;▪ Consultancy (up to 20% of the expenses related to thepersonnel);▪ Materials for R&D projects (up to 30% of the expenses related topersonnel or research contracts).
The effective payment of the eligible expenses must result from a
specific certification issued by a company’s statutory auditor. For
companies not legally obliged to audit statutory accounts, the costs
incurred are recognized for an amount not exceeding € 5,000.

Fundamental research, Industrial researchand Experimental development
in Southern Regions(Abruzzo, Basilicata, Calabria,
Campania, Molise, Puglia, Sardegna and Sicily)

Technological innovation(design, implementation, introduction)

Technological innovation “Industry 4.0” andgreen economy(design, implementation, introduction)

Design - Aesthetic conception(conception and realization of new products andsamples within the textile and fashion, footwear,
eyewear, goldsmith, furniture and furnishing andceramic sectors)* Compensation

3 years** net of other grants or contributions for any
reason received for the same eligible expenses

31

Tax credit for South Italy
Tax credit and fiscal benefit for Special
Economic Zones (SEZs)
TAX CREDIT* FOR SOUTH ITALYTAX CREDIT* and FISCAL BENFIT FOR SEZs

▪ Companies investing in tangible assets in Basilicata,
Calabria, Campania, Puglia, Sicily, Molise, Sardinia andAbruzzo until the end of 2022 can benefit of a 50% tax
credit.

▪ Companies investing in tangible assets inside Special
Economic Zones (SEZs) of Basilicata, Calabria,
Campania, Puglia, Sicily (seaports, inland ports, airports,
production areas, logistic platforms and intermodal freightvillages) until the end of 2022

▪ Newly established companies can benefit from a 50%
tax relief (IRES) for 6 years

Enterprise size

Investments (€)

Tax credit (%)

Enterprise size

Investments (€)

Tax credit (%)

Small≤ € 1.5 MLN

20%

Small

≤ € 3 MLN

45%

Medium≤ € 5 MLN

15%

Medium≤ € 10 MLN

35%

Large

≤ € 15 MLN

10%

Large

≤ € 15 MLN

25%* N.B. These tax credits cannot be combined with other state aids related to the same costs.

32

“Industry 4.0 training” Tax Credit

ELIGIBILITY▪ Companies of all sizes investing in training of employees
and entrepreneurs for the acquisition or consolidation ofskills in technologies relevant to the Industry 4.0 national
plan▪ It applies to eligible expenses incurred in 2021-2022:✓ Costs of the training hours/days, incurred during theperiod 2020-2022 and to the maximum limit of €300,000 euros;✓ Employees participating as teacher or tutor in the
training activities, within the limit of 30% of the total
annual remuneration.

INCENTIVES
FiscalEnterprise size Investments (€)
deductibility (%) *Small≤ € 300 K

50%

Medium≤ € 250 K

40%

Large

≤ € 250 K

30%* The benefit can increase up to 60% for training activities related to less advantaged orseverely disadvantaged workers▪ Access to Tax credit is automatic in the preparation offinancial statements.

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Other fiscal benefits
PATENT BOX

ACE – Allowance for corporate equity▪ The patent box benefit consists in a partial tax
deduction of 50% for incomes arising from direct use or
licensing of qualified intangible assets:✓ property rights;✓ industrial patents;✓ Trademarks;✓ designs and models, as well as processes, formulas
and information relating to experiences acquired inlegally protected industrial, commercial or scientificfields▪ The benefit (aka Notional Interest Deduction - NID) aims at
promoting the recapitalization of undertakings and to mitigate
the different tax treatment applied to companies funded withdebt and others funded with equity.

▪ Fiscal deductibility on IRPEF (personal income tax) or
IRES (tax on company revenues)▪ Legal entities with a business income must be able todemonstrate that their income is from the use ofintangible assets▪ Access to the benefit can be automatic in the
preparation of financial statements or made through afiscal ruling procedure with the National Revenue
Agency. The company can benefit the incentive for a 5years time period.

▪ The qualifying equity increases may be inclusive of equity
contributions, retained earnings (except for profits allocated toa non-disposable reserve), share-holders credits’ waiver.

▪ The benefit entails a notional deduction from corporate
income taxable base on company revenue (IRES) equal to
the net increase in the “new equity” employed in the company,
multiplied by a rate yearly determined annually (1.3% for FY2020).
▪ Under Italian legislation, unused ACE basis may be:✓ carried forward in future fiscal years;✓ transferred to the fiscal unit, wherever the company is partof a tax group;✓ transformed into a tax credit to be offset against Regional
Tax on Production Activities (IRAP) payments, made in five
installments of the same amount.

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Investments in startups

WHAT▪ Tax deduction on the investor’s taxable income for
IRPEF (personal income tax) or IRES (tax on company
revenues)

INCENTIVES

Fiscal subject

Amount invested
Fiscaldeductibility (%)
per year (€)

Natural persons

up to € 100 K

50%▪ Companies or natural persons investing directly or
indirectly in one or more innovative startups or SMEs

Natural persons≥ 100 K ≤ 1 MLN

30%▪ The benefit applies to contributions in cash in thecompany share capital and in the reserves of innovative
startups and SMEs or of companies investing mainly inthe capital of innovative startups or SMEs

Legal persons

up to € 1.8 MLN

30%

ELIGIBILITY▪ The investment must be kept for at least 3 years

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5. Employment
bonuses36Subsidized income tax
Individual income tax for new residents (Impats)▪ Workers who:▪ are already graduated or got a degree abroad in the last 24 months (work and study period can’t be cumulated);▪ have been resident abroad for the 2 previous tax periods and not on occasional basis;▪ are employed in Italy and become tax-residents: working for min. 183 days/year (184 for leap years) for at least 2 years;
can benefit of an exemption on the income tax for 5 years* equal to the 70% or 90% if residents in Southern regions (Abruzzo,
Apulia, Basilicata, Calabria, Campania, Molise, Sardinia and Sicily).
▪ Teachers and researchers that:▪ in possession of a university degree;▪ have been residing abroad not on occasional basis;▪ have carried out recorded teaching or research activities abroad for the 2 previous tax periods;▪ become tax-residents in Italy: working for min. 183 days/year (184 for leap years) for at least 2 years;▪ keep working as teachers/researchers
can receive an exemption on the income tax for 6 years** equal to the 90%.
* the exemption can be extended up to 10 years based on the number of dependent children and the acquisition of a residential property. If the worker does
not have dependent children but acquired a residential property the fiscal exemption is reduced to 50% for the extended period.
** the exemption can be extended from 8 to 13 years based on the number of dependent children and the acquisition of a residential property.

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Employment bonuses (1/3)
Worker category
People residing inSouth Italy (Abruzzo,
Apulia, Basilicata,
Calabria, Campania,
Molise, Sardinia andSicily)People under 35(everywhere in Italy)

Excellences

Young parents under 35
years old

Condition▪ Never been employed with apermanent contract▪ Unemployed for at least 6 months

Type of contract

Expected amount /durationBonus(reduction in social security
contribution to be paid)▪ The relief applies to the %▪ Permanent contractsof the employer's▪ Apprenticeship contracts
contribution without▪ 30% until Y 2025
▪ Conversions from fixedidentifying a maximum▪ 20% for YY 2026-2027
term/apprenticeship to permanentmonthly ceiling▪ 10% for YY 2028-2029
contracts (unemployment status not▪ The relief is cumulativerequired)with other aids
Permanent contracts or conversions
from fixed-term to permanent contracts
for years 2021 - 2022

€ 6,000 per year
(max 48 months)

100%▪ Under 30 graduated with honors(within June 30th, 2019)
Permanent contracts or conversions▪ Young PhD (with titles obtained withinfrom fixed-term to permanent contracts
June 30th, 2019 at maximum age of34)€ 8,000(max 12 months)

n.a.

€ 5,000 one-timen.a.

▪ Never been occupied with apermanent contract and hired in 2020

Young parents must be found on theregister of young parents on INPS
websitePermanent contracts

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Employment bonuses (2/3)
Worker category

Condition▪ Under 30 recruited in 2020 working as
apprentices
Apprentices and▪ Students, within 6 months from the end
work-related learningof secondary school, after the conclusion
experiencesof work-related learning experiences withthe same employer
Unemployment
income holders(NASPI)

Unemployment status▪ Redundancy fund holders
Redundancy fund
▪ Redundancy fund holders for at least 3
holders (CIG-CIGS)
months“Citizenship income”
holders“Citizenship income” holders

Type of contract

Expected amount /duration

Permanent contracts€ 3,000 per year
(max 36 months)Bonus(reduction in social security
contribution to be paid)

100%

Full-time permanent contracts

Depending on the amount of 20% (on monthly allowance notyet received by the worker)
the unemployment benefit▪ Permanent and fixed term
contracts▪ Full-time permanent contracts▪ CIGS: 50% (on monthly€ 4,030 per year
allowance not yet received▪ 18 months for permanentby the worker)
contracts▪ CIG: 10% (on monthly▪ 12 months for fixed termallowance not yet received
contractsby the worker)▪ Full-time permanent contracts▪ Apprenticeship contracts€ 780 per month(max 18 months, within thelimit of the monthly amount of
Citizenship income received
by the worker)

n.a.

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Employment bonuses (3/3)
Worker category

Condition

Type of contract▪ Permanent contracts orconversions from fixed-term topermanent contracts▪ Fixed-term contracts

People over 50

Unemployed for at least 12 months

Women of any age▪ Unemployed for at least 6 months, living▪
in Southern regions or occupied in
sectors characterized by a strong gendergap▪ Unemployed for at least 24 months(everywhere in Italy)▪
▪ New hiring must represent an increase in
the workforce of the company

NEET(Not in Education,
Employment orTraining)

Under 30 participating to the “Garanzia
giovani” program unemployed for at least 6monthsPermanent contracts orconversions from fixed-term topermanent contracts in 20212022

Expected amount /duration▪ 18 months▪ 12 monthsBonus(reduction in social security
contribution to be paid)

▪ 50%
▪ 50%

▪ € 6,000/year for 18 months▪ 100%▪ € 6,000 for max 12 months

Fixed-term contracts in 20212022

Permanent or apprenticeships
contracts€ 8,060 per year
(max 12 months)

100%

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THANK YOU