Fiscal Benefit to Purchase New Machineries

A great chance is given to companies who want to invest and improve their machineries in order to reach a production process with a complete automatization.

The 2017 budget law confirm the “super amortization” process, that gives the possibility to amortize at 140% the new capital goods that Italian companies buy.

In addition to the “super amortization” has also introduced the “hyper amortization”, a process that gives the possibility to amortize at 250% the new capital goods that Italian companies buy that follows some conditions. Both benefits are a multiple amortization process of 140%/250% of the real value of the investment in machineries, tools and software.

An example of “hyper amortization” could make it more clear: a company that purchase a new machinery that costs 100.000€ and amortized it in 10 years normally deduct from tax return 10.000€ per year, but with hyper amortization benefit can deduct 25.000€ with a relevat tax saving.

Basically the only condition to allow the “super amortization” of 140% is that the machineries and/or tools are new and aren’t eligible cars and real estate assets.

Relating with lease contracts the benefit is addressed only to the lessee and not to the lessor.

The “hyper amortization” of 250% conditions are heavier and consists, in additions to the above mentioned for “super amortization”, in assets acquired for the technological transformation of enterprises (relating to plant, equipment, machinery and tool whose functioning is controlled by IT Systems or managed through appropriate sensors and actuators and interconnected with a factory’s computer systems; systems for the quality assurance and sustainability; devices for man machine interaction and improved ergonomics and safety in the workplace).

Even this benefit, in case of lease contracts, is addressed only to the lessee and not to the lessor.

The costs of intangible assets, such as software, related to technological transformation of enterprises are not eligible of “hyper amortization”, anyway those intangible assets can benefit of 140% deduction of “super amortization”.

The eligible period to purchase the assets is for both from 1 January 2017 to 31 December 2017 (or 30 June 2018, provided the relevant purchase order is made and at least 20% of the purchase price actually is paid by 31 December 2017).

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Federico Rossi's picture

Federico Rossi has been focused on tax and administrative matters mainly about commercial companies, automotive, real estate and metal processing clients, Mr. Rossi has also focused in individual repatriation fiscal benefit.
Other practice included m&a, tax planning, corprorate formation and tax compliance.