Italian Law: Emergency Legislation for COVID-19


1. Introduction

The current economic situation due to the epidemiological emergency from Coronavirus Disease 2019 (COVID-19) (the COVID-19 Emergency) led the Italian government to issue on May 19, 2020 the Decree-Law no. 34/2020 (so called Decreto Rilancio) (the Decree). This GT Alert provides a summary of some of the main legislative measures contained in the Decree specifically aimed at supporting Italian companies.

2. Main legislative measures concerning the financial support to Italian companies

The legislative provisions concerning financial support to Italian companies are contained in Chapter 1 of Title 2 of the Decree, entitled “Support for companies and the economy”.

2.1 Non-repayable grant1

The main features of the non-repayable grant (contributo a fondo perduto) are the following:

2.2 Tax credit on contribution in cash in execution of a capital increase3

A Tax Credit (credito di imposta)4 is granted for contributions in cash (conferimenti in denaro) to companies (including cooperatives and European companies referred to in the Regulation no. 2157/2001/EC) in execution of a capital increase. The main features are:

2.3 Subscription of financial instruments by SME’s Capital Fund5

The SME’s Capital Fund is aimed at subscribing bonds or debt securities issued by companies (Financial Instruments) with maturity of six years.

2.4 Tax credit on losses exceeding the net asset (patrimonio netto)7

A tax credit is granted on losses exceeding the net asset. The main features are:

2.5 Pool of Assets by Cassa Depositi e Prestiti for financings of companies generating revenues higher than € 50 million per year8

Cassa Depositi e Prestiti S.p.A. (CDP) is authorized to create a pool of assets (patrimonio destinato) referred to in Article 2447-bis of the Italian Civil Code (so called Patrimonio Rilancio) (the CDP Pool of Assets) made of contributions of assets by the Italian Ministry of Economy and Finance. In return for these contributions, CDP will issue participating financial instruments in favor of the Italian Ministry of the Economy and Finance.

2.6 Refinancing of facilitated loan for innovative start-ups9

Additional resources equal to Euro 100 million for the year 2020 are allocated to the refinancing of the facilitated loans (finanziamenti agevolati) - pursuant to the Decree of the Minister of Economic Development no. 264 of Nov. 13, 2014 (the Ministerial Decree) - to innovative start-ups in the form of facilitated loans (the Facilitated Loans).

The Decree also provides a series of tax incentives in the form of tax deductions for natural persons investing in the corporate capital of an innovative start-up10.


1Article 25 of the Decree.

2Please note that to properly determine the amount of the remuneration or revenues referred to in paragraph 2.1, reference is made to the date on which the sale of goods and services was carried out.

3Article 26 of the Decree.

4The tax credit is granted up to a maximum of € 2 billion for year 2021

5Article 26 of the Decree.

6The capital increase not lower than € 250,000.00

7Article 26 of the Decree.

8Article 27 of the Decree.

9Article 38 of the Decree.

10Article 38 of the Decree.


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National Law Review, Volumess X, Number 148