Legal development

Accounting treatment of renovation / refurbishment works tax credits in Italy

Insight Hero Image

    The new guidelines from the Bank of Italy, Consob and Ivass emphasise the need for buyers of tax credits to carefully analyse their business model when selecting the appropriate accounting treatment. An interesting aspect is related to the relevance attributed to the buyer's tax capacity to offset such tax receivable directly against their tax liabilities rather than selling them on the market. If the buyer has tax capacity, it seems easier for them to keep treating the tax receivables as “held to collect” without adopting fair value accounting, as discussed in our alert which you can find in Italian at the following link: Trattamento contabile dei crediti d'imposta per l'edilizia

    The information provided is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to.
    Readers should take legal advice before applying it to specific issues or transactions.


    Stay ahead with our business insights, updates and podcasts

    Sign-up to select your areas of interest