The forfeiture of the right to enjoy the benefits derives from the need to give the investment a minimum duration period.
The taxpayer loses the right even due to reasons beyond their control
In a recent response to an inquiry, No. 390 of 2023, the Revenue Agency provides clarifications regarding the regulations that provide for the deduction of investments made by individuals in start-ups and innovative SMEs.
How does the deduction work?
The taxpayer is entitled to deduct up to 50% of the amount invested in the capital share of one or more innovative start-ups, directly or through collective investment undertakings predominantly investing in innovative start-ups, from the gross income tax of individuals. But that’s not all. The deduction also applies to investments in innovative small and medium-sized enterprises (“innovative SMEs”) in compliance with the conditions and limits set by the Guidelines on State aid for risk finance investments.
Under what Conditions can one Benefit from the Deduction?
As emphasized by the Agency, the deductions can be claimed under the condition that the investment is held for at least three years; any sale, even partial, of the investment before the end of this period results in the loss of the benefit, and the taxpayer must repay the deducted amount, along with legal interest.
In this sense, the forfeiture occurs if the so-called “holding period,” the minimum period of investment retention, is not respected.
When does the right to Deduction not expire?
In particular, the Agency notes that the forfeiture of the benefit does not occur in cases of transfers by gift or due to the death of the taxpayer, as well as transfers resulting from extraordinary operations.
In conclusion, it can be observed that the forfeiture of the right to benefit applies in all cases where, regardless of the investor’s will, the investment does not last for at least three years, except for specific cases where the requirement of the holding period is not necessary (such as transfers due to death) or must be verified based on the date on which the cause of the investor made the investment (such as transfers of shares by a gift deed or as a result of extraordinary operations).
