New tax credits are available in Italy following the enactment of a law which includes benefits for those investing in advertising campaigns.
The 2017 corrective measures (Decree no. 50 of 24 April 2017) introduced a 75% tax credit on the incremental value of investments in certain forms of advertising in Italy by companies, independent workers, and non-commercial entities. The advertising campaigns must be:
in the daily press or periodical publications published on online channels broadcast on analogue or digital local television or radio stations. The tax credit amount is increased to 90% for micro-enterprises, small and medium enterprises and innovative start-ups.
These tax credits can be applied for this year, as they are recognised for incremental advertising investments made in 2018, provided that their value exceeds the amounts spent on similar advertising campaigns via the same channels during 2017 by 1%.
Also, for a first application, tax payers who advertised in daily press or periodicals, including online channels, from June 24 to December 31 in 2017, can claim the tax benefit provided their 2017 spend was 1% greater than in 2016. However, this doesn't apply to advertising spend with local analogue and digital television and radio broadcasters.
As an example, looking at a company which spent 15,000 on eligible advertising during 2017, to qualify for the tax credit, the company's spend during 2018 must be at least 15,150 (15,000 + 1%).
Assuming the company's advertising expenditure during 2018 totals 25,000, it will be due a 7,500 tax credit (75% of 25,000 less 15,000 spend). If the company happens to be an innovative start-up, micro-enterprise or a small or medium enterprise, then it could claim 90% rather than 75%, which would give a tax credit of 9,000.
Such tax credits must be applied for electronically via the relevant Tax Authority's platform, using the form provided by the Authority itself, within a time frame (which could be from 1 March to 31 March of each year) specifying:
details identifying the applicant tax payer the overall cost for advertising investments made, or to be made during the year the overall cost for investments made in respect of similar media during the previous year ('similar media' refers to the press on the one hand, and radio-television broadcasters on the other; not a single newspaper or single broadcaster) details of the increase in investments for each media channel...