Tax Benefit for Registering Small and Medium Companies (SMEs): What It Is and How It Functions

The guidelines for accessing the tax benefit for registering small and medium-sized companies (SMEs) have been published on the Ministry of Entrepreneurship and Made in Italy website. This benefit aims to refund consultancy expenses incurred in 2024 for registration on regulated markets. The deadline for applications is March 31, 2025. Let's delve into the details.

What is the SME Registration Tax Benefit?

This tax benefit is designed to assist small and medium-sized companies that opt to join a regulated market or multilateral trading systems within a European Union or European Economic Area Member State. It was introduced through the 2018 Budget Act (Article 1, points 89-92 of Act No. 205/2017) and is governed by the decree issued on April 23, 2018 by the Ministry of Economic Development, in collaboration with the Ministry of Economy and Finance, which outlines the process and criteria for awarding this benefit.

How It Operates

According to the 2023 Budget Act, small and medium-sized companies that start a registration process on a regulated market or in EU or EEA multilateral trading systems and receive approval for registration can apply for a tax benefit covering 50% of incurred consultancy expenses, up to a maximum of €500,000.

Moreover, the "Extension Decree," converted into Law No. 18 dated February 23, 2024, extended this provision until December 31, 2024 (including consultancy costs incurred by that date for a 2024 registration). Consequently, companies can request a 50% tax benefit, capped at €500,000. This benefit can be utilized for various consultancy services:

• Services aimed at commencing the registration process and preparing for it, such as implementing and configuring a management control system, aiding in business plan development, and providing support throughout the preparation stages for registration in the target market.
• Services rendered during the registration approval phase to verify a company's compliance with listing requirements and subsequent market presence.
• Services needed for share placement among investors.
• Consultations for financial reporting review and report preparation, including financial due diligence.
• Assistance in compiling registration documents and prospectus or documents for investor placement.
• Guidance on legal, tax, and contractual matters related to the registration process, encompassing analysis of information documents, legal and tax due diligence, and corporate governance concerns.
• Communication services for heightened company visibility, like press releases, interviews, events, and financial community presentations.

Application Process

Applications can be submitted from October 1, 2024, to March 31, 2025, for registrations completed in 2024 (covering consultancy costs incurred until December 31, 2024). Applications must be sent via email to: dgind.div05@pec.mimit.gov.it.