Tax Incentive for SME Listing: Overview and Process

The official portal of the Ministry of Entrepreneurship and Made in Italy has issued guidelines on how to obtain a tax incentive for listing small and medium-sized enterprises (SMEs), aimed at offsetting consultancy expenses incurred in 2024 for listing on regulated markets. The deadline to apply is March 31, 2025. Let's delve into the details.

What is the Tax Credit for SME Listing?

This tax credit aims to assist small and medium-sized enterprises opting to join regulated markets or multilateral trading systems in EU or EEA member states. It was introduced through the 2018 Budget Act (Article 1, sections 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, laying down the application process and eligibility criteria for this credit.

How Does It Operate?

As per the provisions of the 2023 Budget Act, small and medium-sized enterprises embarking on a listing process on regulated markets or EU/EEA multilateral trading systems, and receiving approval for listing, can claim a tax credit covering 50% of consultancy expenses incurred, capped at €500,000.

Furthermore, the "Extension Decree," converted into Law No. 18 dated February 23, 2024, extended the scheme until December 31, 2024 (including consultancy costs accrued by that date for listings in 2024). Consequently, companies are eligible for a 50% tax credit, up to a maximum of €500,000, to cover various consultancy services:

• Services facilitating the initiation and preparation of the listing process, such as setting up a management control system, aiding in business plan development, and providing support throughout the listing preparation stages for the target market.
• Services rendered during the listing approval phase to confirm compliance with listing prerequisites and subsequent market presence.
• Services essential for share placement among investors.
• Consultations on financial report review and preparation, including financial due diligence.
• Assistance in drafting listing documents, prospectuses, or documents for investor placement.
• Guidance on legal, tax, and contractual matters pertaining to the listing process, encompassing document analysis, legal and tax due diligence, and corporate governance issues.
• Communication services ensuring optimal company visibility, such as press releases, interviews, events, and presentations to the financial community.

Application Procedure

Applications can be lodged from October 1, 2024, to March 31, 2025, for listings conducted in 2024 (covering consultancy expenses up to December 31, 2024). Applications must be submitted via email to: dgind.div05@pec.mimit.gov.it .