Italy oversees delivery of decree worth €25 billion to manage COVID-19

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Italy oversees delivery of decree worth €25 billion to manage COVID-19

Sponsored by

sponsored-firms-hager.png
Italy looks to bounce back after flattening the curve

Gian Luca Nieddu and Barbara Scampuddu of Hager & Partners outline the measures set out by Italy to assist businesses and taxpayers manage the economic impact caused by the COVID-19 outbreak.

On March 16 2020, Italy’s government approved a decree worth €25 billion ($27 billion) to support the Italian health system, companies, entrepreneurs and professionals during the COVID-19 outbreak. The decree is immediately effective and provides €3.5 billion to assist the healthcare system and €10 billion to support employment and workers.



The new decree laid out new measures ranging from suspending tax payments to helping cover layoffs to mortgage relief. It is estimated that the decree should activate about €340 billion in financing: the measures outlined include state underwriting for a portion of companies’ property rental costs, subsidies for the self-employed and a nine-month mortgage relief plan for self-employed and other non-salaried workers who have seen their earnings fall by more than a third during the coronavirus crisis. 



Provisions include the strengthening of the state-guaranteed fund for small and medium enterprises (SMEs) with an additional €1 billion: this fund will raise a maximum guarantee for a single company equal to €5 million.



Moreover, for SMEs’ enterprises, credit lines are guaranteed and payments related to mortgages and loans are suspended until September 30 2020. For larger companies, public company CDP (Cassa Depositi e Prestiti S.p.A.) will guarantee, with €500 million, up to €10 billion loans that banks will be able to grant to companies affected by the ongoing pandemic.



Other measures include:

  • All firing procedures begun after February 23 2020 are suspended;

  • Families can apply for permission to suspend their mortgage payments if business shutdowns caused by the pandemic threaten their livelihoods;

  • For self-employed or seasonal workers, the government will provide a one-off contribution;

  • Families with children will be helped with longer parental leaves (equal to 15 days) and a so-called ‘babysitter voucher’ equal to €600;

  • In March and April, people caring for someone with disabilities are entitled to take up to 12 days' leave a month instead of three;

  • Tax incentives for non-performing loans (NPLs) selling are granted;

  • Employees can claim time under quarantine as sick leave.


In addition, companies with a turnover lower than €2 million will benefit from the suspension of withholding payments of contributions, insurance premiums and VAT until May 31 2020.



Gian Luca Nieddu 

T: +39 02 7780711

E: gianluca.nieddu@hager-partners.it



Barbara Scampuddu 

T: +39 02 7780711

E: barbara.scampuddu@hager-partners.it



more across site & shared bottom lb ros

More from across our site

Canadian Prime Minister Mark Carney and US President Donald Trump have agreed that the countries will look to conclude a deal by July 21, 2025
The firm’s lack of transparency regarding its tax leaks scandal should see the ban extended beyond June 30, senators Deborah O’Neill and Barbara Pocock tell ITR
Despite posing significant administrative hurdles, digital services taxes remain ‘the best way forward’ for emerging economies, says Neil Kelley, COO of Ascoria
A ‘joint understanding’ among G7 countries that ‘defends American interests’ is set to be announced, Scott Bessent claimed
The ‘big four’ firm’s inaugural annual report unveiled a sharp drop in profits for 2024; in other news, Baker McKenzie and Perkins Coie expanded their US tax benches
Representatives from the two countries focused on TP as they met this week to evaluate progress under a previously signed agreement – it is understood
The UK accountancy firm’s transfer pricing lead tells ITR about his expat lifestyle, taking risks, and what makes tax cool
Dolphin Drilling intends to discuss the final liability amount and manner of settlement with HM Revenue and Customs
Winning the case against the 20% VAT imposition was always going to be an uphill challenge for the claimants, UK tax advisers argue
A ‘paradigm shift’ in Chile’s tax enforcement requires compliance architecture built on proactive governance, strategic documentation and active monitoring of judicial developments
Gift this article