IMPACT OF FISCAL PACKAGE ON CAPITAL COMPANIES IN TUSCANY – THE CUMULATIVE EFFECT OF IRES (lower levy), ACE (higher levy) AND HYPER-AMORTIZATION (lower levy)
The 2017 fiscal package is an expansionary policy, designed in particular to promote investment by easing fiscal pressure on businesses (through a reduction of the corporate income tax, IRES), and through the introduction of facilitation provisions (i.e., hyper-amortization). These measures are partly counterbalanced by the reduction of the pre-existing tax breaks on equity capital (the Economic Growth Aid, ACE). The table below shows the cumulative effect of the intervention only for capital companies. The companies covered by the measures, being profitable (84% of Tuscan capital companies), are around 44 thousand, and have a IRES revenue of 1.3 milliard. For about half of these (43%), the benefits of the manoeuvre are to some extent counterbalanced by the reduction of ACE. A 3% of companies benefit from hyper-amortization by an average amount of 13 thousand Euros.
Note: IRES calculation on capital companies’ revenue. The effect of the ACE measures is computed comparing the 2016 regulations (ACE 4.75%, IRES 27.5%) to the 2017 regulations (ACE 2.3%, IRES 24%).
Source: 2011, 2012 and 2013 budgets
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