Italy's "decreto rilancio" (relaunch decree) is now law but has seen some changes in the Senate.
Italy's relaunch decree is now law / Gtres
Italy's relaunch decree is now law / Gtres

After conversion to the Senate, Italy's relaunch decree is now law. There have been some changes in the planned measures, with the official and final text pending publication in the Italian state bulletin, Gazzetta, from the ecobonus 110 to non-refundable contributions.

The Italian government has pledged almost 55 billion euros towards a package of measures to help rebuild Italy as it slowly exits the coronavirus crisis, about twice the amount of a normal budget law.

Let's have a look at a summary of the key measures in the 'Decreto Rilancio', after the most recent changes made in its passage through Parliament.

Rental bonuses for businesses

This measure includes the deduction of 60% on rentals intended for the carrying out of industrial, commercial, craft, agricultural, tourist activities, or the habitual and professional exercise of self-employment.

Discounts on utility bills

There are discounts on electricity, gas and water bills and an allocation of 600 million euros for electricity bills in May, June and July for small production and commercial activities.

Bonus for housekeepers and carers

Domestic workers with contracts lasting more than 10 hours per week are awarded a bonus of 500 euros per month. 

Bonus for self-employed workers

Freelancers, seasonal workers and self-employed workers will be given a 600 euro bonus, while those in the most precarious situations will also be eligible to claim up to 1,000 euros if they can demonstrate a 33% drop in income in the second two months of 2020 compared to the second two months of 2019.

110% Ecobonus

This is one of the most anticipated and discussed measures: a 110% bonus for energy efficiency work from 1st July 2020 until 31st December 2021.

Holiday bonus

This measure includes a bonus of up to 500 euros for holiday spending in Italian accommodation from 1st July to 31st December 2020.

Car Ecobonus 

The car ecobonus is an incentive of up to 3,500 euros for those who buy a car in the Euro 6 emissions tier and scrap a car that is at least 10 years old. This amount is halved if there is no scrapping of vehicles involved.

Smart working 

Smart working for civil servants is extended until 31st December. Private-sector workers with a child under the age of 14 are also entitled to take advantage of agile working until 31st July 2020, even in the absence of individual agreements.

Blocking layoffs

The halt in job redundancies that was already introduced in the previous Cura Italia decree has now been extended for 3 more months compared to the initial 2 months, meaning that the total freeze period is 5 months.

Babysitter bonus and parental leave

With schools closed until September, working parents can claim up to 1,200 euros towards the cost of child care which can also be used towards summer camps. Healthcare personnel and low income families are entitled to a total bonus of 2,000 euros. Parents with children under 12 can also ask for extra family leave paid at 50 percent.

Suspension of tax payments

Payments of VAT withholdings, social security and Inail contributions, tax returns, tax collection records and goods notices see suspensions until 16th September.

Zero VAT for gel, face masks and personal protective equipment

This year there will be no VAT on masks, disinfectant gels and personal protective equipment against the virus. From 2021 there will be 5% VAT reduction.

Emergency income 

An economic allowance of between 400 and 800 euros for three months is introduced in the emergency income boost for those who have no other form of social support.

Non-repayable grant

Non-repayable grants are available for small businesses and VAT registered owners with a turnover in April 2020 that was less than two thirds of the amount of the turnover of the corresponding month of April 2019.

IRAP payment exemption

Almost all businesses will be exempt from part of their regional corporation tax (IRAP) this year. The relaunch decree introduces the exemption from the payment of the balance of IRAP due for 2019 and of the first instalment, equal to 40%, of the advance payment of IRAP due for 2020 for companies and self-employed workers with revenues/revenues not exceeding 250 million euros in the tax period prior to the date of entry into force of the Decree Law.