Once again, the Italian Government Strategy of pushing on the key role occupied by Startups in order to drag the development of the whole Economic System of the Country has been confirmed. Indeed, it is not a novelty that previous interventions of promoting the Startups’ phenomenon succeeded in shaking up the productive system considered as a whole, and also brought an increase in the occupation, especially among the youngest.

The Ministry of Economic Development, following the signature of a decree-law this last February 18^th by the two Ministers Guidi and Padoan, announced with a press release the extension of tax breaks introduced in 2012 for the current year, together with creation of an easier procedure for the set up of startup companies, without notary participation.

The extension is completely effective today as published in the 84^th Official Gazette of April 11^th 2016.

The tax breaks at issue are addressed not only to the Innovative Startups directly, but also to those subjects, both physical persons or companies, that are meant to pay the IRPEF or IRES tax, and decide to invest capitals in the growth of Startups or in their Certified Incubators (as defined at the article 25 of the 179/2012 Decree).

The measures introduced provide, in short, a 19% deduction for physical persons and 20% for the Companies, for each contribution amounting up to, respectively, a maximum of 500 thousands of Euro and a maximum of 1.8 millions of Euro. The deduction grows up to the 25 and 27% in the case of a Company dealing with a socially relevant purpose or developing and selling only high-tech or energy-related services and products.

In the case of a deduction exceeding the amount of the gross tax due for the current year, the opportunity of bringing the deduction to the following fiscal years – but not more than three - is given to the subject.

Moreover, the law-decree introduces a raise in the contribution allowed for deduction purposes. According to the previous precept a contribution higher than 2.5 millions of Euro would have meant the complete loss of the tax break; the new decree instead allows contributions amounting up to 15 millions, quite a remarkable difference!

Just a few months ago an important goal has been achieved on the Startups’ matter: on December 17^th the Ministry of Economic Development allocated new funds in order to enhance the already set Start & Smart system. This system is meant to allow innovative startups to profit by a vast array of benefits including the free-of-charge access to public guarantees on bank loans.

In the meantime, while waiting for the effects of this benefits’ extension, it seems possible to be confident that these new provisions will be able to continue stimulating the whole entrepreneurial Italian system.