Overview about Corona measures in Italy

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On lockdown since the 8th of March, Italy has adopted the following measures to face COVID-19 crisis.

Financial help (loans etc…)

In order to support the liquidity of companies affected by the epidemy, the Italian Government has made it so that loans to companies that have suffered a reduction in turnover are facilitated.

Relief to accompany a slowdown or absence in business activity •For small and medium sized companies:

  • Credit lines granted and the loans granted for credit advances cannot be cancelled until 30 September 2020
  • Non installment loans with contractual expirations before 30 September 2020 are suspended until the 30th September 2020
  • As for loans with installments and for mortgages, the payment of installments due before 30 September 2020 is suspended until 30 September 2020, and the repayment plan of the installments is deferred in such a way that ensures the absence of new or greater charges for both parties
  • Partial unemployment for companies of any size with the Italian Government paying 80% percent of the usual salaries of the employee
Tax Measures

For specific categories of taxpayers, businesses working in sectors affected directly by the virus withholding payments, social security and welfare contributions and premiums for compulsory insurance are suspended for the period between 2 March and 30 April 2020. The specific categories of taxpayers are expressly listed in the Law Decree No. 23 of 8th April 2020.

Suspensions of payments are provided for taxpayers carrying out a business, with a total amount of revenue/turnover not exceeding 2m Euro in the previous fiscal year.

Statute of limitation is postponed for two calendar years.

Specific provisions in order to permit the conversion into tax credits of the deferred tax assets in relation to the assignment/sale of receivables towards defaulting debtors occurred within 31 December 2020.

A tax credit equal to 60% of the amount of real estate rental expenses incurred in March 2020 is established for businesses excluding those in the trade of food and basic necessities.

Petition for bankruptcy or the declaration of insolvency from large companies filed between the 9th March 2020 and 30th June 2020 will be dismissed by courts excepting those filed by the Public Prosecutor when precautionary protective measures on the company’s assets have been requested.

Deadlines for compositions with creditors and debt restructuring agreements that already have been validated by competent courts whose deadlines expire between 23rd February 2020 and 31st December 2021 have been automatically postponed by 6 months

With pending proceeding “In Blank” or “With Reservation” where the court has already set a submission deadline, the applicant company has the right to demand an extension of the deadline of up to 90 days as a result of the COVID emergency.

The Italian “New Code of Crisis and Insolvency” will be postponed to the 1st September 2021 instead of coming into form on the 14th August 2020.

Due to the extraordinary situation of the epidemics, the reinstatement of the registered capital (when reduced by 1/3 as a consequence of loss) or the winding up of the company will not be applied until the 31st December 2020.

Specific Insolvency measures

Petition for bankruptcy or the declaration of insolvency from large companies filed between the 9th March 2020 and 30th June 2020 will be dismissed by courts excepting those filed by the Public Prosecutor when precautionary protective measures on the company’s assets have been requested.

Deadlines for compositions with creditors and debt restructuring agreements that already have been validated by competent courts whose deadlines expire between 23rd February 2020 and 31st December 2021 have been automatically postponed by 6 months

With pending proceeding “In Blank” or “With Reservation” where the court has already set a submission deadline, the applicant company has the right to demand an extension of the deadline of up to 90 days as a result of the COVID emergency.

The Italian “New Code of Crisis and Insolvency” will be postponed to the 1st September 2021 instead of coming into form on the 14th August 2020.

Due to the extraordinary situation of the epidemics, the reinstatement of the registered capital (when reduced by 1/3 as a consequence of loss) or the winding up of the company will not be applied until the 31st December 2020.

This information was drafted by the European Insolvency Practitioners Association

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