HomeBlogINDUSTRY 4.0 Incentives — Innovation - Part Two

INDUSTRY 4.0 Incentives — Innovation – Part Two

Here we are at the second meeting to discover the incentives for industry 4.0 that the Italian State has made available. In the previous article, we saw how the National Industry 4.0 Plan provides for facilitations aimed at developing two main areas. Innovation and competitiveness. In today’s article we see the 3 other incentives for industry 4.0 that the Government has envisaged in favour of the digitisation of businesses.

Investing in the future thanks to R&D Tax Credit

Competitiveness, especially internationally, depends very much on the degree of innovation of the production processes and the products themselves. Investing in Research and Development has always been a cornerstone of continuous improvement. It is known that in Italy this aspect is often and willingly taken into little consideration, especially by SMEs. The R&D tax credit is one of the incentives for industry 4.0 aimed at stimulating private spending in research and development.


Specifically there is a 50% tax credit relating to R&D expenditure. The annual cap is EUR 20 million per beneficiary. It can be required for all expenses made for industrial, fundamental and experimental research. The recruitment of highly qualified technical staff is also part of this proposal and the purchase of laboratory equipment and instruments.
Accessing the R&D tax credit is easy. It is only necessary to indicate the costs incurred within the framework of the Single Model and to demonstrate the costs with the accounting documentation.

Patent Box: one of the incentives for industry 4.0 that gives value to intangible assets

This is how intellectual property is finally recognized and rewarded, if in national territory! The Patent Box is aimed at making the Italian market more attractive to both domestic and foreign investors. All thanks to a concessional taxation on income from the use of intellectual property.


Thanks to the Patent Box it will adhere to an optional concessional taxation scheme attributable to all income from the use of intangible property. The latter include know-how and software covered by copyright, industrial patents, registered trademarks. In concrete terms, IRES and IRAP rates, from 2017, will be reduced by 50% on income related to the use of intangible assets. An essential condition for obtaining such an incentive is the conduct by the taxpayer of R&D activities related to the development and maintenance of intangible assets.
The Patent Box must be exercised on the tax return for the first tax period for which you opt, and is valid for 5 years. At the same time, it is possible to renew the incentive request for an equal duration.

incentives for industry 4.0: startups and innovative SMEs

In order to support innovative companies, their development and growth, the Italian Government has made interesting changes to the establishment of business activities. These legislative interventions cover all stages of the life cycle of new companies. Collaboration, innovation and internationalisation are the three pillars behind these interventions. Among the facilities, they are noteworthy: free and digital setting up, IRPEF deductions and deductibility of the IRES taxable, free access to the SME Guarantee Fund.
Equity crowfunding, for the raising of venture capital, is also worth noting. And Italia Startup Visa, a digital, simple and intuitive to attract innovative entrepreneurs. In order to qualify for this incentive you must register in the respective special sections of the business register. More details on requirements, how to apply for incentives for industry 4.0 and duration of benefits can be found on the official National Planwebsite.


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