IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

Yes

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

SMEs

JUMBO

No

TARIFF PEAK

No
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Inception date: 01 Jan 2013 | Removal date: 31 Dec 2015
Still in force

Tax or social insurance relief

According to Italy, "Decree-Law no. 179 of 18 October 2012 enacting 'Further urgent measures for the growth of the country' (Ulteriori misure urgenti per la crescita del Paese) has introduced a framework designed to promote the creation and growth of and investment in innovative start-up companies. As part of this initiative, by the notified measure, the Italian authorities plan to introduce tax incentives for private investors, both natural and legal persons, investing directly or indirectly into the equity of eligible start-ups, thereby increasing their ability to attract private capital. [...] The total budget of the measure in the form of tax revenues forgone in the period 2013- 2015 is estimated at an annual EUR 20.5 million as regards personal income tax and annual EUR 17 million as regards corporate income tax. Therefore, the total annual tax revenue forgone is expected to be EUR 37.5 million for each of the three years 2013, 2014 and 2015, for a total estimated tax revenue forgone of EUR 112.5 million." (para. 4 and 9 letter from the EC to Italy, Brussels 05.12.2013)

Based on the findings of the European Commission, "[...] a private investor can be active in any sector and market; therefore, the measures might affect trade between Member States, and potentially distort competition in the internal market." (para. 47 letter from the EC to Italy, Brussels 05.12.2013)

In the GTA database the determination of whether a policy instrument discriminates against foreign commercial interests turns on whether it creates or alters the relative treatment of domestic firms versus foreign commercial interests. On this metric, the state aid proposed here is discriminatory because the state aid is not available to competing firms outside of the implementing jurisdiction.

AFFECTED COUNTRIES

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