Training tax credit 4.0 is a tax relief measure provided by the ‘Piano Nazionale Impresa 4.0’ by MISE, aimed at stimulating investments for the training of employees to support the technological and digital transformation of companies.

Over the last few years, it has been renovated many times and this last modification, provided for by the Aid Decree, has brought major benefits thanks to the increase in rates.

What are the benefits of the new tax credit rates for Training 4.0?

• For small companies, an increase from 50% to 70% of eligible expenses up to an annual maximum of 300,000 euros
• For medium-sized companies, an increase from 40% to 50% of eligible expenses up to an annual maximum of 250,000 euros
• For large companies, the credit remains unchanged at 30% of eligible expenses up to an annual maximum of 250,000 euros

There are, however, two conditions that must be met to be able to qualify for the increase in tax credit:

• The training activities must be provided by the entities identified by the decree of the MISE and must be adopted within 30 days from the date of its entry into force.
• The results relating to the acquisition or consolidation of skills deriving from the training activities must be certified in accordance with the procedures established by the same ministerial decree.

If the above conditions are not met, the tax credit measures are reduced to 40% for small companies and to 35% for medium-sized companies.

In addition, the tax credit measure is increased for all companies, subject to the maximum annual limits, to 60% if the recipients of the training fall into the categories of disadvantaged or very disadvantaged employees, as defined by the Decree of the Minister of Labour and Social Policies of 17 October 2017.

What are the eligible expenses?

New for 2022 is an expansion of the expenses eligible for the tax credit. They include:

• Personnel costs related to trainers for their hours of participation in training
• Operating costs related to trainers and trainees directly related to the training project (i.e., travel expenses, materials and supplies directly related to the project, depreciation of tools and equipment to the extent that they are used exclusively for the training project.) Accommodation costs are excluded, except for the minimum necessary for participants who are disabled workers
• Costs of consultancy services related to the training project
• Personnel costs related to trainees and indirect overhead costs (administrative costs, rent, overheads) for the hours during which the trainees attended the training

 What does it finance?

 Training activities in the following technologies are eligible for tax credit:

• Big data and data analysis
• Cloud and fog computing
• Cyber security
• Simulation and cyber-physical systems
• Rapid prototyping
• Visualisation, virtual reality (rv) and augmented reality (ra) systems
• Advanced and collaborative robotics
• Man-machine interface
• Additive manufacturing (or three-dimensional printing)
• Internet of things and machines
• Digital integration of business processes

Who is it aimed at?

 All companies that are resident in the territory of the State, including permanent establishments of non-residents, can apply for the tax credit, regardless of their legal nature, economic sector, size, accounting regime and the system for determining income for tax purposes.

 How can the tax credit be accessed?

 The tax credit must be indicated in the income tax return for the tax period in which the expenses were incurred and in those for subsequent tax periods until its use ends.

It can be used, exclusively by offsetting, starting from the tax period following that in which the eligible expenses were incurred, by submitting the F24 form through the telematic services made available by the Revenue Agency.

Finally, to qualify for the tax credit, the incurrence of eligible expenses must be evidenced by a certification, to be attached to the financial statements, issued by the statutory auditor.

Costs incurred to fulfil this certification obligation are, however, eligible to directly increase the tax credit within the limit of 5,000 euros.

If you would like to learn more about this topic, please do not hesitate to contact us. One of our experts will be able to help you.

Il team BizPlace