Personal Income Tax: deductions on corporate restructuring
To qualify for income tax deduction on the cost of restructuring the taxpayers are required to observe a series of requirements
Notice of commencement of work: before work is necessary to send, by registered mail, the notice of commencement of works made on the appropriate model that can be collected in the territorial offices of the Agency or at the website www.agenziaentrate.gov.it.
Communication (for all Italian regions and autonomous provinces) must be sent to the following address: Pescara Operational Centre - Via Rio Esparto, 21-65129 Pescara.
In this model should also include:
- A copy of the concession, authorization or notice of commencement of work, if required by building regulations;
- Cadastral data (or, failing that, a photocopy of the application of stacking);
- A photocopy of the receipts of payment of ICI from 1997 onwards, if due. If, however, the taxpayer who asks you to deduct is a subject different from that required to pay ICI (ie, the tenant), it is necessary to transmit copies of receipts. Even for work carried out on non-condominium common areas must be accompanied by proof of payment of ICI;
- A photocopy of the resolution (only for interventions that require such prior approval) and table thousandth the cost-sharing in the event that work is being performed on the common parts of residential buildings. If as a result the amount of work performed exceeds the initially budgeted, it is necessary to transmit the new table and further award of costs at the same office that received the original communication;
- The declaration of the owner of consent to the execution of the works, in the event that these are performed by the holder of the property (tenant, borrower).
Although resort to substitute declaration, taxpayers are required to tick the boxes of the form relating to the documentation required.
For buyers of garages appurtenant already made, the communication model can also be sent after the date of commencement of work provided it is within the terms of the submission of the tax return for the tax year in which qualify for the means deduction.
Communication to the Local Health
At the same communication to the operating center of Pescara, care stakeholders to deduct, the Company should be sent to the local health authority for the area a notice by registered mail with the following information:
- General of the customer of the works and their location;
- Nature of the intervention to be implemented;
- Identification of the company performing the work with the explicit assumption of responsibility by the same, in order to comply with the obligations imposed by current legislation on safety at work and contribution;
- Date of the start of the recovery.
The communication should not be performed in all cases in which the enactment relating to safety conditions on building sites do not provide for the obligation of prior notification to the local health authorities.
Payment by bank
To qualify for the deduction is tax-deductible expenses must be paid by bank or post office which shall specify the purpose of the payment, the tax code of the person who pays the tax code or VAT number of the payee. Are exempted from this payment method those expenses that you can not pay by bank (eg, infrastructure costs, withholding taxes on professional fees, stamp duties).
If there are several subjects that incur the expenditures and intend to qualify for the deduction, the transfer must include the social security number of all those who are interested in the tax benefit. If the transfer contains an indication of the tax code of the only party submitting the communication module to the operating center of Pescara, the other entitled to get deduction shall indicate in the space of the tax return the tax code shown on the bank.
For interventions on common areas of condominiums, in addition to the tax code of the building is necessary to indicate the administrator or other condominium undertaking the payment.
At the time of payment of the transfer, from July 1, 2010, banks and post offices should operate a withholding tax of 10% on account of tax payable by the company that performs the work.
Other obligations
Taxpayers concerned must keep invoices or receipts relating to expenses for the construction of renovations and the receipt of payment. This documentation, which must be made out to the people who benefit from the deduction, in fact, must be produced when requested by finance departments.
For interventions on common areas of condominiums the taxpayer, in lieu of all documentation required, use a certificate issued by the administrator of the condominium, in which the same certifying that they have complied with all the obligations required and indicates the sum of which taxpayer may take into account for the purposes of deduction.
25/11/2010
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Translated via software
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Source:
Italian version of ReteIngegneri.it