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n. 2/2017 - Amendments to the ACE regulations

The amendments to the ACE regulations

  Law no. 11.12.2016 of 232, better known as the "2017 Budget Law", significantly changed the regulations of ACE (Aid to economic growth), introduced with decree law no. 6, converted, with amendments, by law 2011 December 201, n. 22. The ACE is an incentive for the capitalization of companies which operates by means of a reduction in the taxation of income. In a nutshell, the facility consists in admitting as a deduction from the total net income declared an amount corresponding to the notional return on the increases in equity. To this end, the change in the share capital increase that is relevant for the purposes of the regulations is the increase with respect to the shareholders' equity existing at the end of the current financial year as at 2011 December 214, with the exclusion of the profit for the year. The innovations regarding ACE concern in particular the following aspects:
  1. changes to the return on equity ratio;
  2. elimination of the preferential regime for newly listed companies;
  3. reduction of the ACE basis for increases in the stock of securities and transferable securities;
  4. equalization of the calculation methods for individual entrepreneurs and partnerships in ordinary accounting;
  5. limitations for the carry-over of ACE surpluses in the context of extraordinary transactions.
  Newsletter no. 2/2017
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