Sofia's solution for the management of Tax Credits deriving from renovations
The Decree-Laws no. 18/2020 and no. 34/2020 introduced into the Italian legal system tax incentive measures linked to both investment expenses, e.g. the so called “Ecobonus” and “Sismabonus”, and current expenses.
April 21, 2022 - These tax incentives are provided in the form of credits or tax deductions and are transferable to third party purchasers, who may use them to offset taxes and contributions, or transfer them to third parties. IVASS has also given the possibility of registering them among the assets covering the technical reserves and assigning them to the Segregated Funds.
SimCorp Italiana's interpretation on the management of these instruments is to divide the value and notional amount of the acquired tax credit by dividing it up:
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into a series of distinct purchases
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to be inserted in a number of data reference holdings defined on the basis of their different maturities.
Tax credits movement of, also in relation to the current structure of the "tax drawer", requires the set up of standard data references that guarantee an operation characterized by:
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fixed maturity;
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repayment in a lump sum on expiry;
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being non-refundable in advance.
Tax credits movement are, however, also divided on the basis of the specific "tax code" which characterizes both the expiry dates and the possibility of movement from the "tax drawer".
For further information, sofia.sales@simcorp.com