Law No. 247/2013 allows Italian companies that prepare their financial statement in accordance with the Italian Standard Accounts to revaluate the assets recorded in the financial statement as of 31 December 2012. The relevant benefits for the companies that adopt the revaluation are:
- From a civil/accounting point of view: increasing both the asset’s value and the shareholders’ equity
- From a tax point of view: deducting higher depreciation costs and lowering the gain related to the sale of assets
- Relevant peculiarities in relation to this law are described below.
The revaluated value of the assets can be alternatively registered as follows:
- By increasing both the purchase cost and the relevant accumulated depreciation
- By increasing the sole purchase cost
- By reducing the sole accumulated depreciation
Fiscal cost of the revaluation
A special tax (to be paid by 16 June 2014) is calculated on the increased value of the assets: 16% for depreciable assets and 12% for nondepreciable assets. Furthermore, it is allowed to distribute the balance of reevaluation (increase of the asset value minus the payable 16% tax) to the shareholders after paying a tax equal to 10% of the revaluation value.
The entities allowed to benefit from the revaluation law are:
- Limited company by shares (S.p.A.)
- Partnerships limited by shares (S.a.p.a.)
- Private limited company (S.r.l.)
- Limited liability cooperative societies and mutual insurance societies
- European Company (S.E.)
Assets that can be revaluated
Basically, all tangible and intangible assets, including the fixed asset shares, can be revaluated. The revaluated value has to be recorded in the financial statement approved after 1 January 2014. Goods that are from the production or sale of the company are excluded from the possibility to revaluate.
Deferred tax benefit
The tax benefit deriving from the higher cost of the amortisation of the revaluated assets will take effect (i.e reducing the tax burden) as of 2016, while the reduction of the gain in case of sales of revaluated assets will take effect as of 2017.
Finally, it is important to highlight that the cost of the net revaluated assets can never exceed the current value of the assets.