Tax Credit for Listing Small and Medium Enterprises (SMEs): What It Is and How It Works
The website of the Ministry of Entrepreneurship and Made in Italy has published instructions for accessing the tax credit for the listing of small and medium-sized enterprises (SMEs), namely to reimburse the costs of consultancy services incurred in 2024 for listing on regulated markets. The application can be submitted until March 31, 2025. Let's see what it is.
What is the SME Listing Tax Credit?
The tax credit is intended to support small and medium-sized enterprises that decide to enter a regulated market or multilateral trading systems of a Member State of the European Union or the European Economic Area. It was introduced by the Budget Act for 2018 (Article 1, points 89-92 of Act No. 205/2017) and is regulated by the decree of 23 April 2018 of the Ministry of Economic Development, in coordination with the Ministry of Economy and Finance, which defined the procedure and criteria for granting this credit.
How does this work
Under the 2023 Budget Act, small and medium-sized enterprises that initiate a listing procedure on a regulated market or in the EU or EEA multilateral trading systems and that have received listing approval may apply for a tax credit of 50% of the consultancy costs incurred, up to a maximum of €500,000.
In addition, the so-called "Extension Decree", transformed into Law No. 18 of 23 February 2024, extended the measure until 31 December 2024 (including consultancy costs incurred up to that date for a listing in 2024). Consequently, companies can request a tax credit of 50% up to a maximum of €500,000. The credit can be granted to cover the following types of consultancy services:
- Services aimed at starting the listing process and preparing for it, such as the implementation and configuration of a management control system, assistance in developing a business plan, support at all stages of preparation for listing in the target market.
- Services provided at the listing approval stage and designed to confirm a company's compliance with the requirements for listing and subsequent presence on the market.
- Services required for placing shares among investors.
- Consultations on financial reporting revision and report preparation, including financial due diligence.
- Assistance in preparing documents for listing and prospectus or documents for placement among qualified investors.
- Advice on legal, tax and contractual issues related to the listing procedure, including analysis of information documents, legal and tax due diligence, as well as corporate governance issues.
- Communication services that ensure maximum company visibility, such as press releases, interviews, events and presentations to the financial community.
How to apply
Applications can be submitted from 1 October 2024 to 31 March 2025 for a listing carried out in 2024 (for consultancy costs incurred up to 31 December 2024). Applications must be submitted by email to: dgind.div05@pec.mimit.gov.it .
