In today’s economy, innovation isn’t optional—it’s essential. To support this imperative, the government offers a tangible, advantageous fiscal tool: the Research & Development Tax Credit. Established to encourage investment in experimental, technological and innovative projects, this incentive has become one of the most effective levers for boosting the competitiveness of Italy’s industrial landscape.
What Is the R&D Tax Credit?
The R&D Tax Credit is available to any company undertaking basic research, industrial research or experimental development activities. Its aim is to foster the creation of new knowledge, solutions, products or processes that generate real added value.
- Who qualifies: Companies of any sector, legal form or size
- How to use it: Offset against tax liabilities via F24 form
Rates and Limits for 2024–2025
For expenses incurred in 2024 and 2025, the credit amounts to:
- 10% of qualifying R&D expenses
- Up to €5 million per year, per beneficiary
Note: Rates may change based on future budget laws.
Eligible Activities and Costs
Only activities matching the OECD Frascati Manual criteria—systematic, innovative, uncertain, and aimed at generating new scientific or technological knowledge—are eligible. Key cost categories include:
- Highly skilled personnel directly engaged in R&D projects
- Research contracts with universities, research centres or other companies
- Depreciation of equipment and tools used in R&D
- Materials and prototypes used in experimental phases
- Certification costs for R&D expenses (up to €5,000)
How It Works: Operational Steps
- Incur expenses during the relevant fiscal year
- Prepare a technical report signed by a scientific or technical lead, detailing the R&D activities
- Obtain cost certification from a statutory auditor (mandatory if not already audited)
- Declare the credit in your corporate tax return
- Offset via F24, split into three equal annual instalments
From 2024 onward, a preliminary notification to the Ministry of Enterprises and Made in Italy (MIMIT) is also required before project commencement.
Why Precision Matters
The R&D Tax Credit is a real opportunity—but it demands technical and documentary precision. Misclassified activities or incomplete documentation can lead to disallowance of the credit, repayment obligations and fines.
Partner with R&D experts to maximise the value of your innovation investments and safeguard your entitled credit.
Discover more about our R&D consultancy services and request your free initial assessment today! ✉️ info@italystartup.org | 🌐 italystartup.org | 📞 +39 349 380 6329
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