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Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure IT-2020-21/998 – measures in Italy

Exemption of the regional production tax

Esenzione versamento IRAP

Country Italy , applies nationwide
Time period Open ended, started on 19 May 2020
Context COVID-19
Type Legislations or other statutory regulations
Category Supporting businesses to stay afloat
– Direct subsidies (full or partial) or damage compensation
Author Lisa Dorigatti (University of Milan) and Eurofound
Measure added 14 July 2020 (updated 17 July 2020)

Background information

During the COVID-19 crisis, the Italian Government introduced some law provisions aimed to lighten the tax burden of businesses, employees and citizens. Amidst these measures, the Law Decree No. 34 of 19 May 2020 (art. 24) provided for the exemption from the payment of the regional production tax (IRAP) balance due for 2019 and the first instalment of the IRAP advance due for 2020. The measure is mainly aimed to allow smaller businesses and self-employed to stay afloat.

Content of measure

The exemption from the payment of the regional production tax (IRAP) introduced by the Law Decree No. 34 of 19 May 2020 (art. 24) is relating to:

  • the balance due for 2019; and
  • the first instalment of the IRAP advance referring to the year 2020, and equal to 40% of the overall amount due.

Eligible are businesses and self-employed workers with revenues not exceeding € 250 million in the last tax period. The measure does not constitute a deferral of payments, but a whole cancellation. It aims in fact at supporting the liquidity of businesses within the economic crisis due to the COVID-19 pandemic.

Use of measure

No information available

Target groups

Workers Businesses Citizens
Does not apply to workers Applies to all businesses Does not apply to citizens

Actors and funding

Actors Funding
National government
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement No involvement
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: N/A


Social partners were not involved in designing, implementing and monitoring the measure.

Views and reactions

The employer association Confindustria lamented that the Government's measures in support of businesses were too slow and piecemeal.



Eurofound (2020), Exemption of the regional production tax, measure IT-2020-21/998 (measures in Italy), EU PolicyWatch, Dublin,


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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.