Appeal to the Government by Confindustria Accessori Moda and SMI Sistema Moda Italia on the Tax Credit Issue for Research and Development for 2015-2019
The issue of the Tax Credit for fashion and accessories businesses for the period 2015-2019 (Article 3 of Decree Law 145/2013) remains unresolved, despite months of pressure from Confindustria Accessori Moda and SMI Sistema Moda Italia on the Government, including during Fashion Roundtable meetings. Efforts have focused on resolving application challenges, obtaining deadline extensions for companies’ voluntary repayments, and methods to certify company-submitted projects.
Initially, seasonal samples intended for the market qualified as eligible R&D activities. However, in 2022, the Revenue Agency changed its interpretation (Resolution 41), excluding aesthetic research expenses and allowing only those related to sector “state of the art” innovation. This retroactive decision forced fashion and accessory companies to repay tax credits obtained from 2015 to 2019, despite their prior authorization by the Ministry.
Trade associations repeatedly requested an authentic application to restore pre-2022 policies. Unfortunately, this proposal was not accepted; instead, only a capital grant was introduced for companies making voluntary repayments by October 31. This grant, guaranteed by a €190 million fund pending approval, will be available not only to fashion companies but to all sectors using this procedure, implying minimal assistance per company.
By October 31, 2024, all affected entrepreneurs must decide whether to voluntarily repay obtained credits or argue that their projects meet eligibility requirements, potentially leading to legal disputes.
Confindustria Accessori Moda and SMI Sistema Moda Italia believe that the retroactive application of this new interpretation undermines legal certainty and unfairly impacts the fashion sector, which had received official confirmation on the eligibility of sample costs from 2015 to 2019. To address this, they launched an awareness campaign through an “Open Letter” in major newspapers, informing companies that their R&D projects had relied on the prevailing regulations at the time.
The entire Italian fashion and accessories sector is united in its call for clarity and legal certainty: Confindustria Accessori Moda and SMI Sistema Moda Italia will continue to support the companies they represent throughout this complex matter.
