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Small business, big savings
2010-01-14 15:38
An amendment to Italian law concerning the 22 Urban areas (ZFU) is intended to give a significant boost to entrepreneurs in the Ventimiglia region, one of only two urban areas in the north of Italy to benefit.
These Tax Free Zones are intended to combat unemployment and encourage economic activity by giving incentives to small and medium-sized businesses. Excluded are large scale businesses such as automobiles, shipping and road construction, and textile and steel manufacture.
An attractive tax regime is the main characteristic of the ZFUs, since anyone starting a business with an income smaller than €100,000 in the area can benefit for the first five years from tax breaks, as well as a reduction in required contributions.
They would also be exempt from the regional tax on productive activities, IRAP, if annual net production does not exceed €300,000. Moreover, exemption from municipal tax on real estate (ICI) applies to properties located in urban zone during the first 5 years if they are the property of the company and provided they are used solely to carry out business.
Regarding mandatory contributions, a further exemption applies to contracts of indefinite duration for a minimum of one year provided that 30% of workers concerned are resident in the urban zone.
Finally, a decree issued recently by the Italian Ministry of Labour in Rome authorizes the disbursement of aid to reduce labour costs, calculated on the basis of employees' contributions.
The new system requires approval from the European Union, which could delay its implementation, though this concern is not shared by the Mayor of Ventimiglia, Gaetano Scullino.
Maurice Lubatti