COVID-19. On 17.3.20 the Italian government adopted the 'Cura Italia' law decree, containing Strengthening measures of the National Health Service and economic support for families, workers and businesses connected to the epidemiological emergency from COVID-19. (1) A provision that includes a series of extraordinary measures in favor of individuals, workers and businesses. The ABC to follow.
Equally commendable the decision of Prime Minister Giuseppe Conte, on 16.3.20 in Brussels, to propose the postponement of the signature to the ESM (European Stability Mechanism). A date to be defined, possibly at the Greek Kalends, to save Italy from the fate that had already occurred to Greece following the financial crisis of 2008. (2)
'Cura Italia' decree, fiscal measures
The 'Cura Italia' decree establishes a series of measures - financial, fiscal and other - aimed at stemming the crisis caused by the coronavirus pandemic. As well as updating the organization of production systems and services, in the public and private sectors, in the light of the experience gained in the first weeks of emergency. At the fiscal level, a brief mention of the news:
- suspension of payments. Payment of withholding taxes on social security and welfare contributions and compulsory insurance premiums is suspended.
The suspended payments are made, without the application of penalties and interest, in a single solution by 31.5.20. Or through installments, up to a maximum of 5 monthly installments of the same amount, starting from May 2020,
- terms of fulfillment, suspension. Any further tax compliance with expiration between 8.3.20 and 31.5.20 is suspended. The suspended payments are made, without applying penalties and interest, in a single solution by 31.5.20. That is, through installments, up to a maximum of 5 monthly installments of the same amount, starting from May 2020,
- distribution exercises, tax credits. A tax credit equal to 60% of the rent for the month of March 2020 is granted to subjects carrying out business activities, for properties that fall within the cadastral category C / 1 (shops and shops),
- sanitation of workplaces, tax credits. The 'periodic' sanitation and daily cleaning of the workplace, as seen, are just some of the indispensable measures for the continuation of the production activities not already suspended by Prime Ministerial Decree 11.3.20, the so-called #IoRestoaCasa decree. (3) To the subjects who exercise business activity, art or profession for the 2020 tax period, an (additional) tax credit of 50% of the costs of sanitizing the environments and work tools is recognized, up to a maximum of 20.000 euros. The tax credit is recognized up to the exhaustion of the maximum amount of € 50 million for the year 2020.
'Cura Italia' decree, social safety nets
The decree-law 17.3.20 it also introduces a temporary reform of social safety nets. In short:
- ordinary layoffs, new treatment. A new ordinary redundancy fund, replacing the previous social safety nets, is established in favor of:
a) companies that upon the entry into force of Legislative Decree 23.2.20, n. 6 have had an extraordinary salary integration treatment in progress,
b) companies that have a solidarity check in progress,
- new redundancy fund in derogation. The Regions may authorize a wage supplementary fund in derogation, in favor of companies where the protections provided for by the current provisions on the suspension or reduction of working hours in constant relationship are not applied,
- indemnity for professionals, Co.Co.Co., agricultural workers and seasonal, entertainment. To freelancers with a VAT number active as of 23.2.20, to workers with coordinated and continuous collaboration relationships active on the same date (registered in the separate management, not pensioners or registered in other compulsory social security forms), to agricultural workers to fixed-term contract and to show business workers, an indemnity is recognized One-off of € 600,
- application for agricultural unemployment, extension. The deadline for applying for agricultural unemployment is extended to 2019, only for applications within the competence of 1.6.20,
- first home fund (so-called Gasparrini fund). For a period of 9 months, admission to the benefits of the fund is extended to self-employed workers and freelancers who self-certify that they have registered, in a quarter after 21.2.20 (or in the shorter period of time between the date of the application and the 21.2.20) a decrease in its turnover> 33% compared to turnover in the last quarter of 2019, as a result of the closure or restriction of its business in implementation of the provisions adopted by the competent authority for the coronavirus emergency, (4)
Agile work and social security
To private sector workers suffering from serious and proven pathologies - for which one remains reduced working capacity - priority is recognized in the acceptance of requests to perform work services in the manner of agile work.
The employers they must authorize the agile way of working to employees who have a person with in their family unit disability already hosted in a rehabilitation center closed by the provision. If the family member with disabilities is a minor, the agile way of working cannot be refused, unless this is (manifestly) incompatible with the characteristics of the company. In all these cases, agile work is the ordinary way of carrying out the service.
Leave and allowance:
- for employees in the private sector. As of 5.3.20, working parents in the private sector are entitled to a specific leave, for children aged <12 years, with an allowance equal to 50% of the salary. The use of the leave referred to in this article is recognized alternatively to both parents for a total period (continuous or split) <15 days,
- for employees in the public sector and in the private health sector accredited. Since 5.3.20, parents who are employees of the accredited public or private sector have the right to take advantage of compensated leave from work.
The disbursement of the allowance and the indication of how to use the leave are the responsibility of the public administration with which the employment relationship exists.
Bonus baby-sitter. As an alternative to the leave with allowance mentioned above, parents of children aged <12 can choose to receive a bonus for the purchase of babysitting services up to a maximum total limit of € 600, to be used for services provided.
Law 104/92. The number of days of monthly leave paid by notional contributions (as per law 104/92, art.33.3) increases by a further 12 days for both the months of March and April 2020.
Employees, award. For the month of March 40.000, holders of income from employment with total income <2020 euros are entitled to a bonus, which does not contribute to the formation of income, equal to € 100 euros to be compared to the number of days.
Domestic work, suspension of terms for payment of contributions. The terms for the payments of social security and welfare contributions and those for compulsory insurance due by domestic employers expiring in the period from 23.2.20 to 31.5.20 are suspended.
Quarantine. The period spent in quarantine (with active surveillance or in fiduciary home permanence with active surveillance) by workers in the private sector is equated to illness, for the purposes of the salary provided for by the relevant legislation. However, without being computable for the purposes of the period of employment.
Pensions and assistance, extension of forfeiture terms. From 23.2.20 to 1.6.20 the expiry of the forfeiture terms relating to social security, welfare and insurance benefits provided by INPS and INAIL is suspended by law.
Companies, extraordinary measures
Requisitions. Until July 31, 2020, the civil protection will be able to authorize the requisition in use or ownership, by any public or private entity, of health and medical-surgical facilities, as well as movable property of any kind, necessary to deal with the aforementioned health emergency, also to ensure the supply of structures and equipment.
Masks, funds for production. For the management of the COVID-19 emergency, and until the end of the state of emergency, it is allowed to produce surgical masks in derogation of current regulations.
SMEs, financial support measures. SMEs will be able to avail themselves of the financial support of the State, up to 33% of the loans disbursed:
- for credit openings revocation and loans granted against advances on credits existing at 29.2.20 (or, if higher, at 17.3.20) the amounts granted, both for the part used and for that not yet used, cannot be revoked even in part until 30.9.20,
- for non-installment loans with contractual expiry before 30.9.20 the contracts are extended, together with the respective accessory elements and without any formalities, until 30.9.20.
SMEs, central guarantee fund. For 9 months from the provision, the State provides SMEs with a guarantee on loans of up to € 5 million for investments and restructuring of debt situations, in compliance with the guarantees and limits set by the provision.
Business liquidity support. Cassa Depositi e Prestiti SpA is authorized to grant liquidity to companies that have suffered a reduction in turnover due to the aforementioned emergency. Also in the form of first loss guarantees on loan portfolios, through banks and other entities authorized to exercise credit. (5)
Financial support measures. If a company transfers for consideration, by 31.12.20, pecuniary credits due to defaulting debtors, it can transform the deferred tax assets referring to some components into a tax credit.
Background Made in Italy. The 'Cura Italia' decree establishes a fund (Fund for integrated promotion) with an initial endowment of 150 million euros to be distributed for integrated promotion at the Ministry of Foreign Affairs and International Cooperation, in order to enhance the tools for promotion and of support for the internationalization of the various components of the country system, including the extraordinary support plan for Made in Italy carried out through the ICE.
Other measures they concern justice, universities and local authorities, sports associations and sports collaborators.
Footnotes to the story
(GU General Series n.70 of 17-03-2020)
(2) On the ESM (European Stability Mechanism), the hidden long-range emergency, see the previous article
(3) Prime Ministerial Decree 11.3.20, the so-called #IoRestoaCasa decree, in the Official Gazette General Series 11.3.20 n. 64) https://www.gazzettaufficiale.it/eli/id/2020/03/11/20A01605/sg
On containment measures, worker safety and responsibility of the legal representatives of the companies see the previous article
(4) For access to the first home fund presentation of the ISEE (Equivalent Economic Situation Indicator) is not required
(5) The guarantee of the state it is issued in favor of Cassa Depositi e Prestiti SpA up to a maximum of 80% of the exposure assumed.