Guidelines for R&D, Innovation, and Design Tax Credits Published

With the Mimit Director’s Decree of July 4, 2024, the “Guidelines for the qualification of research and development, innovation, design, and aesthetic ideation activities,” referred to in Article 23, paragraph 5, D.L. 73/2022 and Article 3, paragraph 5, D.P.C.M. of September 15, 2023, were approved.

These “guidelines” provide the criteria that certifiers, registered with the Mimit registry, must follow for the correct qualification of activities conducted or to be conducted for eligibility for the R&D tax credits for 2015-2019, referred to in Article 3, D.L. 145/2013, as amended, and R&D&I&D tax credits for 2020 and beyond, referred to in Article 1, paragraphs 198-208, L. 160/2019, as amended. With the publication of the guidelines, the certification procedure introduced by Article 23, paragraphs 2-5, of DL 73/2022, has finally become operational.

The “guidelines” are based on EU regulations, national legislation, the general principles and criteria contained in the so-called Frascati Manual and the so-called Oslo Manual, as well as interpretative documents from the Italian Revenue Agency and the Ministry of Economic Development. They are subject to periodic updates to reflect legislative, judicial, and procedural developments.

The role assumed by the “guidelines” in the scope of activities eligible for R&D, technological innovation, design, and aesthetic ideation tax credits is crucial.
In the case of using the new optional certification system for R&D investments and other innovative activities introduced by the so-called Fiscal Simplifications Decree, the evaluator must apply the “guidelines” for the issuance of the document, which becomes binding for the tax authorities. This means the authorities must refrain from challenging the classification of R&D&I&D activities once they are “certified.” If violations are found in the use of the tax credit and certification is not feasible, the “guidelines” may serve as a tool to evaluate possible defense strategies.

The Mimit “guidelines” were created within the framework of the new certification system for R&D, innovation, design, and aesthetic ideation activities as outlined in Article 23, paragraphs 2-8, D.L. 73/2022. The certification, which is optional, was introduced with the express aim of protecting companies from risks related to the incorrect classification of investments made or to be made within the scope of the tax credit. It guarantees taxpayer protection from potential disputes by the tax authorities regarding the classification of activities.

Certification may be requested provided that no violations related to the use of the relevant tax credit have already been detected, even in the case of the initiation of audits, inspections, verifications, or other administrative activities of which formal notice has been received.

In addition to their primary utility, the “guidelines” serve a broader function by acting as a repository of regulations, case law, and evolving procedural interpretations on the topic.
For companies preparing to report investments for the purpose of R&D, technological innovation, design, and aesthetic ideation tax credits, applying the “guidelines” to qualify eligible activities appears to be an essential step to operate with certainty.