Liquidity Decree: measures in supporting the third sector
Decree-Law no. 23 of 8 April 2020, the so-called “Decreto Liquidità”, provides for some measures relevant to third sector organizations (ETS), sports promotion organizations (EPS), amateur sports associations and clubs (ASD/SSD) and non-commercial organizations in general.
In particular, Articles 13 and 14 provide for measures for access to credit, while Articles 18 and 22 provide for tax and accounting measures.
The measures provided for in this new decree are in addition to those of the Decreto Cura Italia no. 18 of 17 March 2020.
We would like to remind you of some of the most relevant provisions already included in the Cura Italia Decree for non-profit entities, such as the following:
- tax incentives for donations to non-profit organizations
- the extension to 31 October 2020 of the deadline for the update of the statutes for APS, ODV, and ONLUS to the provisions of the Third Sector Code
- extension of the deadline for the approval of the 2020 budget to 31 October 2020 for APS, ODV, and ONLUS
- the possibility to have access to wage subsidies for a period not exceeding 9 weeks (art. 22).
Credit access measures
The Decreto Liquidità in art. 13, introduces two main measures regarding the associative “entrepreneurial” realities:
- SMEs that self-certify that they have been damaged by the emergency of COVID-19 and require new financing with amounts up to 25% of 2019 revenues and a ceiling of €25,000, can draw on the Fund which will guarantee 100% of the financing, free of charge and automatically. The bank will apply a predefined maximum interest rate to the financial operation
- SMEs with revenues of up to €3,200,000 that self-certify that they have been damaged by the emergency of COVID-19 and require new financing with amounts of up to 25% of 2019 revenues, can draw on the Fund that will guarantee from 90% to 100% of the financing, combining it with that which can be issued by a Confidi.
The new decree has provided various opportunities for access to the Guarantee Fund, also thanks to the intervention of the Sace.
However, because there is no real reference to third sector entities (at least with a VAT number), we expect more clarification on the possibilities of access to credit for these entities.
On the other side, Art. 14 of the Decreto Liquidità introduces the financing provided by the Istituto del Credito Sportivo.
The procedures for the granting of guarantees and contributions will be established by the Istituto per il Credito Sportivo itself.
Tax and accounting measures
Art. 18 of the Decreto Liquidità provides for a suspension of the tax payment, for the months of April and May, also in favor of non-commercial entities: the suspension applies only to withholding taxes on income from employed and similar work and withholding taxes on regional and municipal taxes, social security and welfare contributions and premiums for the obligatory insurance.
The Tax Authority with Circular no. 9/E/2020 has specified that for this category of entities, the above-mentioned suspension applies also if the entity carries out, in addition to its institutional activity, also a commercial activity, in a non-prevalent or exclusive way. In the last case, regarding the commercial activity, the entity may benefit from the suspension of payments, as per article 18 in the case of a taxpayer carrying out business activities.
The suspended payments must be made by 30 June 2020 in a single instalment, or 5 monthly instalments of equal amount, without the application of interest and penalties.
Finally, art. 22 has provided, only for the year 2020, the postponement from 31 March to 30 April 2020 of the deadline to deliver the Certificazione Unica: this measure will also apply to Third Sector entities.
Cecilia Breviglieri