Tax Credit

Training Tax Credit 4.0: Incentives for Training


The training tax credit 4.0 is one of the incentives that the government has promoted in favor of businesses, to give tangible help in training personnel in new technologies.

It has recently been announced that, also for 2019, there will be incentives for entrepreneurs who will decide to give an important role to the training of their staff, so as to favor economic development, as well as human development.

What then does the provision of this specific tax credit provide ? How is digital training structured? Let’s find out the details of the National Plan and see how to make the most of this opportunity for your business.


Training tax credit 4.0: incentives for digital training for businesses


The so-called “industry 4.0” is a term coined to define what many believe to be the fourth industrial revolution, one characterized by digital. The new technologies are indeed influencing the way of doing business, and probably the trend will only strengthen. In particular, there are two guidelines that this revolution is following:

  • Data usage

Today even a small business like a shop or a mechanic has a database full of data on its customers. While until a few years ago this information lay forgotten, today it is a precious treasure to be exploited for marketing operations.

  • Interaction with machines

In addition to data management, technology also helps us from a “manual” point of view: today there are machines capable of performing very complex operations. The interaction and the correct use of these machines are a strong driving force for the development of a company.

Better not to be caught unprepared, and to seize the opportunities that the technological sector offers.

With a view to fostering the development of small or large companies, the 4.0 training tax credit should play a primary role among the incentives made available by law.

What needs to be done is to understand exactly what kind of training is among the incentives, and how to start from these to create a real digital training program for your business. The 4.0 training tax credit is only part of the broader 4.0 National Business Plan. With this plan there are three main guidelines to follow:

  • Act on enabling factors
  • Intervene with horizontal and not vertical actions
  • Operate in a logic of technological neutrality


How it is born


How it is born


The training tax credit 4.0 therefore deals with the so-called “enabling technologies”. This is a measure introduced at the end of 2017 by the government with Law No. 205. Initially, the law provided for the payment of incentives only for the year 2018, taking the form of a training aid scheme. In the first period following the application of the law a great confusion was created about which type of training was admitted, what were the requirements and other questions, which made it necessary to issue a circular letter, that of December 3, 2018, containing all the clarifications .



What is it about

What is it about


In essence, with the training tax credit 4.0 you get a tax credit equal to 40% of the expenses related to personnel engaged in digital training activities, limited to hours or days of training and with a maximum limit of € 300,000 by beneficiary.

The Ministry of Economic Development describes this credit as an incentive to make investments in the field of personnel, and specifically to invest in the acquisition of specific skills in new technologies.


Digital training


Digital training


But what is this digital training that employees should undergo? It is a set of activities that have to do with new technologies, including:

  • Internet
  • Robotics
  • Prototyping
  • Cyber ​​security
  • Big data
  • Virtual reality
  • 3D printing

And so on. A set of varied activities, which obviously depend heavily on the activity the company carries out. But if some of these digital activities are very sectorial (hardly a butcher will take care of 3D printing), others are common to all activities, such as the use of the Internet and, with the introduction of the GDPR last year, the use of data.

These activities must therefore be the subject of training regulated by the respective CCNL, and at the end of the training a certificate must be issued to the employees. Finally, the auditor will issue a specific certification, without which it is not possible to access the tax credit.


The credit

The credit


Credit refers to the hours in which employees have attended training courses, which can be internal or external. However, the benefit also applies to employees who have played the role of teachers or tutors. In this case, the eligible expenses cannot exceed 30% of the employee’s annual salary.

All other expenses, such as those related to external teaching staff, amortization of instrumental assets or materials used during training are excluded.


To whom it is addressed


To whom it is addressed


Beneficiaries of this measure are all companies resident in the national territory, regardless of the accounting regime adopted, the activity carried out and the methods of determining income. It therefore addresses not only large companies, but also micro, small and medium-sized companies, including those organized in a simplified accounting regime.

The 4.0 training tax credit is also applied for foreign companies with permanent organizations in Italy and for non-commercial entities that carry out commercial activities relevant to business income.


How to apply for the tax credit?


To obtain the training tax credit 4.0 you do not need to submit any application, since you automatically log in at the time the financial statements are drawn up. Obviously there are certified documentation obligations to follow, as we have already anticipated. Furthermore, all training documentation must be kept for inspection purposes, and a final report must be drawn up showing the activities carried out.

The Conte government has confirmed all the benefits that had already been provided for 2018, so it is only a question of seizing the opportunity on the fly and investing in digital training.

Now that you have all the information, all you have to do is take advantage of the 4.0 tax credit right away!

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