It seemed, in a first moment, that agricultural societies of capital lost tax benefits.
The stability law of Italian government, which also has heavy taxation of agricultural incomes and dominical, has removed, in its first version, the possibility for limited liability companies, limited partnerships and general partnership and co-operatives, which act solely agricultural, to opt for taxation of cadastral base.
The tax legislation for these types of companies law, in fact, up to now has provided the possibility to be taxed based on the annual profit, resulting from the annual profit and loss statements ( the balance sheet ) at a rate of some 27.5% IRES ( the Italian “ imposta redditi società ) , or to be taxed based on the cadastral base ( “ reddito catastale ”) which an option which was valid for a 3 year period. It has been a privilege of the 2007 Italian budget which was also provided for the flat-rate taxation for limited companies formed by farmers for processing and marketing of products. So these corporations ( agricultural companies ) from January 1, 2013 had to change log and return it to prepare financial statements. Cancel the discounts, but also the simplification of the land. With regard to the increase in the taxation the stability law introduces, for the tax years 2012, 2013 and 2014, the revaluation of 15% of agricultural income and dominicale and a multiplier of 115. For agricultural land, although not cultivated, owned and run by professional farmers and farmers enrolled in agricultural associations, the revaluation falls to 5% and the multiplier 105.
But finally, agricultural companies will be taxed on the financial statements only from 2015.
Indeed the stability law, in the version finally adopted on 21 December 2012, refer to the 2015 the amendment to the rules on the taxation of agricultural companies other than agricultural partnerships, which can no longer choose to pay income taxes based on the cadastral income of agricultural land cultivated, as is traditional for individual farmers, and will therefore be taxed according to the budget.
The entrepreneur agricultural proprietors and partnerships farming will continue instead, also from 2015, to pay income taxes based on the cadastral income of agricultural lands.
( Avv. Pier Luigi Cantini )