Covid-19 has marked a turning point in the digitization of many spheres of existence, at work as well as in social life and consumption. With effects that look set to continue, just as teleconferencing continues and online sales continue to grow, including in the food sector.
Digital innovation is thus a choice of strategy that deserves attention now more than ever. All the more so where the incentives made available by the Italian government are considered. After reviewing tax incentives on investments and contracts made with innovative startups and SMEs, an in-depth look at the Industry 4.0 plan is proposed. And the opportunities provided by our team.
Industry 4.0, the market in Italy
Investment in the digital sector has seen significant growth to 3.9 billion euros in 2019 (+22 percent). A growth rate identical to that of investments onprecision agriculture, which totaled € 450 million in 2019.
The Milan Polytechnic Observatory, highlights how the growth underway in the early 2020s (+20-25%) has suffered a setback as a result of the lockdown. The gloomier forecasts thus assume a contraction (- 5-10%) for the current fiscal year, the optimistic ones a turnover equal to that of 2019.
The coronavirus emergency has deeply scarred Italian businesses, about 40 percent of which estimate a loss of more than 20 percent in turnover. Observatory director Giovanni Miragliotta points out, moreover, that ‘investment in digital has been the tool for responding to the health emergency, and according to the vast majority of industries this experience will eventually prove to be an accelerator.’
2.3 billion euros of investment, or 60 percent of the total, was dedicated in 2019 to connectivity and data acquisition(Industrial IoT) projects, divided into:
– Analytics (€ 630 million),
– Cloud Manufacturing (€ 325 million),
– Advanced Automation (€ 190 million),
– Additive Manufacturing (€ 85 million),
– Advanced human-machine interface technologies (€55 million).
Consulting and training on Industry 4.0 projects then totaled about 255 million euros (2019, up 17 percent from 2018).
Training 4.0. Goals
The measure is aimed at stimulating business investment in staff training on subjects related to technologies relevant to the technological and digital transformation of enterprises. The courses must fit within the scope of the technologies defined by the Enterprise 4.0 plan and the areas envisioned by the maneuver. In relation to the business areas attributable to:
– sales and marketing,
– Information technology and digital technologies,
– production technologies.
Training activities are aimed at acquiring and consolidating skills and knowledge on big data and data analytics, cloud and fog computing, cyber security, simulation, and cyber-physical systems. As well as rapid prototyping. visualization systems, virtual reality (VR) and augmented reality (AR), advanced and collaborative robotics, human-machine interface, additive manufacturing (or 3D printing). Internet of things and machines, digital integration of business processes.
Tax credit
The tax credit can only be used as an offset from the tax period following the tax period in which the eligible expenses were incurred. It is recognized as a percentage share of expenses related to employees engaged in eligible training activities, limited to the business cost related to training hours or days. In the measures of:
– 50% of eligible expenses, up to a maximum annual limit of €300,000, for small businesses,
– 40% of eligible expenses, subject to a maximum limit of €250,000/year, for medium-sized enterprises,
– 30 percent of eligible expenses, up to a maximum annual limit of €250,000, for large enterprises.
The tax credit measure is increased for all enterprises to 60 percent, subject to annual caps, if eligible training recipients fall into the categories of disadvantaged or very disadvantaged employees (1,2).
The following are allowed to the tax credit also any expenses related to employees routinely employed in one of the business areas identified in Annex A to Law 205/17, who participate as teachers or tutor to eligible training activities, up to a limit of 30 percent of the employee’s total annual compensation.
Beneficiary enterprises
The measures apply to all enterprises resident in the territory of the state, including permanent establishments of nonresidents, regardless of their legal nature, economic sector, size, accounting regime and income determination system for tax purposes.
Enterprises in voluntary liquidation, bankruptcy, compulsory liquidation, composition with creditors without going concern, other bankruptcy proceedings are excluded. Also excluded are companies receiving disqualification sanctions under Leg. 231/01, Article 9(2).
Compliance with workplace safety regulations and the proper fulfillment of obligations to pay social security and welfare contributions on behalf of workers are conditions for the benefit under consideration.
Methods of access
Training expenses incurred in the tax period following the one in progress as of 12/31/19 are eligible for the benefits indicated, with obligations to:
– Certified accounting records,
– Preservation of an illustrative report of the way of organization and the contents of the training activities carried out.
Enterprises wishing to take advantage of the facility must provide notification to the Ministry of Economic Development. Reporting is required for the sole purpose of acquiring the information necessary to assess the progress, dissemination and effectiveness of facilitation measures.
The training activity must:
– Be allocated to the employees of the beneficiary enterprise. Employees are defined as staff holding an employment relationship, including fixed-term employees, and apprentices,
– affect one or more of the following business areas: sales and marketing, information technology and techniques, production technology (in the sectors listed in Annex A of the 2018 Budget Law).
Online courses
According to In the circular, classes can be conducted in the mode e-learning or online, provided that enterprises adopt suitable control tools to ensure, with a sufficient degree of certainty, the effective and continuous participation of personnel engaged in training activities (Mi.S.E. Circular No. 412088, Dec. 3, 18). In particular, the following must be prepared:
– At least 4 verification moments (through multiple-choice questions) for each hour of the course. If the user answers incorrectly, the user will have to revise the part of the course to which the question referred and answer a further question, of different content, at a different and unpredictable time. Enjoyment of the course can continue only after receipt of correct answer,
– a final verification time, where the learner answers exactly at least one question out of the two that must be proposed for each of the hours of class in which the course is divided.
Our services
Our team from Wiise S.r.l. benefit company, Safos cooperative society and Wiise Chain S.r.l. benefit company is available to design and execute training plans for workers involved in digital innovation processes and implementation of new technologies. Turnkey services, provided throughout the country, are as follows:
– analysis. Verification of corporate training needs in order to formulate the best training proposal to innovate skills and processes,
– orientation. Overview and comparison of the enabling technologies most consistent with the needs, among those under the measure,
– training. Preparation and implementation of training plans consistent with needs analysis and the characteristics of the enabling technologies adopted or to be adopted.
Educational offerings include courses on:
– traceability and
blockchain
,
– Digital sales platforms(ecommerce),
– Ways of digitally integrating business processes,
– IoT technologies, internet of things and machines,
– cyber security,
– Big data, analysis, and management.
Dario Dongo and Arcangelo Li Calzi
Notes
(1) The Decree of the Minister of Labor and Social Policy 17.10.17 qualifies individuals who meet one of the following requirements as disadvantaged employees :
(a) have not been in regular paid employment for at least 6 months, or in the past 6 months have not been in employment attributable to an employment relationship lasting at least 6 months. As well as those who in the last 6 months have been engaged in self-employed or parasubordinate work from which income is derived that corresponds to gross tax equal to or less than the deductions due under Article 13 of the TUIR,
(b) are between the ages of 15 and 24,
(c) have not obtained an upper secondary education degree or a vocational education and training qualification or diploma falling within the third level of the International Classification on Education Levels. As well as those who have held one of the above qualifications for no more than 2 years and have not had a first regular gainful employment as defined in item 1,
(d) have reached the age of 50,
(e) they are 25 years of age or older and support the household alone, as they have one or more dependents under Article 12 of the TUIR,
(f) are employed in sectors and occupations characterized by a male-female disparity rate that exceeds the average male-female disparity by at least 25 percent, annually identified by ministerial decree, and belong to the underrepresented gender,
(g) belong to linguistic minorities historically settled on Italian territory and to those minorities that are officially recognized in Italy on the basis of specific measures and that demonstrate the need to improve their linguistic and professional skills or work experience in order to increase their prospects of access to stable employment
(2) According to the decree mentioned in footnote 1, highly disadvantaged workers are those who:
– Have been without regular paid employment for at least 24 months, as defined in 1 above,
– Have been without regular paid employment for at least 12 months, as defined in 1, and belong to one of the categories in 2 to 7.
Dario Dongo, lawyer and journalist, PhD in international food law, founder of WIISE (FARE - GIFT - Food Times) and Égalité.
