The revaluation of investments and land in 2020

The Budget Law 2020 (L. 160/2019), in paragraphs 693 and 694, provided for the reopening of the terms of revaluation of unlisted shareholdings and land, modifying article 2, paragraph 2, Legislative Decree 282/2002, converted, with modifications, by Law 27/2003.

Following this law, natural persons, simple companies, non-commercial entities and non-resident subjects without permanent establishment in Italy can evaluate the convenience of completing this revaluation; therefore, if there is the intention to proceed with the sale of these assets, they can revaluate the cost or purchase value of the unlisted equity investments and the land owned at January 1, 2020 outside the company regime. .

The restatement of the value in fact allows to “release” all or part of the amount of the latent capital gain, taxable for personal income tax purposes (article 67, paragraph 1, letter a – c-bis Tuir), in order to reduce the impact tax for those who must proceed to the disposal of equity investments or land.

To complete the revaluation, and therefore to be able to use the new “restated” value as the taxable base, instead of the historical cost, it is necessary:

  • have an estimate report prepared by a qualified professional certifying the value of the equity investment and land on January 1, 2020 prepared by June 30, 2020;
  • always, by June 30, 2020, the payment of the substitute tax, equal to 11%, both for the participations (qualified and not) and for the land, through model F24 (tax code “8055”). Payment can be made in a single solution or in installments with a maximum of three equal annual installments, at the following deadlines: first installment:
  • June 30, 2020; second installment:
  • June 30, 2021; third installment:
  • June 30, 2022.

Obviously for the installments subsequent to the first, interest must be calculated in the amount of 3% per annum, to be paid simultaneously with each installment.

The previous revaluations were certainly more advantageous because they provided for reduced and diversified tax rates according to the type of participation, while the current revaluation provides for a single substitute tax rate equal to 11%.

Based on what is specified in circular 47 / E / 2011, the revaluation is considered completed with the payment of the entire or first installment of the substitute tax in the terms indicated above, and from that moment the taxpayer can immediately take advantage of the new value of purchase for the purpose of determining any capital gain referred to in Article 67 of the Tuir.

On the contrary, if the payment of the entire amount or the first installment is made after the deadline (30 June 2020), the revaluation cannot be considered completed; as a result, the taxpayer cannot use the restated value in order to determine the possible capital gain, but at the most, he can request a refund of what has actually been paid.

In the same circular, however, it is established that, where the delay and the omitted payment instead concerned the installments subsequent to the first, the taxpayer can always regularize the violation using the institution of active repentance.


by Stefano Pignatelli

 Chartered Accountant in Rome.