Italian National Report: Taxation of companies in economic and financial distress

The instability and uncertainty caused by the spread of the COVIDovid-19 pandemic, arguably one of the worst international crises since World War II, pushed many companies into an extraordinary and unexpected economic and financial crisis. In numerous productive sectors, the prolonged halt in production activities and the a reduction in the levels of demand and consumptions led to a delay in the collection of receivables and a subsequent increase in the losses expected on the same. Therefore, the tax regime for losses on receivables is of particular importance within the scope of tax regulations for business crises, given that the latter represents an event that can generate negative items deductible from income.