Tax Benefits for Those Investing in Innovative Startups and SMEs: The Guide for 2024

Investing in innovative startups and SMEs not only offers potential gains, but also significant tax breaks. In this guide, we explain how to make the most of these benefits in your 2024 tax return. If you are an investor looking for opportunities that combine income and tax savings, this article is perfect for you.

Introduction to Tax Benefits for Startups and Innovative SMEs

Investments through equity crowdfunding in the innovative startup and SME market offer extraordinary tax advantages in addition to the possible returns. Thanks to Mamacrowd, you can easily navigate the complex world of taxation, maximizing your tax savings.

Why Invest in Innovative Startups and SMEs?

Investing in an innovative startup or SME offers numerous benefits, including:

• Potential gains: innovative startups have great growth potential.
• Diversification: adding innovation to your portfolio makes it more diversified and resilient.
• Social impact: you actively participate in innovation, supporting ideas that can change the world.
• Tax benefits: significant tax benefits for investors.

Main Tax Benefits for Investors in Innovative Startups and SMEs

1. 30 percent IRPEF deduction

One of the main tax benefits is the 30 percent IRPEF deduction on investments in startups and innovative SMEs, up to a maximum of 1 million euros per individual. For example, if you invest €10,000, you can deduct €3,000 from your income taxes.

Requirements for the IRPEF Deduction:

• Direct or indirect investment.
• Holding period of at least three years.
• Reserved for individuals.

2. IRES Deduction for Company

Corporations that invest in innovative startups can take a deduction from their IRES taxable income equal to 30 percent of the amount invested, with a maximum limit of 1.8 million euros per tax period.

Requirements for IRES Deduction:

• Investment maintained for at least three years.
• Adequate supporting documentation.

3. Capital Gains Relief

We would like to preface this rule with the fact that it is not yet in force at the moment, as it has not received authorization from the European Community (provided for in Paragraph 4 of Article 14 of Decree Law 73/2021, the so-called Supports bis decree). We will keep you informed when it comes into effect.

The relief concerns capital gains realized by investors as natural persons, for investments made between 06/06/2021 and 31/12/2025.

Requirements for the Capital Gains Exemption:

• The investment subject to the capital gain must be held for at least 3 years to have the exemption on the capital gain
• If the investment is divested before the 3 years, the exemption is obtained only if the proceeds are reinvested within one year of the divestment, again in innovative startups or SMEs, and in any case by 31/12/2025
• Documentation proving divestment and reinvestment.

How to Take Advantage of the Benefits in the Income Tax Return for 2024

To benefit from the tax breaks

Here are the key steps to take advantage of the tax benefits for the 2024 tax return for 2023 data:

• Gathering documentation: gather all documentation related to the investments made.
• Tax return: enter the amounts invested in the appropriate sections for IRPEF deductions or IRES deductions.
• Request certification from startup: request certification of investment in innovative company.
• Maintaining the investment: do not divest the investment before three years.

Conclusion

Thanks to Mamacrowd, you now know all the benefits and how to make the most of them in your tax return for the current year. Remember to gather all the necessary documentation and consult an expert to maximize your tax savings. On your Mamacrowd portfolio, from this year, you will find the certification of investment in innovative company, issued by the company itself, as well as the pitch to consult the main information of the offer.

Don't waste time, visit Mamacrowd and discover the best investment opportunities in innovative startups!

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