Suspension of depreciation and amortisation in the 2021 and 2022 financial statements without limits

The 2022 National Financial Law (Law No. 234/2021) had extended for the 2021 financial statements the possibility of suspending up to 100 per cent of the amortisation cost of tangible and intangible assets exclusively for those entities that in the 2020 financial statements suspended the entire part of the amortisation cost (a subjective limit for the application of the extension that excluded all entities that opted for a partial suspension).

Subsequently, the “Milleproroghe” Decree (Decree-Law 228/2021), included in the conversion of Law 15/2022, amended what had been introduced by the 2022 National Financial Law by confirming the extension of the suspension of depreciation and amortisation for the 2021 financial statements and eliminating the subjective limits for the application of the extension itself (therefore, the 100 per cent suspension of the depreciation charge in the 2020 financial statements is no longer required in order to opt for the suspension also in the 2021 financial statements). 

Now, with the “Decreto Sostegni ter”, the legislator has once again intervened in the regulation, providing for the possibility for entities that do not adopt the international accounting standards to suspend up to 100 per cent of the annual amortisation of the cost of tangible and intangible assets, maintaining their book value, as resulting from the last duly approved financial statements. 

The extension is granted both for the financial year in progress as of 31 December 2021 and for the following financial year, i.e. the one in progress as of 31 December 2022 and therefore, for “solar” entities, for the financial statements of 2021 and 2022.

Consequently, following the introduction of this last amendment, the possibility of opting for the suspension of depreciation allowances is confirmed for all entities that availed of this option in 2020, regardless of whether the suspension was total or partial and regardless of whether it concerned all or only some fixed assets, and the option is extended not only for 2021 but also for the 2022 financial statements.

Finally, it should be noted that the rules of application remain unchanged. Therefore, the obligation to allocate profits corresponding to the suspended depreciation amount to the unavailable reserve in Equity remains and the specific disclosure obligations in the Notes also remain. 

From a tax point of view, any option to suspend depreciation does not affect the possibility of deducting the depreciation (including the suspended part) for IRES and IRAP purposes, even without the accrual in the profit and loss account of the year.