PIRELLI SIGNS PATENT BOX, BENEFIT FOR 3-YEAR PERIOD 2015-2017 AT AROUND 54 MILLION EURO
Ceo to propose to Board that these resources are used to further focus on the High Value segment
Pirelli announces that today it signed a preliminary agreement with the Italian taxation office for access the tax facilitations of the Patent Box, with reference to the fiscal years 2015-2019.
The estimated tax benefit for the 3-year period 2015-2017 will be around 54 million euro and will be booked in the financial statement for the current year taking into account the exact figure, now being determined, of the benefit for 2018. The Chief Executive Officer of Pirelli, Marco Tronchetti Provera, will propose to the Board of Directors meeting called for November 14, 2018 to review the results for the nine months ending on September 30, 2018, that these resources are used to further focus on the High Value segment through a more rapid reduction of the standard segment and related costs.
The calculation of the benefit for 2019 will, instead, be done when the results for the relative period are being prepared.
The average consolidated tax rate expected for the period 2018-2020 will be in the 26% to 28% range, in line with the average consolidated rate for the period of the 2017-2020 industrial plan presented for the IPO and then estimated at below 30%.
The Patent Box is system of tax breaks benefitting companies which use, directly or through concessions, intellectual works, industrial patents, trademarks, designs, models and processes, formulae and information relative to experience acquired in the industrial, commercial or scientific fields which can be protected by law. The breaks will last five years (2015-2019) and can be renewed at the end of the period through the signing of a new agreement.