The "Tax Decree" has been converted into law

With the conversion of Legislative Decree no. 124/2019 containing "Urgent provisions on tax matters and for unavoidable needs", the "Connected to the 2020 Finance Law Act", no. 157/2019, in force since December 25, 2019, was published in the Official Journal no. 301 of December 24, 2019. As usual, several amendments were made to the original text whan it has been converted into law.

The main changes are summarized below.

Offset tax credits

After the amendments made to articles 17 of Legislative Decree no. 241/97 and article 37 of Legislative Decree no. 223/2006, regarding credits accrued as of 2019, the offsetting of taxes (IRPEF-IRES-IRAP credits) has been aligned with the provisions for VAT purposes. As a result, for amounts in excess of 5.000 Euro per year the offsetting is possible starting from the tenth day after the filing of the tax return.
The IRPEF - IRES - IRAP credit of 2019 can no longer be used for offsetting if the tax return has not been filed.

Limitation to cash payments  

A reduction of the threshold for cash payments has been confirmed. From July 1, 2020 until December 31, 2021, no single cash payment equal to or exceeding the threshold of 2,000 Euro is allowed. Besides,  starting from January 1, 2022, the threshold will be reduced to 1,000 Euro.

Change to down payments for taxpayers liable to isa

As from October 27, 2019, for entities that carry out activities for which ISA (synthetic index of reliability) has been provided for, it is established that each IRPEF -IRES - IRAP down payment must be paid in two equal instalments (50 per cent), without prejudice to what has already been paid with the first instalment, calculated at 40 per cent. Therefore, if the first instalment has already been paid at 40 per cent, the total down payment of the year will be 90 per cent.

Withholding tax and offsetting in contracts/subcontracts

Italian residents who engage contractors or subcontractors  for the carrying on of one or more works/services for a total annual amount exceeding 200,000.00 Euro, must request from the contractors and subcontractors copies of the F24 forms stating the payments of withholding tax applied on income from employment and of the regional/municipal IRPEF surtax withheld.
The contractor/subcontractor is obliged, within 5 days after the payment deadline, to provide the client with the F24 forms and a list of all the workers, identified by means of the tax code, employed in the previous month directly in the execution of the works/services, specifying the hours worked by each worker, the amount of remuneration paid in relation to the service linked to that service and, lastly, details of the tax withholdings made in the previous month in respect of that worker, with separate indication of those relating to the service entrusted by the client.

Extension of active tax repentance (ravvedimento) 

With the repeal of paragraph 1-bis of Article 13 of Legislative Decree no. 472/97, which limited the application of active repentance only to certain types of taxes with precise penalty reductions, the latter are now extended and applicable to all types of taxes.

Filing of data concerning cross-border transactions (esterometro) 

It is provided that the filing of the so-called "esterometro" is no longer carried out by the last day of the month following that of issue / receipt of the invoice. With the amendment of paragraph 3-bis of art. 1 of Legislative Decree no. 127/2015, the transactions are filed quarterly, by the end of the month following the quarter of reference.

Stamp duty on electronic invoices

There is a new deadline for the payment of stamp duty on electronic invoices: from quarterly to half-yearly (on 16. June and 16. December each year). This happens, however, only if the amount due does not exceed the threshold of 1,000.00 Euro per year. It is also provided that in case the taxpayer fails to pay the stamp duty in full, or pays after the deadline, the Revenue Agency will send a communication indicating the actual amount due including penalties and interest.

Lottery of the receipts

As established by art. 1, paragraph 540 of the 2017 Finance Law Act, as of January 1, 2020, individual resident taxpayers of legal age who purchase goods or services from  retail businesses  (who file the daily fees electronically to the Revenue Agency), are entitled to participate in a price draw national lottery. The provision will be effective from July 1, 2020.



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