Aliquote Iva, flat tax e Ires: le novità

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Late yesterday evening, the Council of Ministers approved the Update to the 2018 Economic and Financial Document (NaDef). The document’s main points are outlined below—in line with the government contract—which concern, among other things, the flat tax, safeguard clauses, citizen’s income, and the Fornero law. Considering the impact of these measures on business strategies, our firm provides specialized consulenza societaria to help companies navigate the new regulatory landscape. For a detailed analysis of the public finance targets and economic projections, you can consult the official Update Note to the DEF (NaDef) on the Ministry of Economy and Finance website.

A legislative decree introducing new rules regarding electronic invoicing for public administrations and autonomous administrations was also preliminarily approved, requiring them to receive and process electronic invoices issued for public procurement contracts that comply with the European public procurement standard.

 
 
 

The CONTENT of the UPDATE NOTE to the 2018 DEF

SAFEGUARD CLAUSES

With the “sterilization” of the VAT clauses, the VAT increases expected to take effect from January 1, 2019, are eliminated.

FLAT TAX

The flat tax will be phased in gradually. Initially, it will involve “raising the minimum thresholds for the simplified tax regime for small businesses, professionals, and artisans”: a rate of 15 percent is envisaged for revenues up to €65,000 (above this figure, approval from Brussels is required). Over one million VAT numbers are expected to be affected by the measure.

Irpef Reform
Subsequently (probably from 2021) the “flat tax” will also be extended to private individuals, probably with two rates:

  • 23 percent for incomes up to 75 thousand euros;
  • 33 percent above that threshold.

IRES

The reduction in IRES on reinvested profits, including in new hires, has been confirmed.

INDUSTRY 4.0 PLAN.

The Industry 4.0 plan will also be confirmed in 2019.

HYPER-DEPRECIATION

It will also apply to goods delivered by 30 June 2020, provided that:
  • the contract was signed by 31 December 2019;

And

  • a deposit of at least 20 percent of the total amount must be paid by that date.

Increase

  • 180 percent for investments of no more than 500 thousand euros;
  • 150 percent for investments between 500,000 and 2 million euros;
  • 100 percent for investments between 2 and 10 million;
  • 50 percent for investments between 10 and 30 million.

CITIZENSHIP INCOME

The introduction of a citizen’s income is planned, along with the associated reform and strengthening of employment centers. €10 billion will be allocated for this purpose.

CITIZENSHIP PENSION

In line with what majority leaders anticipated in recent days, the Update provides for the introduction of a citizen’s pension.

SAVERS VICTIMS OF BANKING CRISIS

Resources are expected to be allocated to compensate savers harmed by banking crises.

FORNERO LAW

The Government will prepare a pension reform aimed at overcoming the Fornero Law, in order to encourage the hiring of young people.

SUPPORT for the ECONOMY

  1. Among the points highlighted in the  press release  issued overnight by Palazzo Chigi, “policies to relaunch key sectors of the economy, primarily advanced manufacturing, infrastructure, and construction” were also announced.
  2. The introduction of a platform to encourage the use of venture capital, involving pension funds and social security funds, has been confirmed. The SME Guarantee Fund will also be strengthened.

TAX PEACE
Although not mentioned in the press release issued on the sidelines of the Council of Ministers meeting, the introduction of the “tax peace”—the massive debt relief envisaged in the government contract—seems to be confirmed as part of the 2019 Budget. Currently, it appears to have a limit of €100,000.

ELECTRONIC INVOICING IN PUBLIC PROCUREMENT
The Council of Ministers also approved (preliminary approval) a legislative decree that—in implementation of  Directive 2014/55/EU of 16 April 2014  —introduces new rules regarding electronic invoicing for public administrations and autonomous authorities. Specifically, the measure mandates the receipt and processing of electronic invoices issued for public procurement contracts that comply with the European public procurement standard. The  Government press release  specifies that these obligations, “without establishing any threshold, apply to all invoices sent to public administrations.”

The 2019 Budget bill must be submitted to the Chambers by October 20, 2018.