Conversion of the tax decree into law
- Studio Piceci
- Jan. 7, 2020
- Reading time: 7 min
Update: March 15, 2022
Subject: Conversion into law of the fiscal decree containing "urgent provisions on tax matters and for unavoidable needs" (Decree Law No. 124/2019)
Following the conversion into law of the decree containing "urgent provisions on tax matters and for unavoidable needs" (Decree Law No. 124/2019), we report below the main changes of particular interest to employers/tax substitutes, as approved or amended during conversion.
In addition, clarifications on "withholdings and offsets in contracts and subcontracts" provided by the Revenue Agency are also reported.
Offsetting tax credits accrued since 2019
The possibility of offsetting VAT credit (annual/quarterly), IRPEF credit, IRES credit, and IRAP credit, whose amounts exceed €5,000.00 per year, has been confirmed, starting from the tenth day following the date of submission of the annual return or the application from which the credit emerges.
Based on the new provisions, the 2019 IRPEF/IRES/IRAP credit can therefore be offset following the submission of the relevant tax return and no longer from January 1, 2019. Therefore, by filing a tax return on September 30, 2020 (tax year 2019) showing a credit of more than €5,000.00, this credit will be usable from October 10, 2020, exclusively through the payment of Form F24 via the Entratel/Fisconline electronic services.F24 form via the Entratel/Fisconline electronic services.
In order to use credits relating to direct and substitute taxes, as well as IRAP credits, for offsetting purposes in Form F24, the following conditions must be met as of January 1, 2020:
A) a prior submission of the tax return showing the credit relating to the following categories: substitute taxes, income taxes and additional taxes, IRAP and VAT;
B) the submission of Form F24 via the Revenue Agency's online services, for credits relating to: substitute taxes, income taxes and surcharges, IRAP, VAT, concessions and credits indicated in the RU section of the tax return.