Enactment of the Fiscal Decree into Law
Updated: 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), the following are the main changes of particular interest to employers and withholding agents, as approved or amended during the conversion process.
In addition, the document also includes clarifications on “withholdings and offsets in contracts and subcontracts” provided by the Italian Revenue Agency.
Offset of Tax Credits Accrued Since 2019
It has been confirmed that VAT credits (annual/quarterly), IRPEF credits, IRES credits, and IRAP credits—whose amounts exceed 5,000.00 euros per year—may be offset starting on the tenth day following the date of filing the annual return or the application showing the credit.
Under the new provisions, the 2019 IRPEF/IRES/IRAP tax credit can therefore be offset following the filing of the relevant tax return and no longer as of January 1, 2019. Therefore, if you file your tax return on September 30, 2020 (tax year 2019) showing a credit exceeding 5,000.00 euros, that credit will be available starting October 10, 2020, exclusively through payment via FormF24 via the Entratel/Fisconline electronic services.
In order to offset credits related to direct and substitute taxes, as well as the IRAP credit, on Form F24, the following conditions must therefore be met as of January 1, 2020:
A) a advance filing of the tax return showing the tax credit for the following categories: substitute taxes, income taxes and surcharges, IRAP, and VAT;
B) the filing of Form F24 via the Revenue Agency’s online services, for credits related to: substitute taxes, income taxes and surcharges, IRAP, VAT, tax breaks, and credits indicated in the RU section of the income tax return.
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