Enactment of the tax decree into law

Subject: Conversion into law of the tax 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 main innovations of particular interest to employers/withholding agents are reported, as approved or modified during the conversion.

In addition, clarifications are also provided on “withholdings and compensations in contracts and subcontracts” provided by the Revenue Agency.

Compensation of tax credits accrued from 2019

The possibility of offsetting VAT credit (annual/quarterly), IRPEF credit, IRES credit and IRAP credit, the amounts of which are higher than 5,000.00 euros per year, starting from the tenth day following the date of submission of the annual declaration or the application from which the credit emerges, has been confirmed.

Based on the new provisions, the 2019 IRPEF/IRES/IRAP credit can therefore be offset following the presentation of the related declaration and no longer from January 1, 2019. Therefore, by submitting the income tax return on 30.09.2020 (tax year 2019) from which a credit of more than 5,000.00 euros results, said credit can be used from 10.10.2020 exclusively through the payment of Form F24 via the Entratel/Fisconline telematic services.

To use credits relating to direct and substitute taxes, as well as IRAP credit, in offsetting within the F24 form, it is necessary to comply with the following conditions starting from January 1, 2020:

A) a prior submission of the declaration from which the credit emerges, related to the following categories: substitute taxes, income taxes and surtaxes, IRAP, and VAT;

B) the submission of the F24 form through the Revenue Agency's online services, for credits relating to: substitute taxes, income taxes and surtaxes, IRAP, VAT, concessions and credits indicated in the RU section of the income tax return.

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