Budget Law 2022
- Studio Piceci
- 18 Jan 2022
- Reading time: 23 min
Update: May 31, 2022
News n.04/2022
The Budget Law for the year 2022, No. 234 of December 30, 2021, was published in the Gazzetta Ufficiale on December 31, 2021. Important news regarding labor, families and businesses.
Let's summarize the most important ones:
New Irpef rates and methods for calculating tax deductions;
IRAP updates;
Simplifications regarding “Patent Box”;
Repeal of Decree Law No. 157 of November 11, 2021;
Tax credits;
Exemptions and contribution relief to promote stable employment and experimental measures;
Reform of social safety nets;
Measures to promote corporate social responsibility and dialogue in the management of industrial crises;
Extracurricular internships;
Citizenship income and LEPS for non-self-sufficiency;
Ape Sociale.
Regarding other News (such as, for example: tax credit for renewable energy plants, composting plants, contributions for producers of PDO, PGI and organic wine, Sustainable Practices Fund, Superbonus for the construction sector, Facade Bonus and other building deductions, interventions with a view to urban regeneration, tax bills, extension of the tax credit for capital goods, changes to the regulations on revaluation and realignment, extension of the entry into force of the provisions on VAT, reduced Imu for non-residents with pensions and much more), please refer to the text of the Law for anything not expressly indicated in this News.
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1. New Irpef rates and calculation of tax deductions
The following amendments are made to the Consolidated Income Tax Act, No. 917 of 22/12/1986:
The gross tax is determined by applying the following rates to the overall income, net of deductible charges, based on income brackets:
Up to 15,000 euros, 23%;
Over 15,000 euros and up to 28,000 euros, 25%;
Over 28,000 euros and up to 50,000 euros, 35%;
Over 50,000 euros, 43%.
Therefore, the main change concerns the rates to be applied to the relative income brackets, which are reduced from 5 to 4.
The calculation of tax deductions changes, which from January 01, 2022 will be carried out in the following way, according to the following summary scheme:
a) Deductions for income from employment and similar (as per new article 13 TUIR) (summary scheme)
Annual deduction (expressed in euros) | Annual income limit (expressed in euros) |
1.880 | Up to 15,000 (the amount of the deduction cannot be less than 690 euros, or 1,380 euros for fixed-term contracts) |
1,910+((1,190*(28,000-RC)/13,000)) | Over 15,000 up to 28,000 |
1.910 * (50.000-RC)/22.000 | Over 28,000 up to 50,000 |
0 | Over 50,000 |
Deductible amount + 65 euros | Greater than 25,000 but less than 35,000 |
b) New deduction for pension income (art. 13 paragraph 3, letters a), b) and c) TUIR)
Annual deduction (expressed in euros) | Annual income limit (expressed in euros) |
1.955 | For income up to 8,500 (the amount of the deduction cannot be less than 713 euros) |
700 + ((1.255*(28.000 - RC)/19.500)) | Over 8,500 but not 28,000 |
700 * (50.000-RC)/22.000 | Over 28,000 up to 50,000 |
0 | Over 50,000 |
Deductible amount + 50 euros | Greater than 25,000 but not greater than 29,000 |
c) New deduction for income assimilated to that of employed work and other income (art. 13 paragraph 5 letters a), b) if one or more incomes referred to in articles 50, paragraph 1, letters e) fees for intramural freelance activities of NHS employees etc), f) (allowances, attendance fees and other compensation paid by the State, regions, provinces and municipalities for the exercise of public functions etc), g) (allowances received by members of Parliament etc), h) (life annuities and fixed-term annuities established for consideration other than those with a social security function) and i) (other periodic allowances), with the exception of those deriving from the periodic allowances indicated in article 10, paragraph 1, letter c), among the deductible charges, 53, 66 and 67, paragraph 1, letters i) and l)
Annual deduction (expressed in euros) | Annual income limit (expressed in euros) |
1.265 | Up to 5,500 |
500 + ((765*(28.000 - RC)/22.500)) | Over 5,500 up to 28,000 |
500* (50.000-RC)/22.000 | Over 28,000 up to 50,000 |
0 | |
Over 50,000 Deductible amount + 50 euros | Greater than 11,000 but not greater than 17,000 |
d) Tax deductions for dependent family members
The reform regarding tax deductions for dependent family members is dictated by Legislative Decree No. 230 of December 21, 2021, which introduced the Single Universal Allowance as a form of support for families with dependent minor children and, under certain conditions, for dependent children of legal age up to the age of 21. The disbursement of the Allowance, which will commence on March 1, 2022, will result in the elimination of Family Allowances and tax deductions for dependent children from paychecks, as they are replaced by the Single Universal Allowance, which will be disbursed directly by INPS.
Both the temporary allowance (Assegno Ponte) and the tax deductions for the aforementioned dependent family members will continue to be recognized in paychecks until February 28, 2022. Effective March 1:
tax deductions for dependent children aged 21 or older will remain;
no increase in the tax deduction (amounting to 400 euros) will be recognized for each child with a disability pursuant to Law No. 104/1992, nor for those with more than three dependent children (an increase of 200 euros for each child starting from the first);
the additional tax deduction for those with at least four dependent children will be eliminated.
Please refer to our News on the Single Universal Allowance for further detailed information.
e) Supplementary Tax Treatment
Regarding the supplementary treatment of income from employed and similar work, as provided for, pending a revision of income support instruments, by Decree Law No. 3 of February 5, 2020, converted with amendments into Law No. 21 of April 2, 2020, it is granted for incomes up to 15,000 euros (if the gross tax, calculated according to the provisions of the legislator and with the foreseen exclusions, is higher than the deduction due pursuant to Article 13, paragraph 1 of the TUIR).
The supplementary treatment is also granted if the total income is higher than 15,000 euros, but not higher than 28,000 euros, provided that the sum of the deductions referred to in Articles 12 and 13, paragraph 1, the deductions referred to in Article 15, paragraph 1, letters a) and b) and paragraph 1 ter of the TUIR, limited to the expenses incurred as a result of loans or mortgages taken out until December 31, 2021, and the installments relating to the deductions referred to in Article 15, paragraph 1, letter c) and 16-bis of the TUIR, as well as those relating to the deductions provided for by other regulatory provisions, for expenses incurred up to December 31, 2021, is of an amount higherthan the gross tax.
The supplementary treatment is granted for an amount not exceeding 1,200 euros, determined in an amount equal to the difference between the sum of the deductions listed above and the gross tax.
By way of example, we list the deductions to be taken into consideration for the purposes of calculation:
Tax deductions for dependent family members (limited to those that remain in effect);
Tax deductions for income from employed and similar work;
“for interest and related charges paid as a result of agricultural loans or mortgages (limited to charges incurred as a result of loans or mortgages taken out until December 31, 2021);
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