Budget Law: news from January 1, 2020

Law No. 160 of December 27, 2019 (the so-called "2020 Budget Law"), which came into force on January 1, 2020, was published on December 30, 2019. The provisions that we consider of greatest interest are listed below.

Fund for the reduction of the tax burden on employees

(article 1, paragraph 7)

In order to reduce the tax burden on natural persons, a fund called "Fund for the reduction of the tax burden on employees" is established in the budget of the Ministry of Economy and Finance (MEF), with an allocation whose amount will be

• 3 billion euros for 2020;

• 5 billion euros for 2021.

The interventions aimed at the aforementioned reduction will be implemented with future specific regulatory measures, within the limits of the allocated resources.

Incentives for the hiring of first-level (or dual) apprentices

(article 1, paragraph 8)

For first-level apprenticeship contracts for professional qualification and diploma, upper secondary education diploma and higher technical specialization certificate, if:

• stipulated during the year 2020

• for employers who employ a number of employees equal to or less than 9 (nine)

a contribution relief equal to 100% of contributions is recognized, limited to the first three years of the contract, in order to promote youth employment.

For apprenticeship periods after the third year, the 10% rate remains unchanged.

Review of INAIL rates

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