Italy – Deadlines for Income Tax Returns
Modello Redditi PF
The tax return is called “PF” standing for Persone Fisiche (individuals). Modello in Italian means “Form”. The PF form is for use by individuals who are not able to present the simplified tax return (the modello 730) as well as certain other entities.
The tax return is divided into sections according to the different types of income to be reported. It has a section for the claiming of tax deductible/creditable items such as medical and energy saving plant installation costs.
It also has a section for the declaration of foreign assets and the payment of the relevant wealth taxes. If you have filed a Form 730, then you must file the Redditi PF form simply in order to complete these foreign asset reporting requirements.
Deadline For Presentation
The deadline for filing the return is 2 December 2019. The original deadline of 30 September was recently extended to 30 November, but as this is a Saturday, Italian law automatically postpones the deadline to 2 December 2019.
Deadline for paying Income Taxes
The first deadline is on 1 July 2019. This is the due date for:
- The balance of income tax, and regional/communal income tax due on taxable income received in the calendar year to 31 December 2018;
- The balance of wealth tax due on foreign bank accounts, investments and financial assets held during the course of 2018;
- The first payment on account of tax on 2019 income (generally 40% of the net tax due for 2018).
The taxpayer has the option of making the payment late with a surcharge of 0.4% of the amounts due.
The 2018 tax due and the first payment on account can be paid in installments with a small surcharge.
A second payment on account is generally due on 30 November equal 60% of the 2018 liability. A reduced payment on account may be made. This would be advantageous to avoid a credit position (i.e. overpaying tax and having to make a claim for refund) where for example the taxpayer no longer has a particular income source or where income for 2019 is expected to be lower than it was in 2019. Penalties apply if an underpayment is made (e.g. if actual income turns out to be more than expected, but the penalty can be reduced by spontaneous payment (raveddimento operoso) before any assessment is made by the Tax Agency.
In fact the (raveddimento operoso) procedure allows taxpayers to make payments after these deadlines with a small penalty, providing the taxpayer makes payment of the tax and calculates the relevant penalty and interest for late payment before the Tax Agency takes any action is taken to enforce payment.