Regime Forfettario – FAQs

Can I sign up for the regime forfettario if I know I am going to be billing more than Euro 65k in the next year?

Yes. The rules say that if you go over the threshold in any year, you will go onto the normal regime starting with the next following year.

How do I know what my ATECO Code is?

We can help you to identify your Ateco code.  This is an important issue as your Ateco code will determine the lump sum deduction to which you are entitled, as well as the social security regime applicable to your activity.

Billing in foreign currency (non Euro)

FlexTax does not at present handle billing in a currency other than Euro. The best approach is to:

a) Issue a “proforma invoice” – this can be in excel format, word or just an email showing the total amount to pay.

b) As soon as you receive payment you should issue an invoice via Flextax for the Euro amount you actually received – the foreign currency amount should be converted using the Bank of Italy exchange rate prevailing on the day of receipt (or the immediately preceding working day.  Alternatively if you convert into Euros using your bank account, you can use that rate as long as you choose this method consistently. The Flextax invoice should so the gross amount received without any deduction for bank/paypal fees or currency exchange fees.

c) Print out the Flextax invoice, add the stamp (bollo) to the hard copy you print out, cancel the stamp and keep the hard copy.

Do I need to keep a listing of my costs?

No, you costs are not tax deductible. In place of the usual procedure – ensuring your are issued with a tax invoice/till receipt etc – under the regime forfettario you get a lump sum deduction for costs – typically  22% or 33% depending on your Ateco code and actual activity.  If your costs are likely to exceed that amount, then the regime forfettario may not be appropriate for you.

How much tax will I pay

See this table for an example. With Flextax tools you can do a more tailored simulation of your tax and social security liabilties.

Example of Tax and Social Security Due under Regime Forfettario
Ateco Code70.22.09
Ateco DescriptionAltre attivita' di consulenza imprenditoriale e altra consulenza amministrativo-gestionale e pianificazione azienda
Forecast Income€ 30,000
Social Security Basis€ 23,400
Social Security25.72%€ 6,018
Taxable income€ 17,382
Tax5%€ 869
Total Tax and Social Security€ 6,88823%
Net Income€ 23,112

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