The Italian national social security institute has issued an update to the rates, maximum and minimum thresholds, instructions for the sharing of social security burden applicable to the self-employed for 2020 in circular no. 12 of 3 February.
“Collaborators” (ie. those with co.co.pro and co.co.co style contracts) a total rate of up to 34.23% (33.00 + 0.72 +0.51 additional rates) will apply. One third of this is borne by the collaborator, two thirds by the “employer”/client.
For other self employed individuals, registered with the gestione separata , the rate is 25.72% (25.00 IVS + 0.72 additional rate).
For individuals who are retired and/or covered by with other compulsory social security schemes, the rate is 24%.
These rates remain unchanged compared to 2019 and 2018.
The additional rates consist of:
0.72%, for the financing of the cost resulting from the extension of maternity protection, family allowances and sickness benefits;
0.51% for measures for the protection of non-business self-employment and measures to encourage flexible working hours and places of employment.
Collaborators see their employer/client withholding tax on payment of their compensation. The employer/client must pay the contributions withheld and their own contributions over to the tax authorities, on or before the 16th day of the month following payment of remuneration.
Professionals must make the payment, using the F24 form respecting the same deadlines as those applicable to payment of income taxes.
The circular also specifies that pursuant to Article 51 of Presidential Decree no. 917 of December 22, 1986 (the Italian Tax Code), amounts paid by the 12th of January are considered to have been received in the previous tax period (the extended cash principle). It follows that the payment of the contributions in favour of the collaborators referred to in Article 50, paragraph 1, letter c-bis, whose compensation, pursuant to Article 34 of Law no. 342 of 21 November 2000, is assimilated to income from employment, refers to services rendered by 31 December 2019 and therefore the contribution rates and thresholds applicable to 2019 tax year must be applied.
The slide below (re-load the page if it does not appear first time) summarises the rates and shows the maximum and minimum thresholds.