Payments on account for small businesses

The Italian Tax Agency has recently published (in Resolution no. 93/E of November 12, 2019) clarification on the remodeling of payments on account for taxpayers small businesses subject to the new rules and taxpayers on the lump sum flat tax regime (regime forfettaria)  following the issue of Decree no. 124/2019.

That decree changed as from 27 October 2019, the amount of the payment on account of  IRPEF, IRES and IRAP, raising them to 50%, instead of 40% in June to 60%.

More information on payments on account can be read here

The change in the regulations applies to those who were granted a blanket extension of the deadline for paying tax from 30 June 2019 to 30 September 2019 as the Tax Agency and software houses were late delivering the relevant regulations and software.  Those affected are small business, sole traders and the self-employed carrying on any business activity to which the new ISAs apply (whether or not they actually apply ISA’s).

The ISA’s are statistical indices which replace the old sector studies and provide a series of parameters to test the reliability of the contents return and compliance against industry wide performance indices.

It also applies to taxpayers who:

  • apply the flat-rate regime (regime forfettaria);
  • apply the special tax regime for young entrepreneurs and mobile workers;
  • determine income using other types of flat-rate criteria;
  • fall within the other causes of exclusion from the ISAs.

The re-modulation of the amount of the advance payments applies not just to the income taxes due as above but also to

  • IRAP (regional tax on productive activities);
  • the “cedolare secco” the flat 21% tax on rental income;
  • the tax due on the value of real estate located abroad (IVIE)
  • the tax on the value of financial assets held abroad (IVAFE).

Click here to read the Resolution.


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