Giovedì 23 Marzo 2017 - Aggiornato alle 19:00
Musical instruments, the bonus up to 2500 EUR. Italy’s Revenue Agency kicks off the tax incentive to favor the purchase
At the start the bonus up to € 2,500 for students who intend to buy a new musical instrument taking advantage of the fiscal contribution provided for in the Budget Law 2017, in the form of a specific discount to the price charged by the manufacturer or retailer. The Revenue Agency, in fact, is just pointed out the operating rules to follow in order to receive the payments granted to students and the related tax credit accruing to manufacturers and retailers.
The Revenue has a pilot to illustrate the tax skyline for the fiscal incentive – As often happens, it’s demanded to the tax authority to give the green light to the effective implementation of a tax break or tax advantage. In the present case, the Budget Law 2017 (Article 1, paragraph 626, Law 232/2016) has provided, even for the current year, the recognition, in favor of the students, of a one-off fiscal contribution to the purchase of a new musical instrument, consistent with the course of their studies. The same rule defers to a subsequent decision of the Director of Revenue the responsibility for defining the application modalities of the renewed tax incentive. That’s the normative motivation explaining the signing of the Revenue’s latest Ordinance.
The conditions to be part of the fiscal incentive recipients – Students entitled to the contribution must be in compliance with the payment of tuition fees for the year 2016-2017 or 2017-2018, enrolled in musical high school, to pre-academic courses, the courses of the previous system and of the degree courses and second level of the music conservatories, higher institutes for music and in music and dance education institutions authorized to issue degrees of higher education in art, music and dance.
The tax advantage reason – The subsidy is granted for the purchase of a new musical instrument, consistent with the course of study you are subscribed. Annex 2 of the Ordinance Text, contains a detailed list of affordable musical instruments thanks to the fiscal incentive. The measure, however, clarifies that in addition to the detailed instruments, must be considered within the scope of the tax break even those considered "related" or "complementary" to the course studies, according to declarations of compliance with the disciplinary objectives of curricula issued by the respective institutions. Among these, for example, can be included the purchase of a single component of the instrument. On the contrary, the personal computer cannot be consider as a similar or complementary to musical instruments.
How to apply for the tax incentive – The contribution to students is awarded in the form of a discount on the selling price (including VAT), charged by the dealer or manufacturer. To access the incentive, the student interested must apply to his institute, which is required to issue a certificate of inscription, not duplicable, specifically aimed "at this purpose", stating his full name, social security number, year of enrollment as well as the musical instrument consistent with his course of studies. The certificate is set by the school in two copies, one of which must be issued to the student, who is obliged to deliver it to the manufacturer or to the dealer when buying the musical instrument. In turn, the manufacturer or retailer retain the certificate until the date by which the Revenue Agency may exercise the verification activity.
A tax credit for manufacturers or retailers – Correspondingly, to retailers and manufacturers of musical instruments is recognized a tax credit equal to the amount recognized as a contribution to students in the form of discount. To qualify for the tax credit, the dealer or manufacturer, before concluding the sale of the musical instrument, must notify to the Revenue Agency a list of information: his fiscal code; the tax code of the student and the institution that issued the certificate of registration; the musical instrument sold and the selling price inclusive of the contribution and value added tax.
Once communicated such data and info, the system will issue a receipt attesting the accessibility or not to the tax credit, given the budget limitation of 15 million euro, the data integrity and verification of the uniqueness of the assigned bonus to each student.
How to use the tax credit – The tax credit can be used only as a compensation, starting from the second business day following the issuance date of the receipt attesting its availability. The F24 must be submitted exclusively through the electronic service Entratel or Fisconline, otherwise the payment transaction will be refused.
The newly-introduced favorable tax regime for new Italian residents. The one-off annual payment of €100.000 is designed only for foreign income. On income made in Italy will be still applied ordinary tax rates
To clarify and shed light on some headlines appeared in the media, the Revenue Agency points out that individuals wishing to transfer their tax residence in Italy, adhering to the option provided by the Article 24-bis of the Italian Consolidated Law on Income Tax (TUIR), will pay an annual tax of 100 thousand euro solely on the income made abroad, whilst eventual earnings gained in Italy by new-residents will be subjected to the ordinary tax rates applicable in the country.