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Tax Pills

“Relaunch decree” out to restart Italian economy. Below are the main tax measures

tax pills rilancio

The government's 55-billion-euro “Relaunch Decree”, recently approved, aims to revive the Italian economy after the acute phase of the coronavirus emergency. Among the new fiscal measures with a greater immediate impact, in terms of tax cuts, there is the suspension of the instalment of the regional tax on business activities, also known as IRAP. The reason for this stop is to support businesses in this critical phase.  In short, the decree earmarks 55 billion euros in aid for households and firms  introducing a third set of economic measures in response to the Covid-19 crisis.

The list of the major tax measures to be implemented- Particularly, the Relaunch Decree includes the following tax relief measures: IRAP exemption; tax credit relief; value added tax (VAT) measures and tax payment deferrals; tax litigation and tax authority procedures; export and excise ad hoc measures and a specific step-up in the tax basis of business assets.

Suppression of the Vat safeguard clauses - The Decree also repeals the "VAT safeguard clauses" carried forward in the Italian budget laws since 2011 that would have brought higher VAT rates in the case of excess of public deficit and absent alternative funding options.

Deferral of VAT payments and other tax deferments and postponements - The Decree provides for a further delay of payment terms for VAT liability for March and April 2020 for taxable persons. The entry into force of both the plastic and sugar taxes has been also suspended until 1 January 2021. The same either for the tax tickets lottery or for the pre-populated VAT compliance tools.

IMU cuts for the touristic sector -The Relaunch Decree exempts, under certain conditions, beach clubs, hostels, resorts, Bed & Breakfasts and other touristic structures from the 2020 first advance payment of the IMU, due on 16 June 2020.

Deferment of payments due under tax audit procedures - The Decree also defers the payments due from 9 March 2020 to 31 May 2020 related to several payment requests, including: deeds of settlement; conciliation agreements; mediation agreements; payment requests for the omitted registration of contracts; payment requests issued by Municipalities. Indeed, such payments are all postponed, without penalties and interests, to 16 September 2020 (in full or in four monthly installments starting from 16 September 2020). Moreover, the terms for filing appeals before tax courts of first instance related to all the above-mentioned procedures are postponed to 16 September 2020, provided that the payments are due in the period between 9 March 2020 and 31 May 2020.

Stefano Latini

URL: https://www.fiscooggi.it/tax-pills/articolo/relaunch-decree-out-to-restart-italian-economy-below-are-the-main-tax-measures