The “Cure Italy” Decree, published in the official gazette on 17 March 2020, has provided e package of fiscal measures and employment-related relief in response to the Coronavirus (Covid-19) pandemic. As a result, the tax calendar previously in force for millions of taxpayers has been largely changed. Particularly, the law decree addresses the following fiscal issues.
Tax payments freeze – As far as tax payment and compliance deadlines are concerned, the decree suspends, among other fiscal duties, certain payments of withholding tax on wages. At the same time also freezes payments of social security contributions, of mandatory insurance premiums and of related obligations. Furthermore, the value added tax (Vat) payments due for March 2020 are also delayed. About Vat, firstly deferred only for the tourism-hotel sector the decree extends the value added tax disbursements postponement to other subjects operating in different sectors. When the new fiscal deadline? Taxes not levied by withholding agents can be paid directly by the taxpayer in one lump-sum by 31 May 2020 or in a maximum of five equal monthly instalments, starting from May 2020, without penalties or interest for late payment.
Fiscal collection deferred - The decree also suspends collection payment deadlines related to payment notices, or “cartelle di pagamento”, issued by collection agents and by the social security authorities, as well as tax assessment notices, the so called “avvisi di accertamento”, issued by the tax authorities.
Tax relief and incentives in response to coronavirus, Covid-19 - Tax incentives provided concern payments of “employee bonuses” and tax credits for the expenses incurred by businesses to sanitize work premises. Besides, donations made by individuals and non-profit entities during 2020 to the state, regions, local public authorities, other public institutions or legally recognized non-profit organizations to finance investments or expenses aimed at managing the Covid-19 emergency can benefit from a 30% tax deduction subject to a cap of €30.000.
Tax assessment, tax collection and tax litigation – Finally, the decree provides for a temporary suspension of certain tax agency deadlines. For instance, from 8 March to 31 May 2020, there will be a postponement of the deadlines by which the tax agency must finalize tax audits, issue and serve notices of assessment, request payments and pursue litigation. The same time rescheduling apply either to tax rulings - ordinary rulings, fast-track rulings under the cooperative compliance regime, and substantial investment rulings – or to the admission to the cooperative compliance regime. Answers to applications for international rulings, such as APAs, unilateral corresponding adjustments on transfer pricing, and patent box relief are also freeze.