01 Janeiro 2013
Stability Law 2013 approved on December 24th, 2012, n. 228 and published in the Official Gazette on December 29th, 2012, will take effect from January 1st, 2013.
The following analysis of the main changes introduced by the Law which consists of a single article and 560 paragraphs.
Personal Income Tax: Increasing deductions for dependent children
Gross tax deductions for dependent children increases from 800 to 950 Euros per child. If the child is under three years of age the deduction increases from 900 to 1220 Euros. If the child is handicapped there will be a further increase of 400 Euros. If the child is a member of a large family with more than three dependent children there will be a further increase of 200 Euros per child from the first one. In the presence of at least four dependent children, an additional deduction of the amount of 1,200 Euros is recognized to parents.
Tax collection and tax collection notices
After six months of the entry into force of the Law in question, all the payment notices containing amounts not exceeding 2,000 Euros (including capital, taxes and more, interests and penalties), arising from the ordinary enforcement procedures carried out until December 31st , 1999, are automatically canceled. For tax debts of up to 1,000 Euros, the licensee, as part of collection enforcement, must send a notice to the debtor by mail and only after 120 days he may proceed with the precautionary and executive actions. The Law also states that the taxpayer, within 90 days from the receipt of the first action of this compulsory or precautionary procedure, may submit an application to the collection agent specifying the causes which have determined the unchargeability of credit (prescription, occurred payment etc.).
220 days after the application of the debtor without having any reply by the competent body, the procedure is canceled.
From July 1st, 2013, VAT will go from 21% to 22%. The increase they have been talking about for several months enters fully into force and will represent one of the major sources of income.
Rates of 10% and 4% remain unchanged.
The tax introduces the obligation to issue invoices for all transactions lacking of territorial requirement until now excluded. On invoices issued to taxable EU subjects there will be stated "Reverse charge", while on those issued to subjects outside EU we will find the " Not subject to" statement. Transactions lacking of territorial requirement will combine from January 1st, 2013 to turnover but will not be taken into account for the calculation of the ceiling.
For invoices of less than 100 Euros (which may be elevated up to 400 Euros), the Law introduces a simplified invoice that will contain only the VAT number or tax code of the customer and the amount for the service or the transfer inclusive of VAT.
In addition, the obligation for electronic billing is introduced, meaning that the invoice has been issued and received in any electronic format.
Stability Law introduces a tax on financial transaction, which affects the transfer of shares, equity instruments and derivatives. The mentioned tax affects primarily the transfer of ownership of shares and equity instruments issued by resident companies in accordance with former article 2364 C.C. of the Italian Code .
It is equal to 0.2% of the transaction, if the transaction has been carried out in unregulated markets, and it is equal to 0.12% for transactions that are carried out on regulated markets.
The tax also applies to the transfer of ownership of securities representing equities and equity instruments, regardless of the residence of the issuer of such securities, and to the transfer of shares arising from the conversion of bonds.
However, some transactions are tax exempted / excluded : operations of issuing / cancellation of securities and financial instruments; conversion into new shares; transfers in regulated markets or MTFs, of shares issued by companies with average market capitalization in the month of November of the year preceding the year of transfer of less than 500 millions; transactions with the counterpart of EU, ECB, EU Central Banks, international bodies and organizations; transactions carried out by companies between which there is a control relationship (Article 2359, paragraph 1, numbers 1 and 2 c.c.) or a result of the corporate reorganization; transactions relating to products and services described as ethical or socially responsible; transactions by market makers and institutions of compulsory insurance, pension funds and supplementary pension funds or rather by individuals acting on behalf of issuers in order to promote liquidity.
The tax is paid by the 16th day of the month following the transfer from banks, trust companies, investment firms and other entities that may intervene. It is paid also by the broker who receives the order of execution of transferring if the transaction is operated by more subjects.
Ivie (Properties Abroad Tax)
Stability Law confirms IVIE rules (properties abroad tax), but changes the start date: no more in 2011 but in 2012. Therefore, the payment that was made in July 2012 to balance in 2011 will be considered advance payment of 2012 tax to be then confirmed in 2013. Subjects liable to the mentioned tax are individuals resident in Italy that own properties or hold a real right abroad.
The tax is in proportion to the part and months of the year of ownership. The basic rate is established at 0.76%.
Deduction of car costs reduced to 20%. All company cars will therefore see the reduction of cost deduction to 20% for a maximum cost of 18,075 Euros per car. Commercial agents will continue to deduct 80% of the maximum cost of the car to 25,822.84. The car used by employees for most of the year, may be considered deductible for 70% and not more than 90%.
For new municipal contribution on waste and services, in force since January 1st, 2013, the Law introduces the following important changes:
- The price is commensurate with the average ordinary quantity and quality of waste per unit area, the use and type of activities carried out;
- The surface of the housing units which may be subject to tax, consists of the functional areas of the premises and of those likely to produce waste and assimilated. For the purposes of the assessment, the municipality can consider as a surface amenable to tax that which is equal to 80% of the land area determined in accordance with criteria established by the Presidential Decree n. 138/1998;
- For the year 2013, the term of the first payment is postponed to April, without prejudice to the right of the municipality to postpone further that period.
IRAP (Regional Income Tax)
Increase in IRAP deductions for those who have employees since 2014.
The projected increase is from 4,600 to 7,500 Euros per employee increased further from 9,200 to 15,000 Euros for the regions of Abruzzo, Basilicata, Calabria, Campania, Molise, Puglia, Sardinia and Sicily.
For all taxpayers, deductions related to taxable base increase: up to 180,759.91 Euros from 7,350 to 8,000 and then decreasing to reach 2,000 Euros for a taxable base exceeding 180,919.81 and up to 180,999.91 Euros.
It is delegated to a decree of Economy to set limits for excluding professionals and small business owners from paying Regional Income Tax. The parameters will also include the use of equipment and staff.