NEWSLETTER NO. 39 - 2020

Under the Italian law-decree no. 157 as of 30 November 2020 (published in the Italian Official Gazette no. 297 as of 30 November 2020), the so-called "Ristori-quater Decree", further tax measures in connection with the epidemiological emergency from COVID-19 are introduced.

 

POSTPONEMENT OF SECOND TAX PREPAYMENT UNTIL 10 DECEMBER 2020

The payment deadline for the second or sole income tax and regional tax on productive activities (IRAP) prepayment due on 30 November 2020 by businesses or self-employed individuals having their tax domicile or their legal or operational offices in Italy is postponed until 10 December 2020.

 

POSTPONEMENT OF SECOND TAX PREPAYMENT UNTIL 30 APRIL 2021

The postponement of the payment deadline until 30 April 2021 for the second or sole income tax and regional tax on productive activities (IRAP) prepayment by taxpayers subject to ISA (tax reliability indexes), as already set forth under section 98 of the "August decree" and under section 6 of the "Ristori-bis decree", is confirmed.

Furthermore, the payment deadline for the second or the sole income tax and regional tax on productive activities (IRAP) prepayment due for the tax year subsequent to the one as of 31 December 2019 is postponed until 30 April 2021, with no penalties and interest applicable, even for:

1. businesses or self-employed individuals having their tax domicile or their legal or operational offices in Italy:
   • with proceeds or income of no more than EUR 50 million in the tax period before the one as of 30 November 2020 and that
   • suffered a loss in turnover or income of at least 33 percent in first half-year 2020 compared to the first half-year of 2019.
2. businesses or self-employed individuals that:
   • operate in the sectors referred to in annex 1 and annex 2 to the Italian law-decree no. 149/2020 (Ristori bis decree) and
   • have their tax domicile or operational office in those Italian high-risk areas with critical alert, as set forth on 26 November 2020 in the orders by the Italian Ministry of Health pursuant to section 3 of Italian DPCM as of 3 November 2020, or operate restaurant businesses in those high-risk areas with critical alert, as set forth on 26 November 2020 in the orders by the Italian Ministry of Health pursuant to section 2 of the Italian DPCM as of 3 November 2020,

regardless of their amount of turnover or income and of whether or not they suffered a loss in turnover or income.

 

SUSPENSION OF DECEMBER PAYMENTS

The payment deadlines for businesses or self-employed individuals having their tax domicile or legal or operational offices in Italy:

• with proceeds or income of no more than EUR 50 million in the tax period before the one as of 30 November 2020, and that
• suffered a loss in turnover or income of at least 33 percent in November 2020 compared to November 2019,

are suspended, as well as the payments due in December 2020 relating to:

1. withholding taxes on income from employment and similar income pursuant to section 23 and section 24 of the Italian DPR 600/1973, as well as withheld regional and municipal income surtaxes;
2. VAT;
3. social security contributions.

This suspension applies in any case to businesses or self-employed individuals having their tax domicile or legal or operational offices in Italy, that started business after 30 November 2019.

Furthermore, this suspension applies regardless of the amount of turnover or income and the loss in turnover or income suffered by all those who

• carry out business activities that are suspended pursuant to section 1 of the Italian DPCM as of 3 November 2020, and have their tax domicile, registered or operational offices in Italy,
• carry out food and beverage services, having their tax domicile, registered or operational offices in those Italian high-risk areas with critical or high alert, as set forth on 26 November 2020 in the order by the Italian Ministry of Health pursuant to section 2 and section 3 of the Italian DPCM as of 3 November 2020
• carry out business in the sectors specified in annex 2 to the Italian law-decree no. 149/2020 or a hotel, a travel agency or tour operator business, and have their tax domicile or legal or operational offices in those Ital-ian high-risk areas with critical alert, as specified on 26 November 2020 in the order by the Italian Ministry of Health pursuant to section 3 of the Italian DPCM as of 3 November 2020.

All suspended payments are made without any interests and penalties in one instalment by 16 March 2021 or in no more than 4 monthly instalments of equal amount. The first instalment shall be due by 16 March 2021. Payments already made are not reimbursed.

 

POSTPONEMENT OF DEADLINE FOR FILING OF INCOME AND REGIONAL TAX ON PRODUCTIVE ACTIVITIES (IRAP) TAX RETURNS

The deadline for the electronic filing of the income and regional tax on productive activities (IRAP) tax returns set to expire on 30 November 2020 is postponed until 10 December 2020 for all taxpayers.

 

POSTPONEMENT OF PAYMENT DEADLINES FOR SPECIAL TAX SETTLEMENT SCHEMES

The payment deadline for sums owed under special tax settlement schemes ("rottamazione-ter" and "saldo e stralcio") is postponed from 10 December 2020 until 1 March 2021.

 

POSTPONEMENT OF PAYMENT DEADLINES (PREU)

The payment of the final balance for the one-off tax withdrawal (PREU tax) on amusement machines and fees for use relating to the fifth two-month period 2020 is payable as follows:

• 20 percent of the amount owed based on the income from games of the same two-months period by 18 December 2020;
• 80 percent in monthly instalments of equal amount, plus legal interest calculated on a day-by-day basis; the first instalment shall be due by 22 January 2021 and the subsequent instalments by the last day of the following months; the last instalment shall be payable by 30 June 2021.

 

"RISTORI DECREE": CONTRIBUTIONS TO LOSSES

All those holding an active VAT number on 25 October 2020 and who declared to carry out one of the activities specified under the ATECO codes in Annex 1 to the decree (see annex hereto) are entitled to the contributions to losses provided for under the Italian law-decree no. 137/2020 (Ristori decree).

 

PAYMENT BY INSTALMENS UNDER THE TAX COLLECTION SETTLEMENT SCHEME

Upon the filing of an application for payment by instalments and as long as such application is not rejected or payment deferral does not expire:

1. the limitation and forfeiture periods are suspended;
2. no new confiscation orders and mortgages, save for those already existing at the date of filing, may be registered;
3. no new enforcement proceedings may be started.

Taxpayers declaring that they are temporarily facing objective economic difficulties must provide all relevant documentation for all applications for payment by instalments filed until 31 December 2021 in order for such payment by instalments to be granted, if the sums registered under the tax collection settlement scheme amount to more than EUR 100,000.

In the event of failure to pay 10 even non-consecutive instalments, payment by instalments is forfeited.

For all sums forfeited from the scheme before suspension started (8 March 2020), a new application for payment by instalments may be filed by 31 December 2021. Payments overdue at the respective date of application need not to be paid.

 

EXEMPTION FROM IMU (Municipal Property Tax)

It has now been clarified that the provisions on exemption from IMU (Municipal Property Tax) introduced under the "Relaunch Decree", the "August Decree", the "Ristori Decree" and the "Ristori-bis Decree" apply to IMU taxpayers (not necessarily to the owners) that also operate the businesses specified under the above provisions.

 

COMPENSATION FOR SEASONAL WORKERS

Compensations for tourism seasonal workers, thermal baths, the entertainment industry and doorstep sellers is introduced.

 

Yours sincerely,

HAGER & PARTNERS