The Italian Government has approved the Legislative Decree No 145, dated October the 18th 2023, i.e. the Tax Decree linked to the Budget Law for the financial year 2024 (currently under approval), introducing some economic and tax urgent measures.

Main updates as follows:

  1. Postponement of the second advance payment related to the FY 2023 for self-employed professionals:

The second installment of the advance corporate tax (s.c. IRPEF) payment due by self-employed professionals whose turnover does not exceed € 170,000 in FY 2022, is postponed from November 30th 2023 to January 16th 2024.

The extension is applicable exclusively for fiscal year 2023.

The following subjects are excluded from the postponement:

  • self-employed professionals whose turnover exceeds € 170,000 in FY 2022;
  • individuals with no VAT number;
  • entities (e.g., joint stock companies and partnerships, as well as corporate and no profit entities).

The aforementioned subjects must still comply with the payment term dated November the 30th 2023.

The postponement is applicable to profit tax as well as to any related substitutive tax due by taxpayers benefitting from the flat tax or forfeit regime. In particular:

  • the substitute tax for the special regime (articles 27 co. 1, 2 and 7 of Legislative Decree 98/2011 and 1 co. 96 - 115 and 117 of Law 244/2007);
  • the substitute tax for the flat tax regime (art. 1 co. 54 - 89 of Law 190/2014);
  • the substitutive tax on the rental of residential properties (s.c. "Cedolare Secca" art. 3 of Legislative Decree 23/2011 and Revenue Agency provisions of 7.4.2011 n. 55394);
  • the substitutive tax on the real estate properties held abroad or IVIE (art. 19 co. 13-17 of the Legislative Decree 201/2011) and the substitutive tax on the financial assets held abroad or IVAFE (art. 19 co. 18-22 of the Legislative Decree 201/2011);
  • the substitutive tax for compensation from tuition (art. 1 co. 13-16 of Law 145/2018);
  • the "ethical tax" (art. 1 co. 466 of Law 266/2005 and Prime Ministerial Decree 13.3.2009).

The eligible taxpayers can also opt for a payment by installments of the second advance payment up to five monthly installments, due from January 16th 2024. Interest at 4% annual rate are due on installments subsequent to the first.

  1. Postponement of the deadlines for the voluntary repayment of the R&D credit.

With reference to the procedure of the voluntary repayment of the tax credit for research and development expenses set forth by art. 5 co. 7 - 12 of Legislative Decree 146/2021, art. 5 of the Tax Decree provides that:

  • the deadline for submitting the application to access to the R&D voluntary repayment procedure is postponed from November 30th 2023 to June 30th 2024;
  • the payment deadline for the lump sum or the first installment is postponed from December 16th 2023 to December 16th 2024.

The voluntary procedure (i) implies the cancellation of the administrative and criminal sanctions; (ii) concerns any undue compensation of the R&D credit carried out until 10/22/2021, limited to expenses incurred but not eligible for the R&D tax credit incentive and (iii) relates to costs for activities carried out in the tax periods between 2014 and 2019.

  1. Temporary windfall contribution against high energy prices

With reference to the windfall contribution against high energy prices, set forth by art. 1 § from 115 to 119 of Law 197/2022, art. 6 of the Tax Decree partially amends the calculation criteria for FY 2023 and introduces a similar contribution for FY 2024. In particular:

  • With reference to the contribution relating to 2023:
  1. the utilization of untaxed equity reserves ("riserve in sospensione di imposta"), also when accrued pursuant to art. 109 §4 lett. b) of the Italian Corporate Tax Code, shall be excluded from the calculation of the incomes subject to the contribution relating to the tax period prior to 2023, up to the limit of 30% of the total amount resulting at the end of the financial year prior to 2022.
  2. In case of exclusion from the tax base of the utilization of such reserves, the latter must also be excluded from the calculation of the average of the total incomes accrued in the four tax periods prior to 2022, up to the extent of the exclusion made in the tax period prior to 2023.
  • For fiscal year 2024 only, the contribution shall be due based on the application of points a) and b) above, to be paid in two equal installments by May the 30th 2024 and October the 30th 2024.

In case of unpaid contribution, a 30% penalty shall be due.

  1. Nuova Sabatini refinancing

The Government has authorized the funding of additional 50 million euros in order to ensure new support to the productive investments of micro, small and medium-sized enterprises implemented pursuant to the art. 2 of the converted Legislative Decree 69/2013 ("Nuova Sabatini") carried out in FY 2023.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.