Political parties will no longer be able to count on public funding through the reimbursement of electoral expenses. This system will gradually decrease, to disappear completely in 2017.
Since 2014, the old system has been replaced by two forms of financing, both available to citizens, who will be able to allocate 2 per thousand of their personal income tax to political parties; or make voluntary payments in their favour, obtaining in exchange the benefit of a tax deduction of 26%, for sums between 30 and 30 thousand euros per year.
The law approved yesterday in the Chamber (law decree 149/13 was converted into law, with numerous changes compared to the text approved by the Letta government) replaces the reform of party financing introduced in 2012, when the system of electoral reimbursements was accompanied by a co-financing by the state, proportionate to the self-financing capacities of the parties.
To be eligible for the two new forms of financing envisaged by the law approved yesterday, the parties must meet the transparency and democratic requirements expressly indicated in the law, which allows them to be registered in the special register of political parties. In addition to enrollment in the Register, to be admitted to the 2 per thousand funding system, parties must have obtained at least one candidate elected to the House, Senate or European Parliament.
To receive the voluntary contribution from citizens and businesses, on the other hand, it is sufficient that, in addition to enrollment in the Register, they have obtained someone elected to a regional council or an autonomous province, or in any case have presented a certain number of candidates in these elections.
For natural persons, a possible contribution ceiling of 100 euros per year for each political party has been set, but the benefit of the tax deduction is limited only to the first 30 euros (from 30 to 30 euros): in practice, the deduction will be able to reach a maximum of 7.792,20 euros per year for each funded party. The limit of 100 thousand euros refers to both cash donations and contributions in goods and services, disbursed in any way. Only bequests mortis causa are excluded.
The ceiling of 100 euros per year has also been set for legal entities, but in this case – given the way the law was written – the ceiling appears to be global and does not apply to each political party. The criteria for applying the ceiling to groups of companies or subsidiaries or associated companies will be defined in a subsequent Dpcm. Companies are also allowed to deduct 26% of the annual contribution from 30 to 30 thousand euros from income taxes. Publicly owned companies and also companies listed on the stock exchange are excluded from the subsidy, as are companies licensed by the State or public bodies.
In any case, the ceilings also apply in the case of payments made in fulfillment of obligations connected to sureties or other forms of real or personal guarantees, granted in favor of political parties.
Furthermore, donations are allowed on condition that the payment of the sums is made through banks or post offices or other payment systems suitable for guaranteeing the traceability of the operations and the exact identification of its author.
