Il cutting tax breaks has retroactive effect and Italian taxpayers will have to deal with it starting from the 2012 tax return (730 and Unico 2013). This was revealed by Il Sole 24 Ore, citing the latest draft of the 2013 stability law. A text on which the Government is still working and which will be presented to the Chambers next Monday.
Up to now there had been talk of a new ceiling of 3.000 euros for deductions and a deductible of 250 euros on many deductions, excluding those for health care. However, Economy Minister Vittorio Grilli clarified on the sidelines of the IMF meeting in Tokyo that deductions for medical expenses “will not be applied to any level of income. All the others, on the other hand, will be affected for incomes exceeding 15 thousand euros ". Medical expenses will therefore remain outside not only the deductible, but also the ceiling of 3.000 euros annual totals.
Furthermore, among the novelties that emerge from the draft of the bill, there is the fact that the deductible of 250 euros will also apply to the tax deductions envisaged by the Consolidated Law (with the exception of bonuses for deaf-mute and blind people).
There is though a mismatch important to keep in mind. Employees and pensioners will immediately benefit from the cut in personal income tax rates (from 23 to 22% for income brackets up to 15 euros and from 27 to 26% for income brackets up to 28 euros). But self-employed workers who fall within the first two income brackets will collect the benefits of the reduction only when they pay 2014 income taxes in 2013 (excluding advances). Even for them, however, the cut in benefits will be immediate.
