The draft of the 2017 Irap declaration, to be used for the 2016 tax period, is available on the website of the Revenue Agency with the relative instructions. The new model includes the increase of the deduction for minors, the exemption from the tax for the agricultural and fishing sector, the extension to seasonal workers of the deduction of the residual cost for employees.
EXEMPTION FOR THE AGRICULTURAL AND FISHING SECTOR
Among the new features is a general exemption from the tax for agriculture and fishing. The codes that allowed the insertion of the reduced rate for the agricultural sector have therefore been eliminated from the table of IRAP rates. For the same reason, the fields in which the taxpayer was required to specify the value of production subject to the rate of the agricultural sector are no longer present.
THE FLAT-RATE DEDUCTION FOR SMALLER PERSONS IS GROWING
The 2016 Stability Law redetermined the amount of flat-rate deductions; in particular, an increase in the latter has been envisaged with reference to general partnerships and limited partnerships (and equivalent), to natural persons carrying out commercial activities, to natural persons and simple companies carrying out arts and professions. The amount of the aforesaid deductions increased, according to the brackets of production value, by 5 euros, 3.750 euros, 2.500 euros and 1.250 euros.
DEDUCTION OF THE RESIDUAL COST OF EMPLOYEE PERSONNEL EVEN FOR SEASONAL PERSONNEL
The deduction of the residual cost for employees (equal to the difference between the total cost for employees with permanent contracts and the deductions due for the same), is also extended to seasonal workers employed for at least one hundred and twenty days for two periods of tax, starting from the second contract stipulated with the same employer, within a period of two years starting from the date of termination of the previous contract. The deduction is due to the extent of 70% of the difference mentioned above.
ADJUSTMENTS/WRITE-BACKS OF CREDITS FOR BANKS AND INSURANCE
For banks and other financial entities and for insurance companies it is envisaged that net value adjustments and recoveries due to credit impairment (in the case of banks) and net losses, write-downs and value recoveries due to credit impairment (in the case of insurance companies) are fully deductible (or taxable in the case of write-backs) in the tax period of entry in the financial statements; limited to the tax period in progress as at 31 December 2015, net adjustments, losses, write-downs and write-backs were deductible to the extent of 75 per cent of their amount. The excess relating to 2015, together with the net value adjustments and recoveries recorded in the financial statements from the tax period in progress at 31 December 2013 and not yet deducted, are deductible starting from the tax period in progress at 31 December 2016. To allow for the indication of this surplus, two special fields have been provided in section II (banks and other financial entities) and in section III (insurance companies) of part IC.
REFLECTIONS OF THE ELIMINATION OF THE EXTRAORDINARY AREA IN THE INCOME STATEMENT
The legislative decree n. 139/2015 modified the balance sheet and income statement formats, intervening on articles 2424 and 2425 of the Civil Code. Among the changes made to the income statement, the elimination of the extraordinary area is of particular importance. All extraordinary costs and revenues recognized under items E20 and E21, respectively extraordinary income and charges, must be reclassified under other cost and revenue items. Capital gains and losses deriving from the sale of properties that do not constitute capital goods, previously classified among the aforementioned extraordinary components, but still relevant for IRAP purposes, will be recognized under item A5 "other revenues and income" or B14 "other operating expenses" of the income statement. Since these items are already included among those relevant for IRAP purposes, the lines relating to capital gains and losses deriving from the sale of the aforementioned assets have been eliminated from the model.
MORE TIME FOR SENDING THE ADDITIONAL DECLARATION
Article 5 of the decree law n. 193/2016, intervening on article 2, paragraph 8, of Presidential Decree no. 322/1998, extends the term within which the taxpayer can submit the declaration in his favour, equating it, in this respect, to the supplementary declaration in favor of the Administration, or within the terms established by article 43 of Presidential Decree n. 600/1973. For this reason, the box "Supplementary declaration in favour" has been eliminated in the "Type of declaration" box on the title page, since, in the event of presentation of a supplementary declaration, it is no longer necessary to indicate whether it is a supplementary declaration in favor or disfavour. The new deadline is also applicable to the supplementary declarations of previous years for which the terms of forfeiture for the assessment have not yet expired with the consequent elimination of section XII "Accounting errors" of part IS.
Article 5 of the decree law n. 193/2016 also establishes that in the declaration relating to the tax period in which the supplementary declaration in favor is presented, the credit deriving from the lower debt or the higher credit resulting from the supplementary declaration is indicated. To this end, a new section (number XVII) has been provided in the IS framework of the model.
