Pending the structural cut of personal income tax in 2018, the new maneuver confirms the incentives for stable work for 2017 as well. From next year, however, the discount will no longer be universal, but concentrated on certain categories. For the relief package, the government has allocated 700 million in the budget law, mostly European funds.
FORMER INTERNS
The tax relief on new hires will still be triennial and 100% for companies that will hire former trainees on an apprenticeship or permanent contract within six months of graduation or diploma. The recipients of this measure are former high school students who took part in the school-work alternation and former university students who underwent curricular internships. The maximum de-contribution reaches 8.060 euros a year.
YOUTH GUARANTEE
The same goes for the recruitment bonus linked to the Youth Guarantee, but in this case there are also reliefs for fixed-term employment contracts of at least six months. However, the bonus is lower, equal to 50% of social security contributions for a period of 12 months, with a ceiling of 4.030 euros per year for each worker hired.
SOUTH
As for the Southern Regions (Campania, Puglia, Basilicata, Calabria, Sicily, Abruzzo, Molise and Sardinia), full tax relief is envisaged with a ceiling of 8.060 euros per year, but only for the hiring of under 24s and young people between 24 and 29 year olds without work for at least 6 months. The ceiling drops by half, to 4.030 euros, for the hiring of workers over 50 (who already benefit from an incentive provided for by the Fornero law).
It is essentially a small-scale reissue of the 100% relief that in 2015 had made apprenticeship contracts fly. Reductions then reduced to 40% this year and which will stop on 31 December.
VAT CONTRIBUTIONS
The social security rates of the VAT numbers drop from 27 to 25%, but the contribution for maternity and sickness rises to 1%.
PRODUCTIVITY BONUS
Productivity incentives on company bonuses for employees in the private sector are strengthened: the income limit to benefit from the 80% facilitated taxation rises to 10 euros, with a ceiling of 3 euros. The relief can reach 4 euros only if the workers are involved in the company organisation.
IRI AT 24%
The tax on craft businesses will be 24%, the same rate as IRES, and will apply to the portion of income that remains with the company.
