After a long wait, the 2016 Stability Law has finally arrived. In the afternoon, the Council of Ministers approved the maneuver and by midnight today the text will be sent to Brussels to be evaluated by European technicians. The package of measures is worth a total of 27-30 billion euros. Among the innovations of the last few days, the part-time paid by companies for workers over 63, the extension of the women's option and the raising of the threshold beyond which it is forbidden to pay in cash. The most awaited interventions, however, are those concerning property taxes.
TAXES AND IMU ON THE FIRST HOME
Farewell to the Tasi on the first house owned and on the main residence for those who rent. Same fate for the Imu on the first house, which, however, was already paid only on luxury properties.
AGRICULTURAL IMU AND AGRICULTURAL IRAP
Agricultural Irap and agricultural Imu have also been cancelled, regardless of professional qualification (general taxpayers, agricultural entrepreneurs or direct farmers) and whether the land is located in mountainous or partially mountainous municipalities. The Imu has also been abolished on bolted vehicles, i.e. company machinery fixed to the ground. The tax relief for those who use the land as a productive factor is equal to 405 million.
COMMON
The Municipalities will be fully compensated by the State for the loss of revenue resulting from the aforementioned Imu and Tasi exemptions on main homes. Furthermore, the new rules will allow Municipalities that have cash resources to commit them for investments of approximately 1 billion in 2016. In addition, the unblocking of payments of investments already made (and so far blocked by the Pact) will be allowed on condition that the Municipalities have the cash in hand.
IRES
The cut in corporate income tax to 24%, envisaged by the maneuver for 2017, will be brought forward to 2016 only if the EU grants the greater flexibility of 0,2% linked to interventions for assistance to migrants. On the business front, therefore, the interventions will come in two stages: a second package of measures (including the advance of the Ires drop) will arrive only after the go-ahead from Brussels, while the maxi depreciation on investments will immediately start.
140% DEPRECIATION FOR COMPANIES THAT PURCHASE MACHINERY AND EQUIPMENT
Renzi has announced that the maneuver will also introduce a "super depreciation" of 140% for entrepreneurs who will invest in machinery and equipment in 2016. The mechanism is to scale: from 2017 the percentage will gradually decrease. The measure is worth one billion euros and will also apply to investments made from 15 October 2015.
The limit beyond which payments in cash is not allowed is raised from one thousand to 3 thousand euros.
SOUTH
450 million is on the way "to close the wound in the land of fires", Renzi said again. The final allocation is also foreseen for the Salerno-Reggio Calabria and a guarantee fund for Ilva.
PROFESSIONALS AND SMALL BUSINESSES
The rule is amended to broaden access to the flat-rate tax advantage. The revenue threshold for access to this scheme is increased by 15.000 euros for professionals (thus bringing the limit to 30.000 euros) and by 10.000 euros for other categories of businesses. The possibility of accessing the flat-rate scheme is extended to employees and pensioners who also have their own business on condition that their income from employment or retirement does not exceed €30.000. For new start-ups, a particularly favorable regime is envisaged with the rate falling from the current 10% to 5% applicable for 5 years (instead of 3 years). While awaiting a structural reform on the taxation of partnerships, the IRAP deduction allowance for this type of business increases from 10.500 to 13.000 euros.
AGAINST POVERTY 600 MILLION IN 2016
The 'Fund for the fight against poverty and social exclusion' is set up within the Ministry of Labor and Social Policies, to which the sum of 600 million euros is assigned for 2016 and one billion from 2017. The Fund it will finance the enabling law on poverty which will be approved as linked to the stability law. The first structural measure against poverty is launched, which will primarily be aimed at poor families with dependent minors. Another fund was then established, on an experimental basis, aimed at supporting measures against educational poverty, fed by payments made by banking foundations. Through this second initiative, a further 100 million is made available a year.
SOCIAL FUND AT 400 MILLION
The social fund is financed with 400 million euros by the Stability law. For 2016, 90 million are allocated for the "After us" law, aimed at supporting people with disabilities when their family members pass away.
TAX SIMPLIFICATIONS
The simplification of administrative sanctions in the tax field is brought forward by one year. Companies will immediately see the VAT refunded for uncollected credits, without having to wait for the end of the bankruptcy proceedings. The dissolution of shell companies is permitted.
PENSIONS
No specific measures are envisaged to increase outgoing flexibility due to lack of resources. However, part-time work is on the way for those close to retirement, the extension of the women's option and the seventh safeguard for the redundant. Laws "Pensions: 4 novelties arriving with the maneuver".
MOBILE BONUS AND ECOBONNUS
The furniture and building renovation bonus and the eco-bonus for energy redevelopment of buildings have been extended to the end of 2016. The deduction on expenses incurred for building renovations is increased from 36% to 50%, confirming the current level of relief. The deduction is also maintained for the purchase of furniture and large appliances. The so-called 'ecobonus', the deduction on expenses for energy redevelopment of buildings, is confirmed at 65%.
CONTRIBUTIONS: FROM 2016 HALF DISCOUNT ON NEW HIRES
For those who hire "by 31 December there will be relief in their entirety until 2018, for those who hire in 2016 the relief is reduced by 40%" and then it will be reduced again.
DECENTRALIZED BARGAINING
The reduced rate of 10% is applied to the share of productivity wages, workers' profit-sharing or company welfare deriving from company bargaining, with a total tax relief of 430 million in 2016 which rises to 589 in subsequent years. The bonus will have a ceiling of 2.000 euros (extendable to 2.500 if participating institutions are also contracted) and will be usable for all incomes up to 50.000 euros.
PARTICIPATE
They are reduced from 8 thousand to a thousand.
HEALTH
On the national health fund "there were 109 billion in 2014, 110 in 2015 and in 2016 there will be 111 billion - Renzi said - More money but let's spend it better, with standard costs for everyone and total transparency on prices".
RENEWAL OF PA CONTRACTS
The Stability Law allocates 300 million for the renewal of public contracts.
UNIVERSITY: COMPETITION FOR 500 PROFESSORS FROM ABROAD
A competition will be announced for 500 university professors who will arrive (or return) to Italy from abroad. “In the stability law there will be an ad hoc measure to bring 500 university professors, including Italians, to Italy – Renzi said on Sunday evening to 'Che tempoche fa' – a way to attract brains with a national competition based on merit: we will give also a nest egg for research projects”.
RESEARCHERS AND SPECIALIZING DOCTORS
COOPERATION
Funds for international cooperation are growing: 120 million in 2016.
ANOTHER MEASURE TO SUPPORT THE ECONOMY WITHIN THE YEAR
"There will be another measure to support the economy before the end of the year," announced the Premier. To those who asked him if there will be a billion on some interventions, such as the Jubilee, Renzi replied that "it is not excluded, perhaps a little less than that figure, and not everything on the Jubilee".
FROM THE SPENDING REVIEW 5 BILLION, FROM THE GAMES A BILLION
The spending review comes "basically 5 billion: this is what we expected net of the intervention on tax expenditures", said Renzi, adding that the savings are linked "in part to the cuts of the individual ministries, approximately 3% even if they are not linear cuts; partly to the central purchasing office; partly to individual items related to purchases of IT assets and the non-increase of some items. The cost of personnel, for example, does not grow, thanks to regulations such as the cap on managers. Some items, sacrosanct, do not have savings for the public budget: the savings for the subsidiary, for example, will remain with the Municipalities which I hope will use them for investments ".
On the other hand, one billion euros will come from the gaming sector.
RESET THE SAFEGUARD CLAUSES
The safeguard clauses envisaged by the previous maneuvers for a value of 16,8 billion "were cleared" with the 2016 Stability law and, therefore, "there will be no increase in VAT or excise duties".
"The curve of the Rai license fee will descend: in 2016 it will be 100 euros, in 2017 it will be 95 euros", explained Renzi, specifying that it will arrive in the bill.
