Il cabinet approved a decree that reopens the terms to join the two-year preventive agreement, staring a new deadline of December 12The measure, already adopted in a first phase until October 31st, had collected support from approximately 500 thousand people VAT matches, generating revenue of 1,3 billion euros, well below expectations. Faced with pressure from accountants and political forces to broaden the range of taxpayers and increase funds, the government has opted for a new phase of the "concordato bis," which will be included as an amendment to the Fiscal Decree now under discussion in the Senate, alongside the budget law. Here in detail what's this, how it works e who can benefit by preventive agreement bis.
Why was it decided to reopen the terms?
Rather than opting for a simple extension, which could have slowed down the use of the resources already collected, the executive preferred to introduce a new membership window, keeping the accounting timing unchanged. This will allow the "nest egg" of the agreement to be used immediately in the maneuver, allocating the funds to finance the reduction of the Irpef rate of the second bracket (from 35% to 33%) starting in 2024. Even Prime Minister Giorgia Meloni, in a recent meeting with the unions, admitted that further tax cuts will be possible only if the amnesty resources exceed expectations.
However, reaching the fiscal target remains a challenge: although the potential audience is 4,7 million VAT numbers, only 150 people are expected to join; with fewer than 100 people joining, the measure risks failing.
What is a preventive settlement agreement and who benefits from it?
The preventive agreement is a sort of “pact” with the tax authorities which allows taxpayers to agree on a taxable income for 2024 and 2025, on which to apply a reduced substitute tax, without further checks. Adherence is reserved to those who have already submitted theto file tax return by October 31st and allows you to regularize the declarations from 2018 to 2022, paying extremely low rates on the evaded income, calculated on the basis of the fiscal reliability score (ISA):
- 5% of the taxable amount for taxpayers with an ISA index equal to 10,
- up to 50% for those with an ISA index lower than 3.
And on this taxable amount a tax will be paidsubstitutive tax which always varies depending on the taxpayer's fiscal reliability:
- 10% for those with an ISA score of 8 to 10,
- 12% for an Isa between 6 and 8,
- 15% for those with an ISA score lower than 6.
For incomes in 2020 and 2021, it is expected a reduction of 30% on the substitute tax to take into account the effects of the pandemic.
Preventive agreement bis: how and when to pay?
- advances they must be versati by November 30th (or by 2 December, since the 30th falls on a Saturday). Those who join between December 3rd and 12th will be able to take advantage of a “active repentance,” reducing penalties with prompt payment. The final balance can be paid in a single solution by March 31th 2025 (or November 30, 2024 for tax year 2018), or deferred in 24 monthly installments.
A measure that is said to be “appreciated”: but by whom?
“Those who have not signed up by October 31 will be able to take advantage of this new window,” commented the Deputy Minister of Economy Maurice Leo, who presented the reopening of the terms as a gesture of listening to professionals and taxpayers. In a review of the first phase, Leo underlined how approximately 160 thousand VAT numbers, initially with low ISA scores (between 1 and 8), have improved their reliability reaching an ISA score of 10. “We have removed many taxpayers from the sphere of tax evasion, allowing them to return to legality,” declared the minister.
It remains to be seen whether this “reopening” will raise sufficient funds or whether it will simply prove to be a concession made through gritted teeth, chasing a outcome which appears more and more uncertain. In the event of insufficient participation, the preventive agreement could turn into a useless concession, forcing the government to revise downwards its promises of tax reductions.
