La tax reform it could arrive in the Council of Ministers as early as next week. The Minister of Economy Giancarlo Giorgetti has scheduled a meeting with his team to finalize the details on the enabling law project which will be based on two pillars: reduction from four to three the groups of personal income tax rates e reduction of IRES. To finance both measures and find the necessary coverage, the government will tap into the vast corpus of tax breaks, trying to cut as much as possible, but gradually, reassured by the Mef. Also expected new verification systems able to reduce tax evasion, whose estimates are currently between 75 and 100 billion a year. However, these are changes that will develop over the years. "We will be able to bring it to the Council of Ministers by mid-March, then there will be parliamentary times", said the Deputy Minister of Economy, Maurizio Leo.
Tax reform: hypotheses on personal income tax rates
As regards the tax on natural persons, the idea would be that of reduce rates four to three. As? By merging the second and third personal income tax rates, currently at 25% and 35% respectively, setting a intermediate rate at 27 or 28%.
“We have a fairly large period of time available, the legislature: therefore an initial intervention can be articulated by going from 4 to 3 rates and then progressively reduce further. We are thinking about the numbers and this will be consistent with the resources available,” said Leo.
Tax reform: starting from IRES, corporate taxes change
The reform could start with the corporate income tax (IRES). According to forecasts, the basic rate will remain at 24%, but may drop up to 15% if the company will invest its profits in the following two years innovative investments or if he will use them for to hire unemployed, recipients of new citizen's income, women or over fifty.
“Let's give companies a stimulus to employ these subjects, I think we can ensure that the lower IRES taxation is reflected in the creation of jobs. And we obtain a further result because in the face of the reduction of the tax burden for companies we would have an Irpef tax for the people who are hired”, explained the deputy minister.
The new IRES could enter into force at the beginning of 2024, at which time Italy will adopt the "Global Minimum Tax” on multinationals with revenues exceeding 750 billion. On the basis of the agreement reached within the OECD, in fact, the country of the parent company or the country that hosts a branch of a multinational company will be able to add a tax burden if the burden remains below 15%. That rate is therefore the minimum allowed. According to Courier, Deputy Minister Leo would also focus on a simplification of companies' relations with the tax authorities. For the little ones, theRevenue Agency would propose on a large scale "agreed biennial estimates”: essentially, a revenue proposal for the next two years. For larger groups, however, the government plans to expand the area of the so-called "compliance cooperatives”, already launched by the OECD.
