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📜 Biennial tax agreement for VAT taxpayers

Studio Paci

📅 Start: 2024



🎯 Objective: “Simplify” the tax process and provide advantages to VAT taxpayers



📑Legislative scheme:

  • Part of the tax reform for assessments and controls.

  • Discussed in the Council of Ministers on 3 November 2023.

🎯Function:

  • Establish taxes in advance for two years.

  • Addressed to VAT numbers that apply ISA and flat rates.

💡Expected Benefits:

  • Reduction of the fiscal and administrative burden.

  • Possible renewal beyond two years.

🗓️Procedure:

  • Proposal based on data from the Revenue Agency.

  • Financial planning made easy for taxpayers.

🔢 Data and Financial Projections:

  • Estimated 760.5 million euros in tax collections from the settlement.

🛠 Tools and Methodologies:

  • Use of Revenue Agency databases, including ISAs.

  • Development of personalized proposals for each economic activity.

📅Timing:

  • Proposal available from March 15th of each year.

  • Membership deadline: 31 July 2024.

✅Membership Requirements:

  • ISA score at least 8.

  • Absence of significant tax debts (equal to or greater than 5,000 euros)

❌Causes for Exclusion:

  • Lack of tax return.

  • Convictions for specific tax crimes.

🚦Implications of Acceptance:

  • Declaration of the agreed amounts without modifications due to changes in income.

  • No taxation on additional income received beyond what has been agreed.

🔄Termination of the Concordat:

  • In the presence of lower revenues exceeding 60% compared to expected.

  • Exceptional situations to be defined by decree.

💼 Exceptional Case Studies:

  • Immediate termination if specific conditions arise, such as changes in business.

📉 Lapse of the Concordat

  • Tolerance Threshold Exceeded: Forfeiture if undeclared assets or non-existent/non-deductible liabilities exceed 30% of declared revenues.

  • Changes to the Income Tax Return: Changes in income or net production compared to those agreed upon may invalidate the agreement.

  • Payment Default: Failure to pay taxes will result in cancellation of the prepayment plan.


📊 Flat-rate regime and composition with creditors

  • Exclusion of New Activities: Flat-rate workers who started the activity in the previous fiscal year are excluded from the agreement.

  • Tax Stability: Revenue Agency acceptance means fixed taxes for 2024 and 2025, regardless of actual income.


📝 Obligations and Irrelevances

  • Fiscal Compromises:

- Accounting and declaration obligations remain mandatory.

- VAT applied according to ordinary regulations.

  • Suspended Taxation: During the agreement, suspension of the ordinary assessment activities of the Revenue Agency.


🗝️ Implications on income and ISEE

  • Income for Benefits: For bonuses and tax benefits, the actual income is considered rather than the agreed one, also influencing the calculation of the ISEE.


🗓️ Biennial preventive agreement deadlines

Year

Expiration

2024

By July 31st for membership for the two-year period 2024-2025

👥 Subjects admitted

Category

Notes

VAT holders with ISA

​ISA score ≥8 in the previous year

​Flat-rate VAT holders

​Excluding those who started business in the previous year


📉 Cases of forfeiture

​Reason

Threshold

​Undeclared assets or liabilities

​> 30% of declared revenues

​Tax return errors

​Adjustments to income or net production value






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