WHAT IS THE BUDGET LAW DECREE IN ITALY?

The budget law decree approved on October 23rd 2018 anticipates the budget law itself, providing important updates for the Italian tax system.

​The most relevant updates regard:

1. Rottamazione ter – Following the previous two rottamazione, the taxpayer can greatly reduce his/her tax liability. Taxpayers who applied for the rottamazione bis can opt for the rottamazione ter as long as they paid at least 1 instalment. The liability is paid in 10 equal instalments over 10 years.
2. Debt write off up to € 1000 – Any outstanding liability, not exceeding € 1000, which arose from 2000 to 2010 will be automatically written off.
3. E-invoicing – Starting from January 1st 2019 e-invoicing will take place. Invoices can be raised within 10 days.

The upcoming budget law will likely include the following updates regarding taxes and Social Security:

• 15% flat tax up to € 65.000 in revenues.
• Corporate rate tax of 15% on reinvested profits.
• Cedolare secca 21% applicable to commercial leases.
• New pension reform.

The most recent updates that will take place in the upcoming budget law can greatly influence your tax position as individual or self-employed; at Accounting Bolla we can help you out in determining which is the best tax regime to adopt in order to minimise your tax burden.
​Check also our articles about filing your taxes in Italy, or airbnb taxes in Italy, or retiring in Italy.