News and insights

23-04-2020 - COVID-19: further fiscal measures adopted by the Italian Government

With the ongoing epidemiological emergency due to Coronavirus (COVID-19), the D.L. 23/2020 ("Liquidity Decree", the "Decree") was issued on April 8th, 2020 (in force from April 9th, 2020), which provides for further suspensions of the terms of tax and social contribution payments and further extensions for the fulfilment of some tax obligations with regard to the previous  D.L. No. 18/2020  (c.d. "Cura Italia").
Measures related to the suspension of payments

Article 18 of the Decree provides for the suspension of payments for persons operating business, art or profession activities in April and May 2020 related to:

- VAT;
- withholding tax on employee income;
- social security and welfare contributions;
- INAIL contributions for mandatory insurance.

For taxpayers with turnover of up to 50 million (Euros) the suspension applies on the condition that taxpayers have suffered a decrease in turnover of at least 33% in March and April 2020 compared to the same months of the previous tax period.

For taxpayers with turnover of more than 50 million (Euros), on the other hand, the suspension is applicable on the condition that the decrease in turnover was at least 50%.

Payments suspended under the new provisions are made, without the application of penalties and interest, in a single settlement by June 30th, 2020 or by instalments up to a maximum of 5 monthly instalments of the same amount, starting from June 2020.

In addition, similar provisions are provided for taxpayers of the industries most affected by the health emergency (e.g. tourism, food service, sport, entertainment, cultural activities, care services, transport, etc.).

For the purposes of the IRPEF, IRES and IRAP, Article 20 of the Decree gives the possibility of calculating and paying the down payments due using the "forecast" method instead of the "historic" method. In fact, the rule states, only for the tax period after the current period at December 31st, 2019, the non-application of penalties and interest in case of insufficient payment of the sums owed if the amount paid is not less than 80% of the amount that would be due as a down payment on the basis of the declaration related to the current tax period.

Finally, with Article 26 of the Decree, which replaces what was previously regulated by Art. 17 co. 1-bis of D.L. 124/2019, additional simplifications are introduced for the payment of stamp duty on electronic invoices.

Measures related to deferral of tax obligations

Art. 22 of the liquidity decree provides for a further extension, from March 31st, 2020 to April 30th, 2020, of the deadline for the submitting to the Revenue Agency of the “Certificazione Unica 2020” Form relevant for the preparation of pre-compiled tax returns related to year 2019 (Forms “730/2020” and “REDDITI PF 2020”) and for the delivery to recipients of remunerations of the “Certificazione Unica 2020” Form.

Tax litigation measures

For tax authorities, collection agents and persons registered in the register provided for in Article 53 of the Legislative Decree 15 December 1997, No 446, and the parties represented by an authorized defendant, who have submitted the documents in paper in front of the Courts, Article 29 of the Decree provides for the obligation to notify and file subsequent acts, as well as jurisdictional decisions, exclusively by telematics means, in order to facilitate the digitization also of judicial documents.
In addition, Article 36 of the liquidity decree disposes the further extension, from April 15th, 2020 to May 11th, 2020, of the main procedural terms.

Other measures to support corporate liquidity

The Liquidity Decree provides for some measures, up to December 31st, 2020, to facilitate the procedures and to increase the volume of lending to persons operating business, art or profession activities, by banks and other financial intermediaries authorized to exercise credit, through the granting of state guarantees through SACE S.p.A. and the “Central SME Guarantee Fund”. 


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