Subject: Conversion into law of the tax decree containing "urgent provisions on tax matters and for unavoidable needs" (Decree Law No. 124/2019)
Following the conversion into law of the decree on "urgent provisions on tax matters and for unavoidable needs" (Decree-Law No. 124/2019), the main innovations of particular interest to employers/taxpayers, as approved or amended during conversion, are listed below.
In addition, clarifications on "withholding and offsets in contracts and subcontracts" provided by the Internal Revenue Service are also reported.
Offsetting tax credits accrued since 2019
Confirmed the possibility of offsetting VAT credit (annual/quarterly), IRPEF credit, IRES credit and IRAP credit, the amounts of which are more than 5,000.00 euros annually, starting from the tenth day following the day of submission of the annual declaration or application from which the credit emerges.
Under the new provisions, the 2019 IRPEF/IRES/IRAP credit can therefore be offset following the submission of the relevant return and no longer from January 1, 2019. Therefore, by filing the tax return on 09/30/2020 (tax year 2019) showing a credit exceeding 5,000.00 euros, said credit will be usable from 10/10/2020 exclusively through the payment of Mod.F24 through the Entratel/Fisconline telematic services.
Therefore, in order to be able to use credits related to direct and substitute taxes as well as IRAP credit for offsetting in the Form F24, the following conditions must be met as of January 1, 2020:
A) a prior submission of the declaration from which the credit related to the following categories emerges: substitute taxes, income and additional taxes, IRAP and VAT;
B) the submission of Form F24 through the telematic services of the Inland Revenue Agency, for credits related to: substitute taxes, income and additional taxes, IRAP, VAT, concessions and credits indicated in the RU framework of the income tax return.