Reduction of the tax burden on employees pursuant to decree-law no. 3, converted by law 2 April 2020, n. 21. Safeguarding the credit to the “incompetent” pursuant to article 128 of the decree-law of 19 May 2020, n. 34, the so-called “Relaunch decree”. Accounting instructions. Changes to the chart of accounts
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This circular provides information on the implementation of the new measures to reduce the tax burden, starting from 1 July 2020, for the benefit of the holders of income from employment and certain income similar to them, including including numerous services provided directly by INPS as a withholding agent. The interventions consist of an additional treatment and a further tax deduction, in addition to that provided for by article 13 of the TUIR, related to certain income limits.
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CONTENTS
1. Introduction
2. Reference regulatory framework
3. Conditions necessary for access to tax benefits
3.1 Subjective requirements: beneficiaries and excluded subjects
3.2 Verification of the income limit 3.3 Rule for granting only supplementary treatment
3.4 Recognition of the so-called “Renzi bonus” and supplementary treatment as a result of the emergency from COVID-19 to incapacitated subjects
4. Withholding tax obligations
5. Support services of income and social inclusion
5.1 Types of benefits to support income and social inclusion
5.2 Benefits to support income and social inclusion excluded
6. Procedure for monthly determination of the supplementary treatment
7. Year-end tax adjustment and CU / 2021
8 Communications for the waiver of the new supplementary treatment
9. Notices for the waiver of the further deduction 10. Accounting instructions 1. Introduction
The decree-law of 5 February 2020, n. 3, converted, with modifications, by the law 2 April 2020, n. 21 (Attachment n.1), provides, starting from 1 July 2020, two distinct tax breaks in favor of earners of income from employment and certain similar income, in place of the bonus of 80 euros provided for by decree-law 24 April 2014, n. 66, converted, with amendments, by law no. 89, which is, therefore, repealed from the same effective date.
In particular, these are the following measures:
– supplementary income treatment equal to 100 euros per month, for an amount of 600 euros respectively with reference to the second half of 2020, and 1,200 euros per year from 2021 for overall income not exceeding 28,000 euros per year;
– an additional temporary deduction from the gross tax, from 1 July 2020 to 31 December 2020, equal to 600 euros in correspondence with a total annual income exceeding 28,000 euros which decreases linearly until zeroing when a level of total income of 40,000 euros per year. The new measures and obligations of INPS as a withholding agent are illustrated below.2. Regulatory framework of reference
Supplementary treatment
Article 1 of the decree-law n. 3/2020 provides for the recognition of a sum by way of supplementary treatment equal to 600 euros for the second half of the year 2020 and 1,200 euros per year starting from the year 2021 to holders of employment income and certain income similar to those by employee, whose total amount does not exceed 28,000 euros per year and having a gross tax higher than the deductions from employment due to them provided for by article 13, paragraph 1, of the decree of the President of the Republic 22 December 1986, n. 917 (TUIR), determined on the same income.
The supplementary treatment, which, like the credit referred to in article 13, paragraph 1-bis, of the TUIR, does not contribute to the formation of income, must be automatically recognized by the withholding agents, starting from the services rendered from 1 July 2020 and is related to the working period.
Further deduction
Article 2 of the decree-law n. 3/2020 provides for the holders of income from employment and certain income similar to those from employment, for the services rendered from 1 July 2020 to 31 December 2020, the recognition of a further deduction from the gross tax, in relation to the period of work, to the following extent:
to. 480 euros, increased by the product between 120 euros and the amount corresponding to the ratio between 35,000 euros, less the total income, and 7,000 euros, if the amount of the total annual income exceeds 28,000 euros but not 35,000 euros;
b. 480 euros for the part corresponding to the ratio between the amount of 40,000 euros, less the total income, and the amount of 5,000 euros if the total annual income exceeds 35,000 euros, but not 40,000 euros.
At the moment, the further deduction is foreseen only for the second half of the year 2020, as it is attributable to a broader structural revision of the system of tax deductions.
Safeguarding of incapacitated individuals
Among the other fiscal measures provided for by the decree-law n. 34/2020, article 128 (Annex 2) provides that the credit of 80 euros referred to in article 13, paragraph 1-bis), of the TUIR due until 30 June 2020 and the additional treatment of 100 euros referred to in decree-law no. 3/2020, due from 1 July 2020, are recognized in favor of the same subjects indicated, in possession of the requirements specified in the following paragraphs, even in the event that the same workers are incapable due to the lower employee income produced in 2020 due to the consequences related to the epidemiological emergency from COVID-19. 3. Necessary conditions for access to tax benefits 3.1 Subjective requirements: beneficiaries and excluded subjects
As established by article 1 of the decree-law n. 3/2020 and similarly to what is already provided for by the decree-law n. 66/2014, the beneficiaries of the supplementary treatment and of the further deduction are the subjects who receive the following types of income:
– compensation of employees referred to in article 49, paragraph 1 and paragraph 2, lett. b), of the TUIR;
– income similar to that of employees, referred to in paragraph 1 of article 50, of the TUIR belonging to the following categories:
remuneration received by worker members of cooperatives (letter a); indemnity and remuneration received by third parties by employees for tasks performed in relation to this quality (letter b); sums paid by anyone as a scholarship or check, award or subsidy for study or professional training purposes (letter c); income deriving from coordinated and continuous collaboration relationships (letter c-bis); remuneration of priests (letter d); pension benefits pursuant to Legislative Decree 21 April 1993, n. 124, however disbursed (letter h-bis); remuneration for socially useful work in compliance with specific regulatory provisions (letter l).
By express legislative provision, holders of pension income referred to in article 49, paragraph 2, lett. a), of the TUIR, and the holders of income similar to employee work other than those referred to in the decree-law in question. Also excluded are holders of professional income and, in any case, income produced by holders of a VAT number in an autonomous or business form.3.2 Verification of the income limit
Pursuant to article 3 of decree-law no. 3/2020, for the purposes of determining the total income for the calculation of the tax benefits in question, does not include the income of the real estate unit used as a main residence and that of the related appurtenances, while the exempt portion of the emoluments received is also taken into account by teachers and researchers who return to Italy (article 44, paragraph 1, of decree-law no.78 / 2010) and the exempt quota provided for by the favorable regime for repatriated workers (article 16 of Legislative Decree no. 147 / 2015). 3.3 Rule for granting only supplementary treatment
To be entitled to the supplementary treatment referred to in article 1 of the decree-law n. 3/2020 the holders of employment income must have a gross tax, determined on such income, of an amount greater than the work deductions due to them based on paragraph 1 of article 13 of the TUIR.
The circumstance that the gross tax generated by the income from dependent or similar work is reduced or zeroed as a result of deductions other than those from dependent work provided for by article 13, paragraph 1, of the TUIR, such as for example the deductions for loads, is not relevant. family (article 12 of the TUIR). 3.4 Recognition of the so-called “Renzi bonus” and of the supplementary treatment in consequence of the COVID-19 emergency to incapacitated subjects
As already mentioned, article 128 of the decree-law n. 34/2020 established that the withholding agent, for the year 2020, starting from the first useful installment of the service in payment and in any case within the terms for carrying out the year-end tax adjustment operations, recognizes the credit referred to in ‘article 13, paragraph 1-bis), of the TUIR, due until 30 June 2020, and the additional payment of 100 euros referred to in decree-law no. 3/2020, due from 1 July 2020, in favor of employees who benefit from the labor support measures contained in articles 19, 20, 21, 22, 23 and 25 of the decree-law of 17 March 2020, n. 18, even if the gross tax calculated on the aforementioned income due and of an amount lower than the work deductions referred to in paragraph 1 of4. Fulfillments of the withholding agent
The supplementary treatment is recognized directly by the withholding agent who is required to pay it, in relation to the effective period of work performed during the year, automatically and without the need for any prior fulfillment or formal request by the worker, who is nevertheless obliged to promptly inform the withholding agent if he does not possess or loses the subjective requisites required for the accrual of the benefit.
The provision of the supplementary treatment carried out by the withholding agent is recovered, pursuant to article 1, paragraph 4, of decree-law no. 3/2020, through the institution of compensation through the F24 form referred to in Article 17 of Legislative Decree 9 July 1997, n. 241.
With reference to the further deduction for overall income exceeding 28,000 euros and up to 40,000 euros, which follows the general rules of calculation and deduction from the gross tax, it is represented that for the employees of the Institute it will be determined, in theoretical, from the Tax Platform on the basis of the estimated annual income of each potential beneficiary and will be communicated to the Central Human Resources Department of the Institute, which will recognize the amount due up to capacity, showing it in the relative monthly salary slip. A similar process is envisaged for income support services to which the Tax Platform grants further tax deductions. Similarly, for the pension benefits referred to in article 50, paragraph 1, lett. h-bis), the other benefits accompanying the pension and the social APE, both the additional deduction and the supplementary treatment, if due, are recognized, starting from the coupon of July 2020 in accordance with current legislation, in the form of monthly credit disbursed provisionally. In particular, in the monthly slip the presence of the additional deduction is indicated with the words “Advance payment of personal income tax”, while for the supplementary treatment the following indication appears: “Supplementary treatment L. 21/2020”. in the form of a monthly credit disbursed on a provisional basis. In particular, in the monthly slip the presence of the additional deduction is indicated with the words “Advance payment of personal income tax”, while for the supplementary treatment the following indication appears: “Supplementary treatment L. 21/2020”. in the form of a monthly credit disbursed on a provisional basis. In particular, in the monthly slip the presence of the additional deduction is indicated with the words “Advance payment of personal income tax”, while for the supplementary treatment the following indication appears: “Supplementary treatment L. 21/2020”.5. Income support and social inclusion
benefits Income support and social inclusion benefits fall within the scope of application of the legislation in question as they are considered income of the same category as those replaced or lost pursuant to articles 6 and 49 of the TUIR [1]. It should also be noted that the supplementary treatment will be recognized automatically by INPS only for services paid directly to the insured, for which the Institute performs the functions of withholding agent.
In cases where the treatment has been anticipated by the employer, in fact, as often happens for services in constant employment (layoffs, sickness, maternity, etc.),5.1 Types of benefits in support of income and social inclusion
As we have already had the opportunity to specify with circular no. 67 of 29 May 2014, relating to the discipline of the tax credit (so-called “Renzi bonus”), income support services are linked to the occurrence of events, temporary and unpredictable in duration, which may arise during the employment relationship or upon termination of the same. This peculiarity has effects on the calculation of the forecast income and on the consequent periodic recognition of the subsidy.
Also for the purpose of determining the supplementary treatment, the income support benefits can be divided into:
a) benefits for which the credit will be determined using the calculation of the ”
b) services for which the credit is determined on the basis of available data.
In particular, the following benefits fall into the first category:
– the NASpI unemployment benefit;
– DIS-COLL unemployment benefit;
– agricultural unemployment benefits (DS AGRI);
– the supplementary measurement allowances of NASpI provided for by some Solidarity Funds;
– the supplementary allowance for the duration of NASpI and ordinary mobility provided for by the Air Transport Fund;
– the emergency check provided by the Credit Fund and the Cooperative Credit Fund;
– work credits referred to in articles 1 and 2 of Legislative Decree n. 80/1992 (so-called last three monthly payments) paid by the Guarantee Fund;
– maternity allowance for compulsory leave;
– mandatory leave from the father;
– allowance for socially useful activities;
– traineeship allowance.
It also includes the write-off payments of the ASpI and MiniASpI unemployment benefits, ordinary mobility and special unemployment benefits for construction.
On the other hand, the second category includes all those treatments for which, since the duration is not known, it is not possible to determine a forecast income, and more specifically:
all types of wage integration:
Ordinary CIG, extraordinary CIG, CIG in derogation, CISOA, ordinary check and solidarity check (from the bilateral solidarity funds / wage integration fund); the relocation allowance for CIGS holders (so-called “re-employment bonus”); the illness; compensation for absolute temporary disability of workers insured under IPSEMA; parental leave; the father’s optional leave; TB indemnities; the permissions recognized by law no. 104/1992; extraordinary leave benefits. 5.2 Income support and social inclusion benefits excluded
It is also confirmed that all income support and social inclusion benefits subject to separate taxation pursuant to Article 17 of the TUIR are excluded, as listed below:
– the TFR Guarantee Fund referred to in Article 2 of Law no. 297/1982;
– the tax collection severance indemnity pursuant to law no. 377/1958;
– the arrears of the benefits referred to in paragraph5.1 if they fall within the tax regime referred to in article 17 of the TUIR.
Just as the advance payment of the NASpI indemnity paid in a single solution in order to incentivize the start of a self-employment activity of the insured is excluded, as it loses the connotation of a typical social security benefit to assume the nature of financial contribution for the development of self-entrepreneurship [2].
They are still to be excluded from the scope of application of the credit legislation in question, as they constitute income from self-employment and are not income from employment or similar referred to in articles 49, paragraph 1 and paragraph 2, lett. b), and 50, paragraph 1, of the TUIR:
– maternity allowances for self-employed women (artisans and traders, professional agricultural entrepreneurs, direct farmers, settlers, sharecroppers);
– maternity and sickness benefits for insured persons registered in the separate management, as freelancers and holders of VAT numbers.
Finally, all income support services exempt for tax purposes are excluded, such as:
– Citizenship income;
– family allowances and allowances for the family unit;
– maternity allowance for atypical and discontinuous jobs (the so-called state maternity allowance);
– the COVID-19 indemnity pursuant to Legislative Decree no. 18/2020, converted by Law no. 27/2020, the so-called “Cura Italia” decree, and pursuant to Legislative Decree no. 34/2020, converted by Law no. 77/2020, the so-called “Relaunch decree”;
– the anticipation of 40% of the salary integration treatments referred to in article 22-quater of Legislative Decree no. 18/2020;
– maternity and family allowance granted by the municipalities;
– the Birth Award;
– the Christmas allowance (so-called baby bonus);
– the baby-sitting bonus. 6. Procedure for monthly determination of the supplementary treatment
Until June 2020, the INPS determines through the application called “BDL 66/2014”, with the criteria and procedures currently in force, the credit provided for by article 13, paragraph 1-bis), of the TUIR. It is considered useful to specify that for income support services the last processing will be carried out in July 2020, that is, since the credit in question is calculated the following month compared to the one in which the payment of the benefit to which it refers takes place.
From July 2020, for all the services concerned, the Institute will determine the amount of the supplementary treatment equal to 100 euros, taking into account the total estimated income for the entire tax period, the relative period of work, as well as the new provision referred to in article 128 of the decree-law n. 34/2020.
The operators of the territorial structures will be able to view, starting from July 31, 2020, the calculation criteria of the supplementary treatment, by accessing the procedure: “TIN (Supplementary Treatment)”. The procedure will be available through the following path in an intranet environment: “Services”> “Tax Platform”> “TIN”. The same procedure will allow, with a specific function, the registration of any refunds to the Institute of sums received by users by way of additional treatment.7. End-of-year tax adjustment and CU / 2021
In the end-of-year adjustment, the withholding agent is required to verify the entitlement to the individual tax benefits and, if not due in whole or in part, shall recover the sums paid for the further deduction (article 2, paragraph 3, of the decree-law no. 3/2020) and for the supplementary treatment, taking into account the possible right to the further deduction (article 1, paragraph 3, of the aforementioned decree).
In both cases, where the undue sum exceeds 60 euros, the recovery will be made in 8 equal installments, starting from the first payment installment of the service that discounts the effects of the adjustment.
The tax concessions in question paid to taxpayers during 2020 will be the subject of detailed disclosure in CU / 2021.
For all purposes, please note that if the taxpayer has in any case received from the withholding agent a credit referred to in article 1 of decree-law no. 3/2020, in whole or in part not due, and required to return the same in the tax return. 8. Communications for the waiver of the new supplementary treatment
Without prejudice to the fact that the Institute, like the credit referred to in article 13, paragraph 1-bis), of the TUIR, must automatically recognize the new supplementary treatment referred to in article 1 of the decree from 1 July 2020. law n. 3/2020, on the basis of the income data at its disposal, the policyholders may submit, through the presentation channels listed below, declarations / requests aimed at waiving the benefit, namely:
– policyholders who, on the basis of their personal overall income situation, do not have the prerequisites for the recognition of the supplementary treatment on the benefit provided by INPS are required to promptly notify the Institute, which will recover any benefit made from subsequent payments and, in any case, within the terms for carrying out the year-end adjustment operations;
– insured persons who, in addition to being holders of income from social security benefits, are also simultaneously holders of other income from employment (for example, holders of part-time redundancy fund), whose total amounts considered exceed the maximum threshold of 28,000 euros per year as per article 1 of decree-law no. 3/2020 for the granting of the benefit, are required to ask one of the withholding agents not to recognize the credit so that it is disbursed by only one substitute.
The channels through which users can communicate the renunciation of supplementary treatment are the portal of the Institute and the territorial structures. Specifically, the revocation application will be made available by 31 July 2020 on the Institute’s website. In this case, the interested parties will be able to access the following procedure with their own credentials (CIE, SPID, PIN or CNS): “Provision and services”> “Waiver of supplementary treatment DL 3/2020”. Similarly, the operators of the territorial structures will be able to follow up on user requests by accessing the following application in the intranet environment: “Services”> “Tax Platform”> “TIN waiver (Supplementary treatment waiver)”. 9. Communications for the waiver of
With regard to the further deduction, it is represented that the interested party will be able to express the renunciation of the recognition of the right by submitting a new declaration of right to tax deductions, by accessing the service with his / her credentials: “Performance and services”> ” Tax deductions “.
In this regard, it should be noted that:
– the renunciation of the deduction referred to in article 13 of the TUIR also entails the renunciation of the further deduction referred to in article 2 of decree-law no. 3/2020;
– the right to tax deductions provided for by the aforementioned article 13 entails the automatic recognition of the further deduction in compliance with the income limits provided for by the law. 10. Accounting instructions
Similarly to what is already provided for the benefit referred to in decree-law no. 66/2014, the recognition in the financial statements of the effects deriving from the reduction of the tax burden, referred to in article 1 of decree-law no. 3/2020 and structured in the context of round games.
The disbursement of the supplementary income treatment, on behalf of the State, to the beneficiaries of temporary economic benefits, retirement benefits and extraordinary allowances, as described in the previous paragraphs, will be charged as offsetting against the taxes to be paid periodically to the Treasury. . The activities deriving from the compensation will be managed by the Directorate General of the Institute. Temporary economic benefits
With regard to recipients of temporary economic services, the provision of the supplementary treatment is arranged with a centralized procedure and will be recognized in the accounts at the local level with the registration of automated accounting tickets, type “PD” operation, as part of the GPA management, in which specific new accounts will be set up:
GPA11745 to recognize the debt for the supplementary income treatment, paid on behalf of the State, towards the beneficiaries of temporary benefits;
GPA35745 to recognize the charge for the supplementary income treatment, paid on behalf of the State, to the beneficiaries of temporary benefits.
Any re-credits for sums not collected by the beneficiaries, as supplementary treatment referred to in article 1 of decree-law no. 3/2020, received with the electronic reporting flow provided by the Bank of Italy, will be processed by the normal accounting procedures.
To this end, the new budget code is established, as part of the register GPA10031: “03232” Sums not collected by the beneficiaries – Supplementary treatment of income for beneficiaries of temporary benefits – article 1 of Legislative Decree 5 February 2020, n. 3, converted by the law 2 April 2020, n.21 – GPA Management.
In the event that the supplementary treatment is not due, the reinstatement must be attributed to the new institution account shown below:
GPA25751 Recovery of the supplementary income treatment, paid on behalf of the State, to the beneficiaries of temporary economic benefits – article 1 of Legislative Decree 5 February 2020, n. 3, converted by the law 2 April 2020, n.21.
Pension benefits and extraordinary checks
The accounting recognition of the supplementary treatment in question, in favor of pension benefit recipients, will be carried out with the allocation to the newly established account GPA35746, by the procedure for the accounting division of pension payments, appropriately updated.
For extraordinary income support allowances, disbursed by solidarity funds, the charge for the supplementary treatment referred to in article 1 of decree-law no. 3/2020 must be charged to the newly established account GPA35747.
Furthermore, the provision in question also applies to the beneficiaries of the redundancy benefits, as per article 4, paragraphs 1 7-ter, of law no. 92/2012, therefore the additional treatment due will be recognized in the newly established account GPA35748.
Any re-credits for unsuccessful payments, disbursed through the pensions procedure, will be charged to the GPA10031 account with the indication of the respective budget codes set up specifically:
“03233” – sums not collected from beneficiaries Supplementary income treatment for pension beneficiaries, -article 1 of Legislative Decree February 5, 2020, n. 3, converted by Law 2 April 2020, n.21- GPA Management;
“03234” – sums not collected by the beneficiaries Supplementary income treatment for the beneficiaries of extraordinary income support allowances, – article 1 of Legislative Decree 5 February 2020, n. 3, converted by the Law 2 April 2020, n.21- GPA management:
“03235” – sums not collected by the beneficiaries Supplementary income treatment for the beneficiaries of redundancy benefits, – article 1 of the DL February 5, 2020, n. 3, converted by the Law 2 April 2020, n.21- GPA Management.
In the event that the supplementary treatment is not due, the reinstatement must be attributed to the newly established accounts listed below:
-GPA25752 Recovery of the supplementary income treatment, paid on behalf of the State, to the beneficiaries of pension benefits – Article 1 of Legislative Decree 5 February 2020, n. 3, converted by Law no.21 of April 2, 2020;
-GPA25753 Recovery of the supplementary income treatment, paid on behalf of the State, to the beneficiaries of extraordinary income support allowances – in article 1 of Legislative Decree 5 February 2020, n. 3, converted by Law no.21 of April 2, 2020;
-GPA25754 Recovery of the supplementary income treatment, paid on behalf of the State, to the beneficiaries of redundancy benefits – in article 1 of Legislative Decree 5 February 2020, n. 3, converted by Law no.21 of April 2, 2020.
Salaries to employees
In order to recognize the burden resulting from the reduction of the tax burden with the recognition of the supplementary income treatment in favor of the employees of the Institute, account GPA35749 is set up, to be charged through the procedure for the payment of salaries.
In the hypothesis of recovery of sums not due to the employees of the Institute, it is necessary to set up a special account to be handled exclusively in the context of the “salaries” procedure, which must be specifically adjusted, as indicated below:
GPA25755 Recovery of the supplementary income treatment, paid on behalf of the State, to employees, – in article 1 of Legislative Decree 5 February 2020, n. 3, converted by the law 2 April 2020, n.21.
The new accounts of the GPA35XXX series will be movable only by the procedures that will make the data available to the Fiscal Platform to take them into account for the purposes of clearing.
The change to the chart of accounts is attached (Attachment 3).
Vincenzo Caridi
