All the new tax rules approved by the government
What has the government approved regarding taxation and not just with a law decree? Here are the details and rumors about the projects in the pipeline
What did the government approve yesterday regarding taxes and more?
Here are some salient aspects that emerge from the press reports and from a point from Ansa . ( here is the government press release )
FLAT TAX AND SURROUNDINGS
On the tax front, the favorable regime for foreigners who establish residence in Italy is being revised, with the flat tax going from 100 to 200 thousand euros. The regime remains "interesting" says the Minister of Economy, Giancarlo Giorgetti, but "the government is against competition to create favorable tax situations for people and businesses. If this race begins, countries like Italy, which have very limited fiscal space, are inevitably destined to lose." The decree implementing the fiscal delegation for the reorganization of indirect taxes, excluding VAT, was also approved. In particular, incentives are provided for successions in the case of sole heirs under the age of 26.
THE COMPLETE PICTURE ON TAXES AND PUBLIC FINANCE
Italy is growing, employment is rising and revenues are increasing, but it is still early to count the resources that the next budget will have available.
Economy Minister Giancarlo Giorgetti remains cautious in the face of partial mid-year data which also indicates a larger flow into state coffers than last year. “Let's wait”, is the invitation he addresses to those who glimpse substantial treasures, from 10 to 20 billion, in the tax results. Not all the data is there yet, and partial estimates risk leading us astray, he warns at the end of the last Council of Ministers before the summer break which gave the green light to the omnibus decree: measures ranging from taxation to local authorities for the contribution for the displaced inhabitants of the Vele di Scampia and the increase from 100 thousand to 200 thousand euros in the flat tax for the 'Scrooges' who transfer their tax residence to Italy.
HUNT FOR RESOURCES FOR THE 2025 BUDGET LAW
It is no mystery that the hunt for resources for the 2025 budget law has started and that Giorgetti will continue meetings with the other ministers in the next few days to collect the wishes and remind everyone that the blanket is very short. This year even more, given that the deficit space is already entirely reserved by the correction for the new Stability Pact, while at least 20 billion are needed to confirm the measures financed for this year alone, starting from the cut in the wedge and the remodulation of Irpef.
DOSSIERS ON BANKS AND MORE
The good performance of revenues (in the first six months of 2024 they recorded a +4.1%, around 10 billion more) can help, but this is not the time to draw conclusions: "It's not like one gets within 100 meters of finish line and says I won", explains Giorgetti, recalling that we still have to wait for the July results of the self-liquidation payments, and other extended deadlines such as the fifth installment of the scrapping in September and the composition with creditors in October. Revenue, the latter, is difficult to predict. “We wait for the end, because that is the moment of truth. Then we will make our assessments”, underlines Giorgetti. Certainly, however, banks' extra profits will not be taxed to raise cash.
“But taxes on profits yes, like for everyone else”, clarifies the minister, who sees “nothing strange” if “banks, like other entities that make profits, that are doing well, will be called like all citizens to contribute to public finances". Not even the most important deductions will be touched, while "assessments will be made for tax credits or deductions of lesser importance", assures the Deputy Minister of Economy with responsibility for Finance Maurizio Leo.
THE OTHER MEASURES APPROVED BY THE GOVERNMENT WITH YESTERDAY'S DECREE
For the rest, the Council of Ministers definitively approved two other legislative decrees of the fiscal delegation, increasing the approved legislative decrees to 13. The two measures concern two sectors: customs and indirect taxes other than VAT (inheritance and donations, trusts, registration tax and stamp duty). On customs, "a Copernican revolution is being implemented compared to a single text of over 300 articles which has been reduced to 120", explained Leo. While indirect taxes are regulated by the 'trust' which currently has no regulatory codification, and the legislation on inheritances is simplified so that banks immediately free up the sums to pay mortgage taxes when an inheritance is opened.
Furthermore, the ministers also gave the green light to the doubling (from 1.6 billion euros to over 3.2) of the tax credit resources for investments in the single SEZ of the South from 1 January 2024 until 15 November 2024. The Minister of European Affairs, South, Cohesion Policies and Pnrr, Raffaele Fitto, speaks of "completely instrumental controversies" that have erupted over the SEZ credits in recent days, and underlines how the approved allocation is five times higher than that expected in the years 2016-2020.
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EXTRACT FROM AN ARTICLE FROM THE REPUBLIC ON TAXES AND BANKS:
The Department of Finance is working on a new intervention on banks. A discussion with the ABI has already been started: the first signs, however, do not reflect a positive climate. Also because it is the government technicians themselves who are doubtful about the feasibility of the measure. Here's the idea: force banks to pay their account holders the interest earned on the liquidity deposited in their current accounts. The legal obligation would simply introduce a general provision, without quantifying the sums owed. And already thus the risk of unconstitutionality is high. But the benefit to the government is too tempting not to try. If the rule were applied, in fact, citizens would obtain a remuneration on their savings, while the State would collect the so-called capital gain of the interest accrued. Moral: the banks, which to date have collected significant profits thanks to the increase in official discount rates, would be obliged to remunerate their customers and in doing so they would also guarantee tax revenue to the State. Today, capital gains from financial income are taxed at 26%: for every 100 euros of interest paid to account holders, the State would collect 26. It is not the solution to the problems of the financial institution in search of resources. But the "collage" method is the only one possible for the government which this year cannot count on extra-trade deficit relief. Giorgetti ruled out the use of a tax on extra profits, but at the same time made it clear that the banks will have to concede something: «Like other entities that make profits and like all citizens – he commented – the banks will also be called upon to contribute to the public finance". A move that would also bring consensus given that, as First Cisl points out, "the top 5 banks made profits of 12 billion" between January and June. We will talk about it in September, when the margin that the good revenue performance (around 10 billion more in the first half of the year) can guarantee will be clear. This is why the head of the Treasury invites us to take an example from the Olympics where, he notes, «it's not like one arrives within a hundred meters of the finish line
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/tutte-le-nuove-norme-sul-fisco-approvate-dal-governo/ on Thu, 08 Aug 2024 06:10:26 +0000.