As the new year approaches, the Italian government has issued the Budget Law for 2019 which provides for several concessions for those who have filed their tax returns. The 2019 Budget also contains new regulations related to finance and employment. Foreign investors interested in opening companies in Italy can rely on our company formation agents for information on the legislation favoring them.
The first thing to be noticed is that the new Budget Law was created in order to respect the demands of the European Union. The new Finance Law also plans on respecting the recommendations of the European Council and provides for a 20% tax rate for the outstanding amounts of money for those who have already submitted the tax returns.
Italian taxpayers will also have the possibility of filing additional tax returns, however, these will be limited to 100,000 euros for the fiscal year or 30% of the amounts already declared. The authorities encourage the avoidance of litigations by allowing the payment of 20% of the undeclared incomes for 5 years without any other additional interests or fines. Taxpayers will be allowed to pay in 20 installments of 5 years, while the debts accumulated between 2000 and 2010 will be written off.
Our Italian company formation consultants can offer information on the taxation system applicable in this country.
Apart from the tax concessions, the government also plans on allocating more money for the improvements of job centers which are expected to help Italian citizens and increase the employment levels.
The national training system will also be re-organized so that at the middle of 2019 a new system will be put in place. Another important measure covered by the new budget refers to the universal basic income which should also be introduced in the first quarter of the incoming year.
The flat tax rate which already existed will also suffer minor changes, as the government plans on including self-employed individuals and several types of enterprises which will benefit from a 5% discount on the current corporate tax.
For more information on how companies are taxed in Italy and assistance in starting a business, please contact us.