August Decree: tax payments, tax advances and enforced collection

Further division into instalments of suspended payments and non-applied withholdings - art. 97

The August Decree has introduced the possibility to further divide into instalments suspended tax payments and non-applied withholding pursuant to articles art. 126 and 127 of Law Decree no. 34/2020 (Rilancio Decree) turned into Law dated 17/07/2020 no. 77.

Suspended tax payments can be fulfilled without applying any interest or penalties for an amount equal to 50 percent of total suspended amounts, either through a single payment by 16 September 2020, or through no more than four equal monthly instalments, the first of which being due by 16 September 2020.

The remaining 50 percent of total amounts due can be paid without applying any interest or penalties through up to 24 monthly equal instalments, the first of which being due by 16 January 2021.

These payment methods are also applicable to withholdings for those individuals who availed themselves of the possibility to require their withholding agents to be excluded from said withholdings with reference to revenues and considerations obtained in the period included between 17 March and 31 May 2020. Payment already made cannot be refunded.

See the PDF file for a chart summarizing the most relevant cases.

Extension of the second advance payment of the synthetic tax reliability indicators (ISA) - art. 98

Taxpayers, subject to the synthetic tax reliability indicators (ISA) who reported considerations not exceeding the threshold set forth in the decree approving each indicator (generally equal to Euro 5,164,569), who reported at least a 33% reduction in turnover in the first 6 months of 2020 compared to the same period of 2019, can benefit from an extension until 30/04/2021 of the payment of second IRPEF/IRES and IRAP advance payments due for the tax period following the one underway at 31/12/2019.

Further to the specific reference to art. 1, para. 2 of Decree of the President of the Council of Ministers of 27 June 2020 (in the Official Gazette n. 162 dated 29 June 2020), the measure is to be intended extended to the following categories:

• taxpayers adopting a flat-rate taxation regime
• taxpayers in the so-called minimi regime, i.e. facilitated tax regime for lower earners
• all taxpayers who report causes for being excluded from the synthetic tax reliability indicators (ISA) reporting other than the abovementioned ones concerning revenues;
• subjects who participate in companies, associations and businesses pursuant to articles 5, 115 and 116 of the Consolidated Text on Income Taxes, as per Presidential Decreed n. 917 dated 22 December 1986 (generally members of partnerships and shareholders of Italian limited liability companies under a fiscally transparent regime).

Extended suspension of enforced collection - art. 99

The August Decree introduces an extension of the terms for the payment of tax debts assigned to a Collection Agent, an extension of executive and precautionary measures and an extension of the suspension of inspections ex art. 48-bis of Presidential Decree 602/1973 on the blocking of Public Administration payments.

See the PDF file for more details.