Withholding tax becomes mandatory in many circumstances. Here are the cases in which you are obliged to issue it.
From April 1st they will be there profound fiscal changes in Italynew bonuses, changes in amounts and even unexpected news such as the introduction of withholding tax which becomes mandatory in many cases.
Mandatory withholding tax: in which cases (fiorenzaoggi.it)
The 2024 Budget Law established new rules which were implemented and validated by the Revenue Agency which provided important details and clarifications for citizens. All those who were previously exempt from paying today they are instead required to proceed.
Mandatory withholding tax: the cases in which it must be issued
The withholding tax is a different tax collection system which effectively provides for the payment of a certain amount where this is not paid directly but withheld. For example, if a withholding agent withholds an amount from the compensation and then pays it to the State as tax. In Italy it has been used for a long time for income from self-employment, employees and capital. This is set as ordinary at 20% of the taxable amount and in some cases on commission invoices also up to 50% of the taxable amount. All payments made in this way must then be entered into form 770 to proceed with the payments due.
When will the withholding tax be paid (fiorenzaoggi.it)
The withholding tax therefore becomes mandatory from April 1st it will apply to the commissions of insurance agents, mediators for relationships with companies, insurance entities and anyone who may fall into these categories. With the entry into force of this document we start immediately, so from April 1st it will be paid. What changes therefore is not the mode of operation of the same or the percentages relating to the calculations but the cases in which this is valid and must be applied.
Regardless of the payment maturity date, commissions will now be paid in this way and for insurance agents and brokers 23% will apply in addition to the cash criterion (which remains the same). Therefore up to 50% of the amount of commissions in general, 20% of the commissions in the event that the recipient makes use of the work of third parties. All the indications for understanding counts and charges are officially reported in the clarification of the Revenue Agency circular 7/E of 21 March 2024.
It’s definitely about a radical and unexpected change for many because it will involve a greater expense but it is still a very important change in the system. The exemption that was in force on the commissions received by insurers and brokers who did not have to pay these figures is thus repealed. It is also clarified that, with equal treatment, all are included intermediaries registered in sections d, e and f of the Single Register of intermediaries for the related services.
2024-03-31 19:30:19
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