The new tax rules in Italy you should know about: IMU, TASI and more

The new bill from the Italian political parties M5S and Lega, the so-called "simplifications package" or "pacchetto semplificazioni", has been given the green light by the House of Representatives and will now go to the Senate. What are the new deadlines for the IMU and TASI tax declarations in Italy? What effect will this new bill have on the Cedolare secca flat rate tax scheme and the annual expenditure? Let’s find out.

Created to simplify as much as possible the bureaucratic requirements for taxpayers in Italy, the pacchetto semplificazioni special tax regime 2019 contains about thirty articles that revive the principles of the statute of taxpayers. Among the proposals of a purely economic nature are:

• The creation of an annual expenditure metre
• Changing the tax return deadline and IRAP from 31st October to 30th November
• Obligatory compensation law for the Agenzia delle Entrate tax agency: it will be able to introduce new requirements only after removing the previous ones
• Simplification of the synthetic indexes for fiscal reliability: data already indicated in the declarative model should not be replicated
• Discounts of 25% for those who buy three-quarters of their products made up of recycled waste
• Reimbursement of municipal taxes to those who reopen closed shops in towns with under 20 thousand inhabitants
• From 2020, before starting a tax assessment, the tax office will have to call on the taxpayer to defend themselves in an adversarial manner
• In the case of formal control of tax returns, the tax administration cannot ask taxpayers for certificates and documents that are already available in the tax register (e.g. already endorsed by banks, pharmacies or insurance companies)
• 15 day period for issuing electronic invoices
• Removing one of the four periodical communications on VAT liquidations: the fourth quarter update can be subsumed into the total at the end of the year
• Firms in compliance with the payment of taxes will have a preferential channel for the granting of authorisations and concessions

New deadline for the IMU and TASI tax declarations in Italy

Currently, the declarations for the IMU and TASI property taxes must be submitted by 30th June of the year following that of the change in the ownership of the property which led to reductions in housing taxes. Under the new provision, the new deadline for IMU and TASI declarations will be 31st December.

Extending the ‘Cedolare secca’ flat rate tax scheme

One very important change in the simplification package also concerns the abolition of the obligation to notify the intention to use the extension of the Cedolare secca tax regime. Up to now, if a landlord wanted to extend the subsidised flat rate tax scheme, they had to make an official notification. Now they won’t have to, but even if the late notification of the extension does not entail a forfeiture of the scheme, there is a fixed penalty of between 50 and 100 euro for delays of more than 30 days.

Taxes on uncollected rent

From 2020 onwards, landlords whose tenants don’t pay rent will no longer have to wait for the eviction notice before they can apply for immunity from rental taxes. Another new feature in the Italian real estate market is the elimination of the TASI from 2022 for construction companies that have failed to sell or rent their new developments.

VAT on tampons and female sanitary towels: no news is bad news

However, one glaring omission from the new bill concerns VAT on feminine hygiene products. Tax on products like tampons and sanitary pads in Italy now stands at 22%, and despite calls from many sectors of society the new bill contains no hard and fast information on the reduction of VAT to 5%. According to the State Accounting Office, the cost of decreasing VAT for tampons to 10% would be 212 million euro, and over 300 million to change it to 5%.