The so called Budget Law 2017 provides a series of Important amendments to the existing provisions on tax, some of which are going to be already operative since the same year. In fact,  2017, promises to be a year of revolution for periodical activities and is going to introduce, among others, new obligations over both Companies and Professional, nonetheless with  a few operational complications due to a greater number of deadlines and obligations which are going to impact on all the companies, commercial or craft, simplified  or ordinary, up to big international groups.

It should be remembered that by January 31^st 2017 the Government – together with the Italian Revenue Agency -  has to issue a special Decree Implementation aimed at clarifying the many regulatory provisions and  the operational compliances.

Among the new 2017 Financial Law, at first, the extension of benefits of Maxi Depreciation and amortization (140%) has been confirmed: the percentage increase of 40% of the tax recognized cost of new capital goods, the so-called super-depreciation, through which amortization and  highest rents can be charged during the tax period.

The purchase of new capital goods are subsidized, except for vehicles and other means of transport whose deduction is limited according with art. 164 ph. 1 letter. b) and b-bis) of the Income Tax Code; in order to be like that, however, the purchase shall be carried out within 31.12.2017 or within 30.06.2018  as long as within 31.12.2017 the relative order may be accepted by the seller and the payment of at least the 20% of the entire price has been paid.

The 2017 Budget Law, then, enhances the aforementioned measure by providing that the purchase cost shall be increased until 150% (so called Hyper Amortization) for investments costs in new materials, which are functional to the technological and/or digital of the enterprises.

Moreover, it is provided that the purchase cost can increase by 40% for subjects which are admitted to benefit from the aforementioned increase (150%) and in the same tax period make investments in equipment intangible assets.

The budget adjustment includes, then, a de-taxation for Companies that adhere to the individual savings plans and an exemption up to 30% for those who invests in Start-Ups. In particular, it is expected that the so called Sponsor Companies, which decide to economically support the new enterprises, will benefit from Tax Deductions 30% of investments up to 1 million Euros. Moreover, the loss of the start up will, for the first three years, be absorbed from the Companies sponsor, notwithstanding with the principle of fiscal consolidation.

A further incentive for companies is provided by applying the IRI on individual and partnership companies which use the ordinary accounting rules, at a percentage of 24%. This provision is subject to an option of 5 years duration. Such a tax audit on taxation could allow, even for those with a sole proprietorship or a partnership, a trader or a craftsman, to pay taxes splitting the Corporate Income tax and the Personal Income tax, similarly to what happens to Shareholders of S.p.A. Therefore, on the Corporate income Tax - although in a partnership form – not distributed along the business partners, the IRI will be applied at 24%, while the sums produced by the company, but taken by the business partners, will be taxed as Personal income tax.

Of particular interest, the provision of the change in the accounting philosophy of simplified accounting regime. According to what stated, in fact, "As from 2017, the company simplified accounting determines the application of the cash principle. For accounting aims are due separate Registers Record, into which it shall be registered respectively the revenues and the expenses incurred. Alternatively, the VAT Registers, into which the yearly report of the total amount of revenue/expenses not collected/paid is reported, can be used. For simplified subjects there is the opportunity to opt (with validity at least three years) for the presumption of collection/payment of revenue/ expenditure in the year of the document annotation in the VAT Registers. The option of the ordinary accounting is in any case still permitted”.

Essentially, since 2017, what will be relevant for tax purposes is the actual collection or at least the payment of the same, not the date on the accounting documents.

Among other new features, the Budget Law include:

• Interesting changes to corporate welfare systems for employees.
• Operating concessions on VAT Group for groups of related companies.
• Increments, for Sales Agents, of the fiscal significance limit to € 5,164.57 for the long-term rental of vehicles.
• Possibility of revaluation of land and investments using substitute tax of 8%.
• Revaluations of existing corporate assets at  31.12.2015 in Balance sheet 2016.
• Facilitated allocation of goods to members and the ousting of business properties.
• Travel expenses and allowances charged to the customer excluded from the computation of income for Professionals, although non-billable according art. 15 Presidential Decree 633/1972.
• Extensions of credit provision set for R&D activities for a minimum of € 30,000.00 per year.
• Tax incentives for repatriated workers and a new tax on foreign income.
• Changes to the Tax Loss carry system.
• For 2017 the ACE is fixed at 2.3% while for 2018 to 2.7%.
• Simplifications for the compilation of the RW framework for property abroad.
• Reduction in the area INPS, 25% of the rate for the Separate Account.
• Increase in personal income tax deduction for retirement income.
• RAI license fee for private use set at € 90.00.
• Extension of  “Sabatini Ter” up to 31.12.2018 for capital investments.
• Renewal of the birth prize of € 800 together with a voucher nursery of € 1,000.
• Confirmation for 2017 of the current VAT rates.
• Stop to many of the “Intrastat” communications and Black List.
• Green light for VAT refunds to debtors of € 30,000.
• Sector Studies replaced by Synthetic Indicators of the Taxpayer Reliability.
• Change in the rules that link the assessment revenue to withdrawals and deposits up to € 5,000 monthly and € 1,000 daily, leaving in fact wider financial flexibility.
• Renewal of concessions for building deductions (50%, furniture and appliances including A+, with its ceilings) and upgrading the energy efficiency (65%) with benefits up to 75% for condominiums.
• Admitted the ordinary transfer provided traceable.

 

At least, it appears necessary to imply about the introduction of the VAT Quarterly Compulsory Liquidations Communication, which must also be made in the case of credit surplus. For those who have more activity is expected a single summary communication. Therefore, the fulfilments increased to three a year, compared to the previous legislation that used to require only one of them. The same sort has been applied also fotr what concerns the “Spesometro”, whose frequency passes from annual to quarterly; taxable persons should send their invoices, and receipts recorded (also including customs forms and the data of the relative changes) directly to the  Italian Revenue Agency, except for passive operations outside the scope of VAT. Under a subjective point of view, however, there will only be exempted agricultural producers located in mountainous areas.