SCP for Children’s Sports
August 6, 2024
Spin-off Demergers – Tax Aspects
October 29, 2024INELIGIBILITY FOR USE OF THE BIENNIAL ADVANCE TAX AGREEMENT FOR TAXPAYERS WHO EXCEEDED THE €85,000 THRESHOLD BUT REMAINED UNDER €100,000 ANNUALLY
With regard to access to the Biennial Advance Tax Agreement (Concordato Preventivo Biennale – CPB), we examine the case of a taxpayer who, during 2023, fell under the flat-rate tax regime (regime forfettario) but earned income exceeding the €85,000 annual threshold, yet remained below the €100,000 limit, which would have caused immediate disqualification from the regime in that same year.
In this case, the taxpayer cannot apply the CPB for flat-rate taxpayers for the 2024/2025 period, as explicitly excluded by the Ministerial Decree of July 14, 2024 (Art. 2, end of the first paragraph).
At the same time, the taxpayer cannot apply the CPB for ISA taxpayers either, since they did not apply the ISA (Synthetic Reliability Indexes) in the 2023 tax year.
The Italian Revenue Agency (Agenzia delle Entrate) has also provided a direct response on this matter in Circular No. 18 of 2024, question 6.8, which is quoted below:
“6.8 Threshold for flat-rate taxpayers
Q: Article 2 of the ministerial decree for CPB flat-rate taxpayers states that a CPB proposal is to be formulated only for those who, in the 2023 tax year, did not exceed €85,000 in revenue/compensation. Can those who exceeded this threshold in 2023 instead accept a CPB proposal under the ISA rules for 2024/2025?
A: Article 2 of the ministerial decree for CPB ISA taxpayers provides that a CPB proposal can be made for taxpayers who applied the ISA regime in the tax year ending on December 31, 2023. Therefore, in relation to the question posed, a taxpayer who exceeded the threshold for applying the flat-rate regime in 2023 cannot adhere to the CPB proposal under the ISA regime for 2024/2025, as they did not apply the ISA in 2023.”
