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CURA ITALIA DECREE LAW 18 OF 17 MARCH 2020

Below is a brief and simple summary of the main measures adopted by the Government through the Cura Italia Decree. We will be keeping this guide updated with any new information as it becomes available.

Cura Italia Decree: Suspension of payments due between 8/3/2020 – 31/03/2020

Cura Italia Decree Law

VAT registered companies and professionals with their fiscal domicile, registered office or place of business in Italy, whose turnover did not exceed €2 million in the fiscal year preceding the entry into force of the Cura Italia Decree (2019), are eligible to defer the following payments:

– VAT (balance due on the Vat return and payment due on February 2020)

– Withholding Tax on employee / similar  income

– Social Security Contributions

These payments are now due by 31/05/2020 in full, or can be made in 5 equal instalments starting from May 2020. No interest or penalties will be applied.

Cura Italia Decree: Suspension of obligations due between 08/03/2020 – 31/05/2020

  Previous Due Date New Due Date
VAT Return 30/04/2020 30/06/2020
TR Form 30/04/2020 30/06/2020
Esterometro (Jan./Feb./ Mar.) 30/04/2020 30/06/2020
Intra Form 25 monthly taxpayer or quarterly 30/06/2020
SSP Form 30/04/2020 30/06/2020
EAS Form 31/03/2020 30/06/2020

The expiration dates for Income tax returns and IMU Return have not currently been extended. These tax Returns must be submitted on 30/11/2020 and 30/06/2020 respectively.

There have also been no changes to income tax deadlines with reference to payments. Payments are due in June (30/06/2020) and November (30/11/2020) respectively based on the self-assessment declaration system.

With reference to companies, the Cura Italia Decree provides an extension for the approval of financial statements to 180 days from the closure of the financial year with the consequent deferment of the payment of taxes. A summary table is provided below.

  Date Income tax payments
Approval within 120 days from end of 2019 30/04/2020 (regular) 30/06/2020 – 30/11/2020
Approval within 180 days from end of 2019 28/06/2020 31/07/2020 – 30/11/2020
Approval within 180 days from end of 2019 (maximum add 30 days) 28/07/2020 31/08/2020 – 30/11/2020

Specific simplifications, such as video-conferencing, are foreseen for the convocation of shareholders’ meetings for the approval of the annual financial statements.

With reference to IMU (property taxes) payments, the deadlines are the same (16/06 and 16/12).

Cura Italia Decree: Suspension of payments due between 2/3/2020 – 30/04/2020 for hospitality and leisure sector

A further extension of payments of one additional month is expected for companies in the tourism-hotel sector with reference to VAT, withholding tax, social security contributions.

These tax liabilities must be paid in full by 31/05/2020 or in 5 instalments from that date.

Cura Italia Decree: Payments to Tax Collection Agency (Agenzia Riscossione)

The Cura Italia Decree provides for the suspension of tax payments due in the period between 08/03/2020 and 31/05/2020 arising from bills issued by Tax Collection Agents.

The suspension applies also to acts/notices issued by the Italian Customs Agency, injunctions and further collection acts issued by municipalities or local authorities.

Suspension also applies to payments of facilitated settlement of tax bills (Rottamazione-ter). Instalments due in February are deferred until 31/05/2020.

Cura Italia Decree: Other debts with Collection Agency (Agenzia Riscossione), INPS, Customs or other implementing acts expiring between 8/03/2020 – 31/05/2020

All debts mentioned above are deferred until 30/06/2020. The suspension does not include any payment reminder notices from the Revenue Office (Agenzia delle Entrate).

Other measures provided for by Cura Italia Decree

  • There is a tax credit of 60% on rent for commercial premises (cadastral category C/1) for March 2020 with reference to activities which the decree has prohibited operations.
  • Companies can activate lay-off procedures (Cassa Integrazione).
  • There is an income replacement allowance for registered VAT individual entrepreneurs or professionals who have been laid off Euro 600.00 per month in lieu of income. The application procedures have yet to be announced; the payment of this allowance will be borne by INPS.
  • Requests for a suspension of first home mortgage payments is to be made to the relevant credit institution.

This summary cannot and is not intended to be exhaustive of the contents of the Cura Italia Decree, but simply a brief overview of the measures that the Government has adopted. Operational instructions to implement the measures are pending.

We are available to provide a more detailed explanation. Contact us, we can help.