For craftsmen or traders (not for professionals), the contribution charge applied in the flat-rate scheme is particularly advantageous, as it allows a contribution discount of 35%, on the option of the taxpayer.
For craftsmen or traders (not for professionals), the contribution charge applied in the flat-rate scheme is particularly advantageous, as it allows a contribution discount of 35%, on the option of the taxpayer.
For craftsmen or traders (not for professionals), the contribution burden applied in the flat-rate scheme is particularly advantageous and is a relevant variable in the choice of this scheme, as it allows a contribution discount of 35%, on the option of the taxpayer. The reduction is payable on all contributions due, both the so-called minimum contributions and any income exceeding the minimum income. This subsidised contribution scheme is optional in nature and involves the submission of a special application by the flat-rate taxpayer.
Ordinary contribution
In general, the minimum annual income to be considered for the calculation of the contribution Ivs Inps due for the year 2023 by craftsmen and merchants is 17,504 euros, because, according to article 1, paragraph 3, Law 2 August 1990, n. 233, the minimum daily wage to be used for the calculation of contributions to workers in the craft and trade sectors in force on 1 January 2023 (EUR 53.95) must be multiplied by 312 days (EUR 16,832.40) and the amount of EUR 671.39 added (€17,504), as provided for in Article 6 of Law No. 415 of 31 December 1991 (INPS circular of 10 February 2023, n. 19).
The applicable contribution rates for 2023, up to an income of 52,190 euros (equal to the “first annual pensionable wage bracket”), are as follows:
In addition to the income of 52,190 euros, all 4 rates must be increased by one percentage point, as required by Article 3-ter of Law No. 438 of 14 November 1992.
For the year 2023, the ceiling of annual income within which are due contributions Inps Ivs of craftsmen and traders, “registered for management with effect from before 1 January 1996 or who can claim contributory seniority on that date”, is equal to 86,983 euros (52.190 euros, plus 34.793 euros, that is two thirds of 52.190 euros, according to article 1, paragraph 4, of the Law 2 August 1990, n. 233). On the other hand, for workers without previous years’ contributions at 31 December 1995, registered with effect from 1 January 1996 or later, the annual ceiling for 2023 is 113,520 euro (Article 2, paragraph 18, of Law No. 335/1995).
Facilitation mechanism
The tax advantage dedicated to individual or family entrepreneurs in the flat-rate tax scheme (applicable, from 2023, up to revenues or compensation of € 85,000 for all activities, thanks to Article 1, paragraph 54, letter a), of the Law 29 December 2022, n. 197, which raised the previous limit of 65,000 euros, amending the requirement provided for by Article 1, paragraph 54, letter a), of Law No. 190 of 23 December 2014) is provided for by Article 1, paragraphs 76 to 84, of the Law 23 December 2014, n. 190, and can only be used by members of the INPS traders or craftsmen, only on option, to be sent electronically from their social security drawer for craftsmen and traders (request submitted by means of telematized forms Adhesion/ Waiver of the preferential regime Law 208/2015).
In fact, the incentive is not automatic, but has “optional character and is accessible only by demand”.
In general, for all taxpayers who apply the flat-rate tax scheme (therefore, craftsmen, traders and even professionals, enrolled in the Social Security Funds or the separate management of the INPS), the taxable basis is “consisting of the flat-rate income identified for tax purposes”, therefore, by applying the reductions in revenues and fees with the flat-rate percentages provided for the different types of activities (amounts in column 1 of the line LM34, minus previous losses on income considered to be part of the amount indicated in column 1 of the line LM37, as indicated in each module of Framework LM, section II).
Only for craftsmen and traders, however, you can also opt for the aforementioned Inps facility. Are excluded from this reduction, therefore, all professionals, both those enrolled in the separate management INPS and those enrolled in a special professional fund.
In particular, in case of option, the contribution Inps due is reduced by 35% and this reduction concerns both the income within the minimal Inps, that possibly excess.
Consequently, the calculation of the due from the artisans and the traders will derive from the application of the reduction (-35%) “previewed for law on the total contribution, reported is to the minimal of income, that to the eventual part of income exceeding the minimal”. For example, the minimum contribution of a flat-rate business owner who has joined the INPS preferential scheme for 2023 is 2,730.62 euros (65% of 4,200.96 euros) if he is a craftsman and 2,785 euros (65% of 4,284.98 euros).
In any case, the maternity contribution is due, to correspond to the deadlines for the fixed contribution (circular Inps 19 February 2016, n. 35).
Assisting family members/helpers
Any assistants or assistants also make use of the preferential social security scheme to which the business owner has “decided to join”. In these cases, the tax base on which the holder will have to calculate the contribution due is equal to the “share of income determined on a flat-rate basis” (based on the flat-rate percentages to be calculated on revenues or fees) and attributed to the employee up to a maximum of 49%, “in addition to all other business income that the employee may have received in the tax period” (article 3-bis, decree-law 19 September 1992, n. 384 and circulars Inps 10 February 2015, n. 29, paragraph 1, and 19 February 2016, n. 35).
Consequences of the preferential scheme
If the owner of the flat-rate family business has opted for the contribution facility dedicated to the scheme without VAT, however, some contributory benefits are missing (circular Inps 10 February 2015, n. 29, paragraph 2).
For example, persons who make the option for the INPS subsidised scheme for lump-sum payments (and their assisting family members) who have already retired from the INPS’ management and who are over 65 years of age, are no longer eligible for the reduction of contributions by half. In particular, the “holders of pension at the INPS management and with more than 65 years of age, who intend to use the preferential scheme”, can not benefit at the same time “of the 50% reduction provided for by Article 59, paragraph 15, Law no. 449 of 27 December 1997. This facility, however, may be granted again when the taxpayer leaves the preferential scheme and from the date of restoration of the ordinary scheme, upon submission of a new application (circular Inps 10 February 2015, n. 29, paragraph 2).
With the option of a reduced contribution for lump sums, family workers under the age of 21 who work in enterprises are not entitled to the benefit of Article 1, paragraph 2 of L. 233/90, which would provide for a reduction in the rate of contribution of 3%, subject to progressive increases until the rate of 24% is reached (Article 24, paragraph 22, Decree Law 201/2011).
The option in the business start year
Taxpayers who start a new business in 2023, for which they intend to join the flat-rate scheme, must communicate this will “with the maximum timeliness with respect to the date of receipt of the resolution of registration to the pension management” (circular Inps 19 February 2016, n. 35, paragraph 3), in order to allow the Institute the correct and timely arrangement of reduced annual fees (circular Inps 12 February 2018, n. 27). The telematic procedure described in the circular of 10 February 2015, n. 29, paragraph 3, should be used at the following internet address: www.inps.it: access to the “Art Com Drawer”, selecting the item «Telematized Applications», Regime facilitated ex. Art.1, paragraphs 76-84 L. 190/2014 – Membership.
If the declaration of accession reaches the INPS “by the date of the start of the first useful processing, ordinary or within-year, for the purposes of the request for payment”, the preferential pricing “will be applied immediately” and in the social security drawer will be available models F24 pre-compiled with Inps codes and deadlines for the new scheme, to be used for payments.
Option in the year following the start of the activity
Those who, instead, undertook in 2022 or previously a new business activity not in the preferential tax system and at the beginning of 2023 have switched to the flat-rate scheme, to benefit also from the reduction of contributions INPS, had to notify its accession to the INPS facilitated scheme by the mandatory deadline of 28 February 2023.
If this deadline has not been met, access to the INPS preferential scheme is not allowed for 2023, but a new application must be resubmitted by 28 February of the following year and the facility will be granted with effect from 1 January of the relevant year (circular Inps 19 February 2016, n. 35, paragraph 3).
Automatic renewal
After access to the contribution facility, it is not necessary to repeat the option every year, if the requirements of the tax advantage remain. The clarification is contained in the circular Inps of 31 January 2017, n. 22, which provided that the reduction applies in the year to all “subjects already beneficiaries of the preferential scheme” in the previous year, provided that they do not expressly renounce it. This interpretation was also confirmed by the Inps circular of 10 February 2023, n. 19, paragraph 8, according to which the 35% contribution reduction also applies in 2023 “to persons already beneficiaries of the preferential tax and social security scheme in 2022 who, where the tax relief requirements for the year 2023 remain, have not expressly waived the same”.
Cessation
The preferential contribution scheme, of course, ceases “from the year following that in which” are “less than the requirements for access” to the flat-rate tax scheme (message n. 1035/2015, circulars Inps 10 February 2015, n. 29, paragraph 4, and 19 February 2016, n. 35).
The exit from the preferential scheme Inps, can also happen for “choice of the taxpayer, regardless of any reason, to abandon the preferential scheme”.
Finally, the preferential scheme can be terminated following a communication to the INPS “by the Revenue Agency, regarding the fact that the taxpayer has never joined the preferential tax system, or has never been eligible to join”. In this case, the “ordinary scheme will be imposed retroactively, with the same effect that was set for the preferential scheme” (circular Inps 19 February 2016, n. 35, paragraph 3).
According to an outdated interpretation of the INPS, contained in the circular of 10 February 2015, n. 29, paragraph 4, if the exit from the preferential scheme was caused by the “disappearance of the requirements” of access to the benefit or “choice of taxpayer, irrespective of any justification”, the ordinary scheme was «reinstated on 1 January of the year following the submission of the declaration of loss of requirements or the application for exit», which therefore had to be submitted, for example, by 31 December of the year of exit (for example 31 December 2017), to allow the application of the ordinary scheme Inps from 1 January of the following year (in the example, from 1 January 2018)following the loss of the requirements for the flat-rate scheme between the two years (between 2017 and 2018). The institute itself, however, realized that “often taxpayers” were not “able to determine, by December 31 of each year, the possible loss of the requirements occurred” during the same year, then, on January 3, 2019, with a special message, the INPS has established (exceeding what said in the circular Inps of 10 February 2015, n. 29, paragraph 4) that the aforesaid declaration can be communicated to the Institute «within 28 February of the year following the loss of the fiscal requirements»thus restoring the ordinary contribution scheme from “1 January of the same year”. Thus, those who left the flat rate in 2023, had to send the communication to the INPS by February 28, 2023.
The communications that will arrive to the INPS from 1 March of each year, instead, will determine “the restoration of the ordinary contributory regime with effect” from 1 January of the following year”. Therefore, if in September 2023 you notice, preparing the model Incomes 2023 PF, related to 2022, that you have left the flat-rate tax system from 1 January 2023, for lack of requirements, the communication of exit from the INPS facilitated scheme was to be sent electronically by 28 February 2023. Therefore, this communication is omitted and benefited from the INPS preferential scheme in 2023, without being entitled to it.
Note that the INPS message of 3 January 2019, which gives the possibility to communicate the non-application of the INPS preferential scheme from the first year of non-application of the flat-rate tax regime, requires the communication to the Institute «by 28 February of the year following the loss of tax requirements», without dealing with the case of exit from the preferential scheme Inps “by the choice of the taxpayer to abandon” the same, “regardless of any motivation”. In these cases, therefore, should still be applicable the rule of circular Inps of 10 February 2015, n. 29, paragraph 4, according to which the ordinary regime is «restored from 1 January of the year following the submission» of the «application for exit».
Example
If in January 2024 you notice that the 2023 revenues have exceeded the limit of 85,000 euros, you leave the flat-rate regime from 1 January 2024, for lack of requirements, therefore, the communication of exit from the facilitated scheme Inps must be sent by 28 February 2024.
Boarding house
For “the credit of the contribution” Inps for pension purposes of lump sums, applies “the provision referred to in Article 2, paragraph 29, of Law 8 August 1995, n. 335”, provided for the separate management Inps, according to which the subjects who pay an INPS contribution not less than that calculated on the minimum income provided for the INPS management of craftsmen and traders (for example, 4,200.96 euros for a craftsman for 2023)all monthly contributions for each calendar year are credited, whereas if the annual contribution is less than this amount, the contribution months to be credited are reduced in proportion to the amount paid, with attribution from the beginning of the calendar year.
Therefore, if the amount paid by the lump sum subscribed to the Inps contribution facility is lower (considering the minimum contributions and those on excess income) than the ordinary amount of the contribution due on the minimum income (for example, 4,200.96 euros for a craftsman for 2023), will be credited a number of months proportional to the amount paid.
For example, if the annual income of a lump sum in 2023 is not higher than the minimum income Inps (for 2023 of 17,504 euros) and, therefore, only minimal contributions are paid, with the reduction of 35%, the months credited for 2023 are 7.
Therefore, the option for the Inps contribution reduction must be carefully evaluated, considering its effects also for the purposes of the future pension treatment.
Model Incomes FP
In the framework of the RR of the personal income declaration, column 7 of the RR2 and RR3 lines shall be completed by letter C, corresponding to the “lump-sum worker participating in the facilities” provided for in Article 1, paragraphs 77 to 84 of Law December 23, 2014, n. 190, which provides for a reduction of 35% on the contribution determined, pursuant to Article 1, paragraph 111, of Law December 28, 2015, n. 208.
Deduction of contributions
In general, flat-rate taxpayers’ income is “deductible from social security contributions due by law”, including those paid on behalf of “employees of the family business tax-dependent” and those “paid on behalf of employees who are not fiscally dependent, provided that the holder has not exercised against them the right of recourse”.
If the contributions paid are higher than the entrepreneurial or self-employed income determined by applying the profitability coefficients, the surplus may be deducted from the total income (Article 10 of the Tuir).
In addition, any excess of social security and welfare contributions paid by a taxpayer who applies the flat-rate scheme and who is fiscally dependent, can be deducted, as a charge (Article 10, paragraph 2, of the Tuir), from the family members of Article 433 of the Civil Code (circular 4 April 2016, n. 10/E, paragraph 4.3 and circular 30 May 2012, n. 17/E on the tax system of advantage, that is of the minimums).
Luca De Stefani
In-depth analysis of Studio De Stefani in the article by Luca De Stefani on Tabloid about Il Sole 24 Ore of 22 may 2023
