25 Oct

The draft of 2020 budget law was approved by the Council of Ministers on 15 October 2019.
Among the important changes which it envisages, the reduction of the tax wedge of workers from next year, the sterilization of conditions to safeguard VAT, combating fraud and tax evasion, including through the application of stricter penalties against large tax evaders, In addition, resources are earmarked to encourage investment by industry and other innovations which we will discover together.

Measures of the 2020 financial framework

Both the fiscal decree 2020 and the budget for the three years 2020-2022 have been approved new measures, namely:

- the VAT safeguard clause: in order to avoid an increase in taxes on consumers, which would inevitably lead to a slowdown in trade and distribution, VAT increases of 23;EUR 1 billion has been completely wiped out without reshaping the rates responsible for this growth;
- tax wedge: the tax wedge for workers is to be reduced from 2020 onwards;
- reform of the IRPEF of employees and the tax burden on labour;
- combating tax evasion: new measures have been adopted to combat both fraud and tax evasion.
The first of these is the introduction of tougher penalties against major offenders, followed by measures to combat illicit labour supply plus circumvention of the contractual rules of fictitious or cooperative enterprises.
VAT is evaded by such behaviour and no tax is paid on workers' incomes;
- increased security measures against fuel fraud and gambling.
In the latter, a single register of gaming operators will be established and payments will be blocked for those operating abroad without authorisation.
In order to carry out the necessary checks, incognito agents will also be sent;
- incentive for electronic payments through a super bonus that will be awarded from 2021.
The value of the latter will be commensurate with expenditure through traceable payment methods in areas where the use of cash is still widespread.
There are also financial penalties for all businesses that refuse to accept payments by electronic money;
- health: in the health sector, the abolition of the superticket plus an increase in resources for the Italian health system is envisaged;
- RAI fee: elderly people with a low income will be exempt from this tax;
- pensions: for workers to be protected, there will be an economic subsidy, while women, thanks to the Women’s Option, will have the possibility to claim early retirement;
- public employment contracts: appropriations have been increased to renew contracts for workers in this category.

Budget Law 2020: incentives for businesses

With the Budget Law 2020 the incentives for Industry 4.0 are confirmed:

- hyper and super depreciation: both measures should be extended for three yearssuper depreciation with a 30% surcharge and hyper depreciation  with a 170% overstatement for the purchase of capital goods to promote the technological transformation into a key industrial 4.0.
- refinancing of the new Sabatini Law for the purchase of capital goods, with the inclusion of some novelties: the raising of the maximum threshold from EUR 2 million to EUR 4 million and the possibility to pay the contribution in a single solution up to a maximum of EUR 100 thousand.
- tax credit for training 4.0: the tax credit will be 40% up to EUR 300.000,00.
- tax credit for research and development: 25 to 50% tax credit, up to a ceiling of EUR 10 million.

Find out what has changed since the previous Budget Law: Loans 2019: 45 million to the iot

Budget law 2020: new funds

The 2020 Budget Law, in addition to the above-mentioned manoeuvres, provides for the establishment of new funds to:

- finance state investment;
- finance investments by local authorities;
- encourage the implementation of eco-sustainable projects by private individuals, such as the installation of solar panels or improvements to reduce household energy consumption.

The same applies to the purchase of household appliances with high energy classes, such as A+ or A++.
It should also be noted that the deductions for building renovations and energy upgrading will be extended.