With the budget law, the Meloni government approved the incremental flat tax. Let’s see how it will work and who it is for.
The League’s proposal for a “flat tax” has finally found acceptance, albeit in a slightly different form than the original version. In this article we explain how the incremental flat tax will work and who it will be for.
What is the incremental flat tax and who will benefit from this new tax relief – Ansa Foto – Ilovetrading.it
For years, in the Lega house, there has been talk of a “flat tax” equal to 15% for everyone. The maxim that has always guided this idea – proposed by the ex-senator of the Carroccio, Armando Siri- is “less taxes so that everyone pays taxes”.
Finally the Government of Giorgia Meloni, with the budget law, approved the Flat tax albeit in a slightly different form than the original version. The 15% flat tax, in fact, will not affect all taxpayers but only self-employed workers with VAT numbers with the exception of those who have joined the flat-rate scheme– and will only be applied to a portion of the income, not to all.
Incremental flat tax: this is how the flat tax will work
The tax reform it will not see the light before next year and will involve all the main taxes of our tax system. At that point all workers will pay less taxes thanks to the lowering of personal income tax rates. In the meantime, however, the incremental flat tax has already been approved for freelancers.
How to calculate the incremental flat tax / Ilovetrading.it
The incremental flat tax it will be applied on the incremental part of the income for 2023 compared to the income declared in the previous three years. Put simply: the 15% tax will be applied on the part of the extra income that was produced in 2023 compared to the highest income declared in the three-year period 2020-2022. This measure will replace the Irpef and the related regional and municipal surtaxes.
They will be able to benefit from the incremental flat tax both freelancers who exercise individually and businesses or craftsmen. Excluded are those who have adhered to the flat-rate regime as well as the income of partnerships, attributed to the partners for “transparency” and those deriving from the exercise of arts and professions in an associated form, attributed to individuals.
Calculating the incremental flat tax is quite simple: first of all you need to calculate the difference between the income generated in 2023 and the highest income reported from 2020 to 2022. The deductible of 5% calculated on the highest income of the three-year period will have to be applied to this difference. At this point, on the income thus determined – which, however, must not exceed 40,000 eurosotherwise you will not be able to benefit from the incremental flat tax – the fixed rate of 15% will apply.
Of course, this measure is especially useful for incomes to which a high personal income tax rate is applied, therefore for medium-high incomes. The incremental flat tax, for the time being, it was only approved for 2023. Starting next year, when the changes to the personal income tax rates come to life, we’ll see what happens.