Flat tax, CGIA: “The self-employed continue to pay more taxes than employees”

PNRR Tax E 21 billion collected from compliance letters

(Finance) – With the rise of the flat tax up to 85 thousand euros in turnover, the self-employed continue to pay more taxes than employees. Only in the income bracket between 60 and 65 thousand euros do VAT numbers that make use of the flat tax pay less. This is what emerges from asurvey carried out by the CGIA Studies Office.

Between 10,000 euros of income up to 55,000 euros the self-employed always pay much more than office workers and manual workers, with peaks between 3,760 and 3,875 euros a year in the income bracket between 25 and 30 thousand euros, an additional levy that rises to around 4,200 euros with incomes between 15 and 20 thousand euros. By comparing employees and self-employed workers who do not apply the flat tax, the higher levy for the latter increases dramatically, with peaks, between 60 and 65 thousand euros of income, of over 6 thousand euros a year.

The situation – notes the CGIA – changes sign starting from income class equal to 60 thousand euros. In this case, the self-employed with a flat tax will suffer an annual tax levy of 640 euros lower than employees in 2023. If the comparison is made with an income of 65,000, the benefit rises to 1,285 euros.

In the elaboration of the CGIA the comparison between the two professional categories stops at the income threshold of 65 thousand in euro as by further raising the bar, the turnover of the self-employed worker would exceed the ceiling of 85 thousand euros, a level beyond which the flat tax is no longer applicable.

From the processing of the statistical data of the 2021 tax returns (tax year 2020) it appears that the self-employed (i.e. artisans, traders, freelancers, consultants, micro-entrepreneurs, etc.) who, with the shifting of the turnover threshold up to 85 thousand euros, will be able to benefit from the tax advantage guaranteed by the application of the flat tax could be at most 140 thousand. But “obviously, – highlights the CGIA – the actual beneficiaries of the favorable regime will be fewer, as these VAT numbers, in addition to not exceeding the revenue/fees limit of 85 thousand euros, will have to comply with further requirements established by law; including, for example , not having incurred expenses for employee, ancillary or collaboration work exceeding 20 thousand euros”.

Also according to the data of the 2021 tax returns, i flat-rate taxpayers amount to just under 1,728,000. According to Technical report attached to the 2023 Budget lawit is estimated that the expansion of the revenue/fee thresholds for accessing the flat tax envisaged by the Meloni Government will result in a additional cost for the state coffers of 404 million euros per year. “Despite the flat tax – underlines the CGIA – the self-employed pay more taxes than employees. The new version for the year 2023 could affect a maximum of only 140,000 VAT numbers (equal to 4.2 percent of the total number of self-employed currently do not apply the flat tax), with a cost to the Treasury of ‘only’ 404 million euros a year”.