(Finance) – The first measures envisaged by the tax reform will come into force starting from January 1, 2024 and they will be those that do not provide any financial coverage. Among the first measures, the biannual composition with creditors mechanism will come into force for small and medium-sized enterprises and the expansion of the compliance mechanism to companiesmedium-large companies with turnovers of up to 100 million euros.
The Deputy Minister of Economy explained it Maurizio Leo to Telefisco de il Sole 24 ore underlining that “the objective is to reduce Italy’s tax gap which is calculated between 75 and 100 billion – explained Leo – with the composition with creditors the small business can adhere to the tax proposal, and if it sticks, anything you earn extra in the second tax year is not taxed and is therefore exempt from taxation.”
Leo also explained that concern of the government is linked to public accounts. “Due to the increase in rates – he said – Italy will have a further interest expense relating to public debt securities of around 14-15 billion and we must be absolutely cautious”.
To get a clearer picture we will have to wait until September 27 next with the arrival of NaDEF documents. The first rule to be renewed is that of the tax wedge which must be renewed from January 1st 2024. However, if the conditions are there – continued the Deputy Minister of Economy – we will be able to build a three-rate mechanism with the 23% rate which embraces the first two and therefore with a tax rate of 23% up to incomes of 28 thousand euros; today it stops at 15 thousand. If all conditions are met we will move to a three-rate system.”