Irpes reform: here’s who gains and who loses in the transition from 4 to 3 brackets

Transition from 4 to 3 income tax brackets, gradual elimination of Irap, two-rate Ires, reorganization of VAT. But also revision of tax breaks, reduction of disputes between administration and taxpayers and attraction of foreign capital. These are the main novelties of the Meloni government’s tax reform, which will most likely arrive on the table of the Council of Ministers on Thursday.

Two years for the maxi reform

After the passage to the CDM this week, the aim is for a lightning approval in Parliament by May, therefore without major political shocks as was the case for the Draghi delegation. The government then asks for 24 months for the implementing decrees that will give substance to the rules. THREE Irpef rates, two Ires

The goal of the legislature is the flat tax for all, passing through the extension of the incremental flat tax to employees. First, however, Irpef will go from 4 to 3 brackets. There are two hypotheses: 23%, 27% and 43% or 23%, 33% and 43%. The resources will come, at least in part, from the revision of the subsidies, with a lump-sum payment based on income which, however, will leave those on mortgages and health care costs intact. For businesses there will be two IRES rates, with a reduction for income destined for investments and new employment which will correspond to the rationalization or elimination of current tax credits.

Zero VAT, goodbye to IRAP

One of the measures already promoted with flying colors by businesses is the gradual overcoming of Irap (starting with small companies), shared by all. Traders and consumers, on the other hand, are looking above all at the reorganization of VAT rates. The delegation is not explicit in what it consists of but the Deputy Minister of Economy, Maurizio Leo, spoke of the possibility of a zero rate (as was the case with the Covid vaccines) for bread, pasta or milk.

Goodbye to mini taxes, here comes the single tax

The goal is to eliminate stamp duty, mortgage and cadastral taxes, but also special cadastral taxes and mortgage taxes which will be replaced by a single tax, “possibly in a fixed amount”. To facilitate the methods of paying taxes and make the collection systems more efficient, the use of electronic means of payment is envisaged.

Tax compliance and review of sanctions

With a view to a better relationship between the tax authorities and the taxpayer, the delegation proposes the exclusion of the forfeiture of tax benefits in the event of formal or less serious breaches. In general, a reduction in obligations and a rationalization of reporting obligations is envisaged, with a boost to pre-compiled forms. With the establishment of the two-year arrangement with creditors and the strengthening of cooperative compliance, the aim is to encourage spontaneous compliance.

Easier to pay by installments

For collection, the goal is a gradual overcoming of the role and simplified access to forms of payment in 120 installments. The sanctions will be reviewed in the event of non-repeated omitted payments and made more proportional to the disputed conduct.