Tax, how much households and businesses will save with three Irpef and reduced IRES rates - Corriere.it
What are the personal income tax rates in effect so far? And how do they work?
There are currently four personal income tax rates: 23% is applied to income up to 15,000 euros; 25% for those declaring up to 28,000 euros: 35% up to 50,000 euros and 43% for taxpayers with an income of more than 50,000 euros.
There are three possible personal income tax reform hypotheses on the table: all with three rates, which hypotheses are viable?
The first hypothesis foresees a rate of 23% for incomes up to 15,000 euros. This means, according to the estimates of the National Foundation of Italian Accountants, that an employee who declares 35,000 euros will pay an Irpef of 7,382 euros (100 euros less than the current one), a self-employed person who declares the same amount will instead pay 8,709 EUR. For a taxpayer who declares 60,000 euros a year, the hypothesized rate is 43% and therefore will be called upon to pay 17,550 euros of personal income tax (700 euros less than the current situation).
What happens if the three rates were to be 23% up to 28 thousand euros, 33% up to 50 thousand and 43% over 50 thousand euros?
In this case, the clearest difference will be between employees and self-employed who declare from 28 to 50 thousand euros. To give an example: an employee who declares an income of 35,000 euros will pay 7,382 euros in Irpef, a self-employed person who declares the same amount will pay 8,409 euros. Both will save 400 euros compared to current taxation.
What would happen if, on the other hand, the government were to opt for the solution which provides for a rate of 23% for those declaring up to 28,000 euros, 35% for incomes up to 50,000 euros, 43% for those declaring more than 50 thousand euros?
According to the accountants, in this hypothesis only the second bracket (from 15,000 to 28,000 euros) results in an absolute value gain of 100 euros for those declaring 20,000 euros of taxable income and 260 euros for all income above 28,000 euros. EUR. Specifically, an employee who declares 20,000 euros will have to pay 1,957 euros, while a self-employed person with the same declaration will be required to pay 3,828 euros, both of whom will save 100 euros compared to the taxation currently in force. On the other hand, an employee who declares 35,000 euros will pay 7,522 euros in Irpef, a self-employed person who declares the same amount will pay 8,549 euros, saving 260 euros.
Will the move from four to three tax rates benefit some income groups more than others?
In general, according to the accountants, the hypothesized changes involve higher earnings in absolute value for the highest incomes due to the progressive structure of the Irpef in brackets, but in relative terms, the earnings are higher for the lower brackets. In any case, the final effect will depend on any changes made to the No Tax Area and to the system of deductions, rebates and deductible expenses which could significantly affect even the highest incomes depending on the choices made.
What changes for businesses?
The main change concerns the corporate income tax (IRES). The intention of the reform is to make our tax system more attractive, favoring the capitalization of companies and rewarding those who invest and those who hire. The new Ires will therefore have two rates: the ordinary one at 24% and a second reduced tax for the portion of income destined, in the following two years, for investments and/or new employment. The hypothesis that the second rate drops to 15%. A gradual elimination of Irap is also envisaged with priorities for partnerships, associated firms and professional partnerships. It is worth specifying that with the repeal of IRAP, a surcharge for IRES will be introduced at the same time, in order to ensure an equivalent tax revenue.
What effects are expected on financial returns?
The reform provides for a reorganization of taxes on capital and financial income, which will be merged into a single income category subject to taxation on the basis of the cash and compensation principle. Today, 26% is paid on any capital gains deriving from dividends and coupons. With the reform, on the other hand, it will be paid at the time of realization, for example if I sell the title or bond. This provides for the elimination of the tax on accrued assets. The reduction of the tax levy on pension funds is also envisaged.