With its publication in the Official Gazette of the Italian Republic no. 304 dated 30th December 2019, Ordinary Supplement no. 45, the Budget law , Law 160 dated 27th December 2019comes into force from 1st January 2020.
The main changes include the extension to the end of 2020 of the exemption for contribution payments for young people under the age of 35, a significant tax relief for 1st level apprenticeship contracts and a series of revisions on tax aspects, like modulating the taxation of vehicles granted for mixed-use on the basis of the pollutant emissions and the increase of the exemption for electronic luncheon vouchers, with a simultaneous reduction for paper vouchers (starting from 2020, the limit drops from 5.29 to 4 euro).
1st level apprenticeship tax relief
|Article 1, (8)||In order to promote youth employment, for the year 2020 Employers which have 9 or less employees on their books are acknowledged 100% tax exemption regarding the contributions payable for the year 2020 for 1st level apprenticeship contracts for the qualification and the professional diploma, the secondary higher education diploma and the certificate of higher technical specialisation as laid down by article 1, (773), fifth sentence, of Law 296/2006, for the contribution periods matured in the first 3 years of contract, without prejudice to the rate level of 10% for the contribution periods matured in the years of contract subsequent to the third.|
Revision of Inail (workplace accident insurance) fees
|Article 1, (9)||With this provision article 1, (1121), of Law 145/2018, with the cancellation of the following sentence “with effect from 1st January 2019 to 31stDecember 2021 and from 10th January 2023”, in order to make the financial statement items structural for the revision of the Inail fees.|
Extension of tax contributions exemption for under 35s and updates of Bonus Sud legal references
|Article 1, (10)||The tax exemption as laid down by article 1, (102), Law 205/2017, envisaged ordinarily in the event of hiring young people under 30-years old with an open-ended contract, who have never been employed with an open-ended contract (even by another employer), is extended for 2020 also to subjects under 35.
The relief, with a duration of 36 months, amounts to 50% of the social contributions payable by the employer, with the exclusion of the Inail premiums. You are reminded that for 2019 the extension of the exemption to subjects under the age of 35 was ordered by ’article 1-a, (1-3), Legislative Decree 87/2018 (Dignity Decree), without, however, being implemented, because the necessary operative regulations have not been issued. These provisions have now been abrogated, always by express provision of paragraph 10: the abrogation thus made it necessary, always pursuant to paragraph 10 indicated herein, to update the legal references for the Bonus Sud (article 1, (247), Law 145/2018), that referred to Decree Law 87/2018.
|Article 1, (11)||The Budget Law 2020 extends and modifies the procedure for accessing the reduction of contributions called Bonus eccellenze, which had remained on paper due to the absence of the necessary applicative measures.
First of all, article 1, (714), of Law 145/2018 is abrogated, this provision envisages that the Social security Institute (Inps), with a special memorandum, establishes how to use the exemption laid down in article 1, (706), Law 145/2018, the law establishing the indicated exemption.
Furthermore, paragraph 715 is changed, envisaging that the access to the exemption laid down in paragraph 706 be linked to the procedures, the methods and the controls envisaged for the contribution exemption laid down in article 1, (100–108 and 113–115), Law 205/2017. The Inps acquires the information laid down in paragraph 707, Law 145/2018, regarding the educational qualifications and the marks obtained, electronically from the Miur (Education ministry).
You are reminded that the exemption from contribution payment is acknowledged to the private employers who employ citizens with the following qualifications with an open ended contract:
· master’s degree, obtained in the period between 1st January 2018 and 30th June
2019 with a mark of 110 cum laude and a weighted mean of at least 108/110, by the end of the legal duration of the study course and before their 30th birthday, in State universities or non-State ones which are legally recognised;
· a research doctorate, obtained in the period between 1st January 2018 and 30th June 2019 and before their 34th birthday, in State universities or legally recognised non-State universities.
The incentive consists of exemption from the payment of the welfare contributions by the
employer, with the exclusion of the premiums and contributions owed to Inail (National Institute for Insurance against Accidents), for a maximum 12 months
starting from the date of employment, within the maximum limit of 8,000 euro for each person hired.
|Article 1, (340 – 341)||The allowance laid down in article 1, (125), of Law 190/2014, the so-called Baby bonus, is also acknowledged for each child born or adopted from 1st January 2020 to 31st December 2020 and, with reference to these subjects, it is paid exclusively until their first birthday (originally the amount was fixed, 960 euro, but was payable until the third birthday) or the first year he or she became part of the household following adoption and the relative amount of:
a) 1,920 euro, if the household to which the parent requesting the allowance is in an economic condition corresponding to an Isee value, established in accordance with the regulation laid down in Prime Minister’s Decree 159/2013, not exceeding 7,000 euro per annum;
b) 1,440 euro, if the household to which the parent requesting the allowance is in an economic condition corresponding to an Isee value, exceeding the threshold indicated at letter a) and not exceeding 40,000 euro;
c) 960 euro, if the household to which the parent requesting the allowance is in
an economic condition corresponding to an Isee value, exceeding 40,000 euro;
d) in the event of children after the first one, born or adopted between 1st January 2020 and 31st December
2020, the amount of the allowance laid down in letters a), b) and c) is increased by 20%.
If the resources allocated are exhausted, the annual amount of the allowance and the Isee values will be recalculated.
Obligatory paternity leave
|Article 1, ( 342)||Obligatory leave of the father, connected to the birth of a child, envisaged by article 1, ( 354), of Law 232/2016, is also extended to 2020 and is equal to 7 days.
The obligatory leave for the employed worker father must be taken within 5 months of the birth of the child and the days of leave can even be used not continuously.
Furthermore, the employed father’s possibility to abstain from work for
an extra day, if agreed with the mother and replacing her in relation to the latter’s obligatory maternity leave remains confirmed.
Taxation of mixed use vehicles
|Article 1, (632 – 633)||The taxation of mixed use vehicles whose use is granted to employees has been modified, by replacing ’article 51, (4), letter a), of the Consolidated law on income tax (Tuir), making it fluctuating, progressively, on the basis of the polluting emissions. The previous regulation in force remains applicable for vehicles granted for mixed use with contracts stipulated before 30th June 2020.
For granted vehicles with agreements after 30th June 2020:
· for newly registered motor vehicles and motorcycles and scooters, whose carbon dioxide emission values do not exceed 60 g/km of CO2, granted in mixed use with contracts stipulated starting from 1st July 2020, 25% of the amount corresponding to an agreed mileage of 15,000 km is assumed, calculated on the basis of the cost per kilometre of the year taken from the ACI (Italian Automobile Club) tables, net of any amount withheld from the employee;
· for vehicles with carbon dioxide emission values exceeding 60 g/km, but not 160 g/km, the percentage is raised to 30%;
· if the emission values of the vehicles indicated above should exceed 160 g/km, but not 190 g/km,
the indicated percentage is raised to 40% for 2020 and 50% starting from 2021;
· for vehicles with carbon dioxide emissions exceeding 190 g/km, the indicated percentage is 50% for 2020 and 60% starting from 2021;
|Article 1, ( 677)||The tax exemption for ticket restaurant (so-called luncheon vouchers) is modified by revising article 51, (2), letter c), of the Consolidated Law on income tax (Tuir), aimed at promoting electronic luncheon vouchers in place of the traditional paper-based ones.
In particular, alternative services to provision of meals (luncheon vouchers) are exempt up to a maximum daily amount of 4 euro, increased to 8 euro if they are electronic vouchers. The alternative indemnity for canteen services paid to workers on building sites, on other working structures of a temporary nature or on production units located in areas where there is an absence of canteen structures or services, on the other hand, remain exempt up to an overall daily amount of 5.29 euro.
HANDICAPPED DISCLOSURE STATEMENT
The disclosure statement is a statement that the employers with 15 or more employees making up the basis of calculation must present to the competent provincial service, indicating their own employment situation with respect to the obligations of employing disabled personnel and/or people belonging to the other protected categories, along with jobs and tasks available.
It is to be sent exclusively electronically by 31stJanuary, to communicate the employment situation, referring to 31st December of the previous year, in order to subsequently fulfil the law.
You are reminded that even companies coming within the category 15-35 employees are obliged to present the disclosure statement from when they employ the 15th unit.
Therefore, public and private employers who employ at least 15 people domestically as at 15th December 2019, and those who have modified the employment situation, if the change is such as to modify the obligation or as to affect the calculation of the reserve share, must send the handicapped disclosure statement by 31st January 2020.
The disclosure statement must indicate:
the overall number of employees;
- the number and the names of the workers who can be calculated in the reserve share;
- the jobs and tasks available for disabled workers.
It is worthwhile clarifying that there is a “modification of the employment situation” when the enterprise, by effect of hiring new employees, reaches 15 employees or changes the range (15-35, 35-50, more than 50 employees) within which the previous employment threshold was situated.
It is to be pointed out, therefore, how the statement does not have to be sent every year, but only if there have been changes, with respect to when it was last sent, to the employment situation such as to modify the obligation or to affect the calculation of the reserve share.
Determining the number of disabled subjects to employ is given by the calculation of all the workers employed with a contract of employment.
The following are not calculated: employees with a fixed term contract lasting less than 6 months, disabled workers, members of manufacturing and labour cooperatives, senior managers, workers employed with a staff leasing contract detached with the user (in the event of staff leasing of disabled workers for assignments lasting no less than twelve months, the assigned worker is calculated in the reserve share), workers employed for activities to be carried out abroad for the duration of these activities, subjects involved in socially useful work, outworkers, apprentices.
The office remains at your disposal for any further clarification.
Arianna De Carlo – Senior Payroll Specialist & Labour Consultant