Single and universal allowance

by Arianna De Carlo | May 25, 2021 | Blog, new

Art. 2 of Law no. 46 of April 1, 2021 envisages the institution of the single universal allowance from July 2021, dictating its general principles and referring the definition of the relative regulations to the implementing decrees.

The introduction of the single and universal allowance entails the gradual suppression of the measures indicated in art. 3 of Law no. 46/2021, including:

  • the allowance for family nuclei with at least three minor children;
  • the baby bonus
  • the birth bonus;
  • allowances for the family nucleus (see allowance for the family nucleus).

LDP takes an X-ray picture of the instrument.

 

What is the allowance?

Access to the measure in question is provided for each dependent child with criteria of universality and progressiveness and is subject to the possession, cumulatively, of a series of requirements concerning the profiles of citizenship, residence and stay.

In order to access the measure it is necessary to:

  • be an Italian citizen or a citizen of an EU Member State, or a family member;
  • be holder of the right of residence or the right of permanent residence, or a citizen of a non-EU Member State in possession of an EU long-term residence permit for or a residence permit for work or research purposes, valid for at least one year;
  • be subject to the payment of income tax in Italy;
  • be resident and domiciled, together with dependent children, in Italy for the duration of the benefit;
  • having been or being resident in Italy for at least two years, even if not continuous, or to be the holder of an open-ended or fixed-term employment contract lasting at least two years.

 

Effective date

The benefit starts from the seventh month of pregnancy until the child reaches the age of 21.

 

Some estimates

The amount is variable based on the economic situation of the household:

  • as determined by the ISEE and its components;
  • taking into account the age of dependent children and the possible disincentive effects on the job offer of the second income earner in the household.

The delegated law provides for the amount to be reduced for children who reach the age of majority, who may apply for it directly on condition that they have at least one of the following requirements

  • attendance of a school or vocational training course, or a degree course;
  • carrying out an apprenticeship or limited work activity, with a total income of less than a certain annual amount;
  • registration as an unemployed person looking for work at a job center or employment agency;
  • performance of universal civil service.

The law in question provides for an increase if the allowance is paid to mothers under 21 years of age, as well as an increase, at a rate of no less than 30% and no more than 50%, for each disabled child, respectively, who is a minor or an adult and under 21 years of age; the amount of the increase is graduated according to the classifications of the disability condition. For children subsequent to the second, the amount is increased.

 

Disbursement of the allowance

The benefit is granted in the form of a tax credit or as a monthly payment shared 50/50 between the parents.

In the case of a monthly sum of money, if the household is a holder of citizenship income, the allowance is paid jointly with the latter (with which it is compatible), through the RdC electronic card.

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