There are three “stakes” to be respected for the taxpayer in a flat-rate regime (regime forfettario) that aspires to reduce to 5% (instead of 15%) the substitute tax, and are still those provided for in paragraph 65 of article 1 of law 190/2014 , not modified by the Budget Law 2019. The three requirements for the “discount” are as follows:
1.The tax payer must not have exercised, during the three years preceding the startup, artistic, professional or business activity, also in associated form;
2.The activity now carried out (the start-up) must not constitute, in any way, a mere continuation of other activity previously exercised in the form of dependent or self-employment, excluding compulsory practice for the purposes of the exercise of arts or professions;
3.In case of continuation of activities previously carried out by another person, the amount of the related revenues and remuneration, realized in the tax period preceding that of recognition of the benefit must not exceed the limit of 65 thousand euro.
Some clarifications are found in the documents of practice dedicated by Agenzia delle Entrate to the “regime dei minimi” (circular 17 / E / 2012, 59 / E / 2001 and 1 / E / 2001).
The first limitation does not operate if the taxpayer participated in inactive companies or, in any case, with the opening of the VAT number without any concrete activity.
Among the aspects to be considered in relation to the decision or not to apply the flat-rate regime, the accounting / tax simplifications that are proper to the substitutive regime must be duly considered. These simplifications, in fact, allow a saving of administrative costs that could have a decisive influence on the final choice.
Taxpayers who apply the flat rate system are only obliged to number and keep the purchase invoices and the customs bills and to certify the fees. In particular, there is exemption from electronic invoicing (except in the case of supplies / services to the PA) and from the payment of the tax. However, in certain situations (for example, the provision of services received for which the obligation to apply the rules of Article 7-ter of Presidential Decree 633/1972 becomes operative), the tax payers are owed by VAT with payment obligation on the 16th day of the month following the month in which the transaction was carried out.
In addition, for the lump-sum payments, the non-application of withholding taxes on the payment of remuneration and / or income and the absence of the status of withholding agents is recognized.
In light of the changes introduced by the Law for the 2019 Financial Statements, the obligations that must be put in place by persons using employees, in light of the exemption provided for by the rule establishing the flat-rate scheme (paragraph 69, law 190 / 2014).
For the purposes of income tax, the exemption from registration and keeping of accounting records becomes operative, even if there is an obligation to keep the documents received and issued. Finally, for taxpayers on a flat-rate basis, exemption from IRAP exists.