Withholding tax will become mandatory from April 1: these are the cases in which it must be issued

Withholding tax becomes mandatory in many circumstances. Here are the cases in which you are required to issue it.

From April 1 they will be there Profound financial changes in ItalyNew bonuses, changes in amounts and even unexpected news such as the introduction of withholding tax which becomes mandatory in many cases.

The 2024 Budget Law created new rules that were implemented and validated by the Revenue Authority and which provided important details and clarifications for citizens. All those who were previously exempt from payment Today they are instead asked to move forward.

Mandatory withholding tax: cases in which it must be issued

Withholding tax is A different system of tax collection that effectively provides for the payment of a certain amount if it is not paid Direct but blocked. For example, if a withholding agent withholds an amount of compensation and then pays it to the state as tax. In Italy, it has been used for a long time to generate income from self-employment, employees and capital. This is set as usual at 20% of the taxable amount and in some cases on commission invoices as well Up to 50% of the taxable amount. All payments made this way must then be entered on Form 770 to track payments due.

Hence, withholding tax becomes mandatory from April 1 It will be applied to commissions for insurance agents, brokers, and relationship brokers with companies and insurance entities Anyone may fall into these categories. With the entry into force of this policy we start immediately, so from April 1st it will be paid. Therefore what changes is not the way the same thing is done or the percentages involved in the calculations but the situations in which it is true and should be applied.

Regardless of the payment due date. Commissions will now be paid this way to insurance agents and brokers The 23% rate will be applied in addition to the cash standard (which remains the same). Therefore, it reaches 50% of the commission amount in general, and 20% of the commissions if the recipient benefits from the work of others. All indicators for understanding the numbers and fees are officially reported in Clarification of Revenue Agency Circular No. 7/E dated 21 March 2024.

It's definitely around Radical and unexpected change For many because it will involve a greater cost but is still a very important change to the system. Thus, the exemption applied to commissions received by insurance companies and brokers who did not have to pay these figures is eliminated. It is also made clear that, with equal treatment, everyone is included Brokers registered in sections (d), (e) and (f) of the Unified Register Intermediaries for related services.