Revolution in sight with regards tax deductions and facilitations on payments. Three are the main innovations contained in the 2020 budget law, which however – as always – may be subject to substantial changes during its parliamentary process.
The first concerns the "traceability of the deductions" which according to Article 85 of the maneuver will be granted only "on condition that the charge is supported by bank or postal payment or through other payment systems provided for by Article 23 of the Legislative Decree 9 July 1997 , No. 241 ".
To have the deduction you will have to pay with the card
Translated from the bureaucrat to Italian this means that the 19% deduction on veterinary expenses, school expenses, creches, sports activities, mortgage interest payments, donations etc, it will only be for those who use traceable payment systems, and that is to say: bank transfer, debit, credit and prepaid cards, checks banking and circulars.
Medical expenses excluded
But be careful: paragraph 2 of the article specifies that the provision "does not apply to deductions due in relation to the costs incurred for the purchase of medicines and medical devices, as well as deductions for health services rendered by public facilities or private facilities accredited to the Service national health service ". In short, the medical expenses could be pay in cash without losing the deduction.
The discount on payments for card users
The second change concerns the introduction of "reward measures to promote the use of electronic payment instruments" (the so-called "befana bonus"). Article 31 of the budget law states that "in order to incentivize the use of electronic payment instruments," those who "make purchases regularly" paying with the card "from subjects who carry out activities of selling goods and services of services, are entitled to a cash refund ".
What are the reimbursable expenses? And how much will it be possible to save? For now there are not many details and it is not clear even if the refund will arrive in the form of a deduction or will be returned directly on the account statement. The conditions of implementation of this measure will in fact be explained only in an ad hoc decree of the Mef "to be adopted by 30 April 2020". The funds allocated are three billion euros for the years 2021 and 2022 and according to the M5s the deduction will be equal to 19%. The discount will be applied only in sectors at risk of evasion (there was talk of expenses for small housework, personal care, restaurants, etc.).
The repayment should arrive in the first days of the new year. Do not be too illusory about the amount: the economy minister Gualtieri has stated that it will be in the order of 100 or 200 euros per year. It obviously depends on how much is spent.
Deductions, news coming up for high incomes
On the front of the tax deductions there are important innovations for those who have an income of over 120 thousand euros a year. Article 75 ("Re-modulation of the deductible charges based on income") provides that the 19% deduction on the taxable income can be granted in full only to those with an income of less than 120 thousand euros. Starting from this threshold the deductible amount it decreases with the increase in income up to zero at 240 thousand. There will be no limit for health costs, interest expense on mortgage loans and interest expense on agricultural loans that can be deducted regardless of income.