Article 25 of Law Decree 19/5/2020 no. 34 (“Relaunch” Decree) provides for the “Non-refundable contribution” to those subjects carrying out business and self-employment activities, holders of VAT numbers, including companies carrying out agricultural or commercial activities, even if carried out in the form of a cooperative enterprise, with turnover in the last tax period of less than 5 million EUR.
It is not up toin any case, to the subjects:
- whose activity has ceased on the date of submission of the application,
- to public bodies,
- to the financial intermediaries indicated in Article 162-bis of the TUIR
- for taxpayers who are entitled to receive the indemnities provided for in article 27 (Indemnity for professionals and workers with coordinated and continuous collaboration relationship),
- taxpayers who are entitled to receive the allowances provided for in article 38 (Entertainment workers allowance)
- for employees
- to professionals registered with private-law institutions for compulsory social security.
The non-refundable contribution is due on condition that the amount of the turnover and the fees for the month of April 2020 is less than two thirds of the amount of the turnover and the fees for the month of April 2019. The aforementioned contribution is also due in the absence of such requirements to the subjects who started the activity from 1 January 2019 as well as to the subjects who, starting from the onset of the disaster event, have their tax domicile or operational headquarters in the territory of municipalities affected by the aforementioned events whose states of emergency were still in place on the date of the Covid-19 state of emergency declaration.
Amount of the contribution
The amount of the contribution is determined as a percentage of the difference found between the amount of turnover and fees for April 2020 and the amount of turnover and fees for April 2019 as follows: 20% for subjects with revenues or fees not exceeding four hundred thousand euros in the last tax period; 15% per cent for subjects with revenues or fees of more than four hundred thousand euros and up to one million euros in the last tax period; 10% for subjects with revenues or fees of over one million euros and up to five million euros in the last tax period.
The amount of the non-refundable grant is recognized, however, for an amount not less than one thousand euros for individuals is to two thousand euros for subjects other than natural persons.
The contribution not will contribute to the formation of the tax base of income taxes and will not contribute to the formation of the value of net production.
Let’s take a practical example:
Suppose we consider a company that produced revenues of less than 400,000 in 2019 and had a turnover of 40,000 euros in April 2019 and zero in April 2020. According to these parameters, the company will be entitled to support of 20 % calculated on the difference between the two tax periods therefore equal to 40.0000. The non-refundable contribution due to the company will be equal to 8,000 euros.
Let’s take another example: Suppose we consider an SNC that produced revenues of less than 400,000 in 2019 and had a turnover of 10,000 euros in April 2019 and 6,000 in April 2020. The turnover decreased by 40% so the contribution will be due (therefore a reduction of over a third). Calculating the 20% support on the difference between the two tax periods (equal to 4,000 euros) we have an amount of 800 euros. The SNC will therefore receive the minimum amount of 2,000 euros.
How to request it
In order to obtain the non-refundable contribution, the interested parties submit, also through an intermediary, within sixty days from the start of the specific electronic procedure, an application to the Revenue Agency with the indication of the existence of the requirements.
The procedures for carrying out the application, its information content, the terms for submitting the application will be defined by provision of the director of the revenue agency, so today it is still not possible to request it. We will update you when the door is opened.
Non-refundable contribution Provision
The non-refundable contribution is paid by the Revenue Agency by direct accreditation to a bank or postal current account in the name of the beneficiary.
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