Understanding legislative impacts in Italy during COVID-19

April 8, 2020

Among the many business impacts brought on by the COVID-19 pandemic and resulting economic unrest are a slew of legislative changes and recommendations. Here are some important updates to know about if you have employees, and thus payroll, in Italy.

Extensions for compliance filings

Several compliance filing deadlines have been extended to June 30, including:

  • The intrastate tax for February, March and April
  • VAT submission for 2020 fiscal year
  • The Esterometro for Q1

In addition, the Italian Order has extended the approval deadline for financial statements from 120 days to 180 days following fiscal year-end. 

Extensions for tax payment deadlines

Several payments falling between March 8 and March 31 have been suspended, including:

  • Social security contributions
  • Withholding taxes
  • VAT submission

Suspension of these payments applies to certain categories of businesses, companies and self-employed individuals operating in the Italian territory, with less than 2 million euros in revenues or fees at fiscal year-end (December 31, 2019).

These businesses can also postpone the payment of withholding taxes and social security contributions in April. All suspended payments are due by May 31.

Special considerations or recommendations—as an employer or for employees—to keep in mind

Employers who suspend or reduce work activity due to the COVID-19 emergency can apply for the ordinary redundancy fund for a maximum of nine weeks.

For parents, both mothers and fathers have been granted a leave period for a maximum of 15 days, starting March 5 throughout the suspension period of educational programs, schools and childcare services.

In addition, seasonal employees in the tourism and thermal facilities sector are entitled to an allowance of 600 euros in March. An una tantum allowance of 600 euros will also be provided for self-employed individuals.

Programs or initiatives to help offset financial impacts

Special provisions have been issued to provide relief for businesses and individuals affected by the crisis. Here are several examples of different programs or initiatives that have been announced:

  • Shops and stores will be granted a 60% tax credit on building rent (if certain conditions are met) 
  • Measures will be taken to provide a guarantee for loans up to 5 million euros for investments and restructuring of debt situations (if certain conditions are met)
  • The deadline for actions taken to postpone civil, criminal and administrative hearings has been extended until April 15
  • A 50% tax credit will be granted for workplace sanitation expenses up to 20,000 euros

Although this information is correct and up to date as of this publishing, changes are happening frequently. Our local market teams and in-country experts are keeping up with all regulatory amendments, and we’re available to assist you and your organization as you work through payroll and HR challenges in Italy. Contact us today.

You can also find more information for payroll, HR and workforce impacts in our COVID-19 Resource Center, which we’re updating frequently.

 

The information provided on or through this website is for informational purposes only and does not constitute legal advice. Safeguard Global expressly disclaims any liability with respect to warranty or representation concerning the information contained herein, including the lost essence, interpretation, accuracy and/or completeness of the information in transit and language translation.

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