Self-employment tax deductions 2024: how to calculate VAT numbers

Tax deductions for self-employment: how do Irpef deductions work for VAT holders? With the merging of the first and second income brackets in the new 2024 Irpef, is there any news that also concerns innovations in the calculation of these deductions for self-employed workers and professionals? The transition from four to three rates and brackets did not bring anything new in this area.
For self-employed workers, the maximum deductions recognized for income from self-employment remain set at 1,265 euros up to 5,500 euros.
For those with higher incomes, specific calculation rules apply.
IRPEF deductions: interested parties By self-employed workers we mean professionals with and without cash, owners of individual businesses, VAT number holders and individuals who carry out self-employed work, whether it is of a continuous nature or whether it is carried out through occasional services .
Holders of coordinated and continuous project-based collaboration contracts and providers of occasional ancillary work are not considered self-employed workers.
Deductions for income from self-employment are governed by art.
13 of the Consolidated Law on Income Taxes (TUIR) and, as already explained above, allow the taxpayer to reduce the personal income tax (IRPEF) due.
Article 13 of the TUIR therefore provides as follows: 5.
If one or more incomes referred to in articles 50, paragraph 1, letters e), f), g), h) and i) contribute to the formation of the overall income, excluding of those deriving from the periodic allowances indicated in article 10, paragraph 1, letter c), among the deductible expenses, 53, 66 and 67, paragraph 1, letters i) and l), there is a deduction from the gross tax, which cannot be cumulated with those provided for in paragraphs 1, 2, 3 and 4 of this article, equal to: a) 1,265 euros, if the total income does not exceed 5,500 euros; b) 500 euros, increased by the product between 765 euros and the amount corresponding to the ratio between 28,000 euros, decreased by the total income, and 22,500 euros, if the amount of the total income is greater than 5,500 euros but not 28,000 euros; b-bis) 500 euros, if the total income is greater than 28,000 euros but not 50,000 euros.
The deduction is due for the part corresponding to the ratio between the amount of 50,000 euros, less the total income, and the amount of 22,000 euros.
Self-employment tax deductions 2024: what's new in the tax reform The starting point for calculating deductions for self-employment is the new Irpef, which from 1 January 2024 is based on three rates and the same number of rates.
The new personal income tax is based on the following table: IRPEF 2024 INCOME IRPEF RATES 2023 1st bracket up to 28 thousand euros 23% 2nd bracket from 28 to 50 thousand euros 35% 3rd bracket over 50 thousand euros 43% With the tax reform, the 25% rate was cancelled, and action was taken on the first two by merging them into a single one, at 23%.
Self-employment tax deductions 2024: how to calculate VAT numbers.
What changes for VAT numbers? For self-employed workers, nothing changes and the calculation remains the same as it was foreseen last year which involves following the scheme proposed below to calculate the deductions due: INCOME (EURO) AMOUNT OF DEDUCTION (EURO) up to 5,500 1,265 above 5,500 up to 28,000 500+(1,265-500)* (28,000-income)/(28,000-5,500) from 28,000 to 50,000 500*[50,000-income)/(50,000-28,000) over 50,000 0 Furthermore, a further deduction is foreseen tion of 50 euros for self-employed workers who have annual incomes between 11,000 and 17,000 euros.
Type of IRPEF tax deductions is for self-employed.
Like IRPEF itself which is a progressive tax (it increases as income increases), even in the case of IRPEF tax deductions on income from self-employed work we are faced with a progressive nature (this time inversely proportional) since the legislation provides for a deduction equal to 1,265 euros for incomes up to 5,500 euros which is then reduced, being due in a smaller quantity up to a maximum income of 50,000 euros.
In any case, the amount of deductions due always depends on the income actually produced by the taxpayer.
As regards self-employed workers, it must also be remembered that, at least in the most widespread tax regimes (such as the VAT number in the old minimum regime or in the new flat-rate regime) the tax to be paid is calculated on the actual income produced and given by the difference between revenues and costs, based on what is actually declared in the Unico PF form.
When presenting this same model, it will also be necessary to take into account the withholding taxes that have been paid on the invoices issued (in this case we are referring both to taxpayers who carry out occasional collaborations and to holders of VAT numbers under the ordinary regime).
Self-employed IRPEF tax deductions 2024: the incomes for which the deduction is foreseen To better understand the incomes for which the deductions foreseen for self-employment are due, it is necessary to refer to paragraph 1 of the art.
53 of the TUIR in which income from self-employment is expressly defined as "those that derive from the exercise of arts and professions.
By exercise of arts and professions we mean the habitual, even if non-exclusive, exercise of self-employment activities other than those considered in Chapter VI, including the exercise in associated form referred to in letter c) of paragraph 3 of the article 5” To these incomes it is also necessary to add those indicated in paragraph 2 of the art.
53 of the TUIR, including: income assimilated to that of self-employment; profit sharing; income from sports performance subject to a self-employment contract.
IRPEF tax deductions: amounts and example of calculation.
As regards the specific amounts of deductions, reference should be made to paragraph 5 of the art.
13 of the TUIR which also states that the deduction from the gross tax cannot be cumulated with those provided for in the other paragraphs of the same article.
As regards the amounts of the deduction on income from self-employment, the following thresholds must be kept in mind: deduction of 1,265 euros, if the total income does not exceed 5,500 euros; deduction of 1,265 euros, if the total income is greater than 5,500 euros but not 50,000 euros.
In this case the deduction must be calculated according to precise calculations, i.e.: for incomes up to 28,000 euros 500 + 765 x 28,000-income)/(22,500; for incomes above 28,000 euros but within 50,000 euros 500 x 50,000-income)/(22,000 ; above 50,000 euros no deductions.
To these deductions must be added, for workers with an income between 11,000 and 17,000, an additional deduction of 50 euros.
Finally, it is worth remembering that when completing the Single PF Form, it will be necessary to take into account including withholding taxes of 20%, already paid on the issued invoices.
These amounts offset the IRPEF actually due and could also, if higher than the tax to be paid, produce a tax credit which would give rise to an IRPEF refund.
Finally, as regards self-employed workers who produce an income exceeding 50,000 euros, it should be remembered that they are not entitled to any type of deduction.
VAT numbers, is there any news for the flat-rate regime in 2024? After the changes brought about by the 2023 Budget Law on the flat-rate regime, however, nothing changes for 2024 which still provides for the following requirements: the revenue and compensation threshold remains at 85 thousand euros per year; when the limit of 85 thousand euros is exceeded during the year, the flat tax continues to be applied up to a maximum of 100 thousand euros; once the threshold of 100 thousand euros is exceeded, therefore, the exit from the flat rate regime is immediate.
We would also like to remind you that the requirements have changed: the obligation for flat-rate VAT numbers to issue an electronic invoice came into force on 1 January 2024 for everyone, regardless of revenues.
Self-employment and Renzi bonuses: what's new in 2024? The 2024 budget law did not bring changes in the supplementary treatment of 100 euros in the paycheck which remains in full form up to 15 thousand euros.
From 15 to 28 thousand euros is received on the condition that the sum of the deductions for expenses incurred up to 31 December 2023 is greater than the gross tax.
In this case, the bonus cannot exceed 1,200 euros and is paid by calculating the difference between the sum of the deductions and the gross tax.
We remind you that the essential requirement to be entitled to the Irpef bonus is to have an income from employment or similar.
It goes without saying, therefore, that VAT holders with income deriving only from self-employment are not entitled to the 100 euro bonus.