Easier Tax Refunds with New Regulations

Changes to Tax Refunds Under Legislative Decree 110 of 2024

Tax refunds are undergoing significant changes due to the new regulations introduced in Legislative Decree 110 of 2024.
These changes aim to streamline the process, allowing taxpayers to obtain their refunds more swiftly.

The decree intends to simplify and enhance the efficiency of the tax collection system.
It introduces automatic discharge provisions, important payment extensions for individuals facing economic hardships, and modifies the framework governing tax refunds.

Often, tax laws create credits which can either be refunded or used to offset other accrued debts.
Article 16 of Legislative Decree 110 is designed to revise Article 28 of Presidential Decree 602 of 1973, fundamentally altering the landscape of tax refunds.

Key Updates on Tax Refunds in Case of Tax Debts

The modifications in Article 16 significantly impact the operations surrounding tax credits and refunds.
Starting from August 8, 2024, if a taxpayer requests a tax refund exceeding 500 euros, including interest, the Revenue Agency will check if the individual has outstanding payment obligations from multiple payment notices.

If the verification confirms the debts, a digital notification will be sent to the collection agent responsible for the account detailing the available amounts.
Following the receipt of the notification, the collection agent will provide the taxpayer with a compensation offer, suspending recovery actions automatically.

The taxpayer has sixty days to accept this offer.
If accepted, the funds will be allocated as per the total owed under the registered debt.
Should the taxpayer decline or fail to respond on time, recovery actions will resume, and the collection agent will inform the Revenue Agency of the non-compliance.

The funds for refunds will remain with the collection agent until December 31 of the following year, allowing time for recovery action if necessary.
The most significant change from previous regulations is that now, the issuance of a tax bill alone can halt refund processes, where previously, a more advanced debt status was required.
Hence, even the existence of a single tax bill is sufficient to freeze due refunds.

For more insights on tax relieve and compensation updates, visit this link.