Withholding tax, here's for which commissions it becomes mandatory

Starting from 1 April 2024, there is an obligation to apply withholding tax on commissions paid to insurance brokers and agents.
The innovation, introduced by the 2024 Budget Law, was implemented by the Revenue Agency which, with circular 7/E of 21 April 2024, provides clarifications and instructions in this regard.
Article 1, paragraph 89 of the 2024 Budget Law has made significant changes to paragraph 5 of article 25/bis of Presidential Decree no.
600 of 1973.
In fact, the part of paragraph 5 which refers to the exemption from application of withholding tax on commissions paid to insurance agents and brokers.
Mandatory withholding tax The amendment therefore provides that the withholding tax is applied to commissions received from: insurance agents for services provided directly to insurance companies; mediators for relationships with insurance companies and with general agents of insurance companies.
In the circular, the Revenue Agency also specifies that all the changes come into force, without prejudice to the provisions of the Ministry of Finance circular 24 of 1983 regarding the indications.
The Agency, again in the document, considers all the indications contained to be outdated in resolution 7 of 2013, considering that the commissions received by intermediaries registered in the sections of the Single Register of Intermediaries are also subject to the withholding obligation: D (banks, investment firms, financial intermediaries pursuant to art.
106 of the Consolidated Banking Act, payment institutions pursuant to art.
114 septies of the Consolidated Law on Banking and the Italian Post Office – Bancoposta Services Division); AND (those employed in distribution activities outside the premises of the intermediary, registered in section A, B, D, F, or in the attached list, for which they operate, the ancillary insurance intermediaries who operate on behalf of another intermediary pursuant to article 109-bis, paragraph 5, of the Code, as well as the employees of the intermediaries registered in section E who operate outside the premises of the latter); F (ancillary insurance intermediaries who, pursuant to article 109-bis, paragraph 1 of the Code, operate on behalf of one or more insurance companies).
When does the change start? Based on the provisions of the 2024 Budget Law, the new provision comes into force from 1 April 2024.
The withholding tax, therefore, must be applied only on payments made starting from this date.
If, however, the agent or broker withholds the amount directly from the sums collected, they are required to remit these sums to the clients who will pay the withholding by the 16th of the following month.