Key Tax Deadlines and Consequences

Today, on July 1st, it’s the final day to pay Irpef, Ires, and Irap taxes, whether in a lump sum or through instalments.
It’s important to note that this date is the deadline for tax payment even for those who file the 730 form without a substitute withholding agent resulting in a tax debt.
The payment of the first instalment 2024 and the final payment 2023 must be settled by June 30th every year.
As this deadline falls on a Sunday this year, the final deadline for tax payment has been extended to July 1, 2024.

Deadline Extension and Late Payment Interests

Taxes can still be paid by July 31st, which is thirty days beyond the deadline, without incurring penalties, but with an increase of 0.4% for interests.

Other Deadlines on July 1st

Alongside income taxes, the deadline for the flat-rate tax on rentals is also on July 1st.
This deadline applies to the final payment for 2023 and the first instalment for 2024.

Both tax payments, including the flat-rate on rentals, must be processed using the F24 form.
For individuals without a VAT number, F24 payments can also be made at banks or post offices, provided that tax credits are not used for offsetting.

Deadlines for Ivie (taxpayers residing in Italy with properties abroad) and Ivafe (taxpayers residing in Italy with financial activities abroad) payments are also due.

Consequences of Late Tax Payments

While it’s possible to pay taxes with a 0.4% increase until July 31st, what happens if payments are made after this date? Delays and omissions can be rectified through voluntary compliance, allowing for a lower penalty compared to what the Revenue Agency would impose.

Voluntary compliance entails paying a reduced penalty even if it’s late, thus avoiding standard sanctions.

Penalties under voluntary compliance vary based on the delay:
– Sprint compliance within 14 days incurs a daily 0.1% increase;
– Short compliance within 30 days entails a 1.5% increase;
– Intermediate compliance within 90 days requires a 1.67% penalty;
– Long compliance within a year results in a 3.75% increase;
– Biennial compliance leads to a 5% increase in penalties.

Furthermore, the penalty also includes additional interest at the legal rate.

For those failing to pay taxes, it constitutes a failure to pay, and if prompted by the Revenue Agency (without voluntary compliance), the penalties are severe, usually amounting to 30% of the evaded tax.