Tax Payments Spread Over 12 Months: What Are the New Deadlines?

Monthly Tax Payments Revolution for Self-Employed Individuals

While salaried employees are accustomed to monthly tax payments, this has been a new development for self-employed individuals.
Changes in fiscal deadlines mean that in 2024, self-employed workers will have the opportunity to pay taxes every month without the burden of a large balance due in June and the advance payment in November.

The Adempimenti decree has introduced several simplifications for tax compliance for self-employed workers, with guidelines issued by the Revenue Agency, the latest of which was published on May 2, 2024.

All workers with or without a VAT number will now be able to spread the payment of the balance and the first installment over seven months, as opposed to the previous six-month timeline.

Extended Deadline for Tax Payments

This new measure complements the option to postpone and spread the second installment over five months, introduced as a temporary measure for 2024.
The Government’s current commitment is to make the extension of the second installment a permanent feature.
This will allow self-employed workers to spread their tax payments over twelve months, similar to what employees and pensioners already do.

Coming Soon: Monthly Tax Payments for Self-Employed Workers

The architect of this reform, Alberto Gusmeroli, confidently anticipates future changes, stating, “We plan to implement a decree in the next three months.
This operation will not incur any costs for the State and will provide greater liquidity to professionals and businesses, who will henceforth deal with a fairer tax system.”

Restructuring the Tax System

This adjustment signifies a crucial step towards simplifying the tax system for contributors who previously did not have the option of regular payments.
Efforts are also underway to allow the deferral of social security contributions due with the second installment, presently payable in a single sum in November each year.

2024 New Schedule for Balance and First Installment Payments

The upcoming tax year will witness a new schedule for payments, granting additional flexibility.
The new deadlines for the balance and first installment are as follows:

• First installment by July 1, 2024 (pushed to July 16 due to June 30 being a holiday)
• Second installment by July 16, 2024
• Third installment by August 20, 2024
• Fourth installment by September 16, 2024
• Fifth installment by October 16, 2024
• Sixth installment by November 18, 2024 (moved to the next working day due to November 16 falling on a Saturday)
• Seventh and final installment by December 16, 2024

Revolutionizing Tax Payments for Self-Employed Professionals

The shift from a quarterly to a monthly payment schedule marks a significant milestone in tax compliance for self-employed individuals.
The initiative to extend this methodology to all VAT entities, if formalized, could benefit up to 5 million taxpayers, promoting fairer and more manageable tax obligations.

Gusmeroli envisions making this mechanism permanent, including pensioners and employees with additional income sources.
This transition has the potential to eliminate the need for withholding tax, rationalizing the tax process and reducing administrative burdens.

This evolution represents a cost-neutral transformation within the realm of VAT entities, ensuring consistent tax revenue despite deferred payments.