The "regime forfettario" is a simplified tax regime for individuals engaged in business, art, or professional activities. It was introduced by Law 190/2014 (the 2015 Stability Law) and has since been modified and updated. Its primary goal is to simplify tax management for small businesses and freelancers, reducing bureaucratic burdens and encouraging the formalization of informal economic activities.
Key Features of the "Forfettario" Regime
Who is eligible The "forfettario" regime can be adopted by individuals carrying out a business, art, or professional activity, provided they meet certain requirements. The main ones are:
Annual turnover: The limit for revenue or fees must not exceed €85,000 for professionals (or service-based businesses) and €100,000 for businesses that sell goods (e.g., retail).
Personnel and collaborator expenses: Costs for employees or self-employed collaborators must not exceed €20,000 gross per year.
Other limitations: You must not be in specific fiscal situations (such as being enrolled in other tax categories that exclude the "forfettario" regime).
Simplified Tax Treatment Taxpayers who adopt this regime are not subject to VAT (Value Added Tax). They are not required to charge or pay VAT on the invoices they issue. Additionally, they are exempt from filing an annual VAT return or periodic VAT settlements.
Substitute Tax: Instead of regular direct taxes (IRPEF, IRES, IRAP), those in the "forfettario" regime pay a substitute tax ranging from 5% to 15% of their revenue or fees. The rate is reduced to 5% for new businesses (for the first 5 years of activity), while the standard rate is 15%.
Determining Taxable Income Taxable income in the "forfettario" regime is determined by applying a profitability percentage to the revenue or fees earned. This percentage varies based on the type of activity (e.g., professionals, merchants, artisans, etc.). This simplified system eliminates the need for detailed accounting of expenses.
Profitability Percentage: The profitability percentage is set based on the business category. For example, for professionals, it can be 78%, while for commercial activities, it may range from 40% to 60%.
Ad esempio:
Example: A professional with revenues of €50,000 and a profitability percentage of 78% will have a taxable income of €39,000 (€50,000 * 78%). The substitute tax will be applied to this amount at a rate of 15% (or 5% for new businesses).
Accounting and Reporting Obligations The "forfettario" regime is characterized by minimal accounting obligations. Taxpayers are only required to:
Maintain a register of revenues (or fees) and invoices issued.
File the annual income tax return (modello Redditi PF), without needing to file a VAT return, periodic VAT settlements, or other complex reports.
They are not obligated to keep ordinary or simplified accounting records or an annual balance sheet, which results in significant savings in terms of cost and time.
Social Security Contributions Those in the "forfettario" regime are still required to pay social security contributions to the INPS or other professional pension funds (e.g., for lawyers, doctors, engineers, etc.), but the income used to calculate these contributions is the one determined after the substitute tax is applied.
Exclusions from the "Forfettario" Regime Some individuals cannot access the "forfettario" regime, including:
Taxpayers who are partners in a partnership (società di persone) or a limited liability company (SRL), if the company's revenue or fees exceed the specified limits.
Employees with income from employment or a pension exceeding €30,000 per year.
Individuals with foreign income above certain thresholds.
Individuals who have transferred their business to legal entities or hold shares in capital companies.
Advantages of the "Forfettario" Regime
Simplicity: It eliminates many tax and accounting obligations (e.g., VAT returns, VAT settlements, invoice registration, etc.).
Reduced Tax Burden: The substitute tax rate is generally lower than the one applied under the ordinary IRPEF tax regime, and the tax is calculated only on revenue, not on actual expenses incurred.
Simplified Access to Funding and Grants: Even with simplified taxable income, taxpayers can still benefit from some incentives, such as tax credits and grants for new entrepreneurs.
Limitations and Disadvantages
Revenue Limit: If revenues or fees exceed the established limits (€85,000 or €100,000), the taxpayer loses the right to use the "forfettario" regime and must switch to the ordinary one.
Unsuitable for Businesses with High Expenses: The "forfettario" regime is advantageous for those with modest revenues and low expenses. If, on the other hand, a business has high costs for purchasing goods and services, the ordinary regime may be more beneficial, as it allows for the deduction of actual costs.
Conclusion
The "forfettario" regime represents a simple and advantageous solution for small businesses and freelancers with limited revenue, enabling them to reduce bureaucratic burdens and get a more favorable tax treatment. However, it is important for the operator to pay attention to the access requirements, revenue limits, and the specific needs of their activity to determine if the "forfettario" regime is the best solution for them.