See the document  Explanatory charts for companies (PDF file)

What taxes and social contributions are covered?

1. IRC obligations - Main measures:

• PEC postponement (to June 30)
• Extension of delivery of Model 22 (to July 31)
• Extension of the PPC and PAC (to August 31)

1. Delivery of withholding taxes:

• Fractional delivery of IRS withholdings in 3 or 6 months from April

1. Delivery of VAT payments - Main measures:

• Fractional delivery of VAT to the State in 3 or 6 months from April

1. Social Security contributions:

• Deferral of 2/3 of the payment of social contributions of the employer's responsibility from March, April and May 2020 to the 2nd semester of 2020, paid through a 3 or 6 month installment plan

 

Tax Obligations

 

1. Regarding IRC obligations, who can benefit?
   • All companies

 

2. Regarding the delivery of withholding taxes and the delivery of VAT payments, who can benefit?
   • All companies and independent workers with turnover up to (<=) 10M € in 2018
   • All companies and self-employed persons whose activity falls within the sectors closed under the terms of article 7 of decree no. 2-A / 2020
   • All companies and independent workers who started / restarted activity in 2019 (in situations of restarting activity applies when they did not obtain turnover in 2018, otherwise it follows the rule regime)
   • The remaining companies and self-employed workers, provided that a break exceeding 20% ​​of the invoicing (according to the E-invoice system) compared to the average of the 3 months prior to the month of the obligation compared to the same period

 

3. What payments can be split in connection with the delivery of withholding tax at the IRS?

• All IRS withholdings due on 20 / April, 20 / May and 20 / June
• 1st installment is due on the date of fulfillment of the obligation and other
  installments are due on the same date, in the following months
• Withholdings at the source of IRC can also be split under the same conditions

 

4. What payments can be split up when delivering VAT payments?

• All VAT payments:
  • Monthly regime - on 15 / April, 15 / May and 15 / June
  • Quarterly regime - May 20
• 1st installment is due on the date of fulfillment of the obligation and other installments are due on the same date, in the following months

 

5. How should I inform the Tax Authority about the choice of payment method?

For the delivery of withholdings at the IRS source, the communication is made as follows:

• Upon request on the Finance Portal (automatic validation), for companies and independent workers with a VN of up to 10M € in 2018, with activities closed or with start / restart of activity in 2019
• Upon request on the Finance Portal (case-by-case validation), for the rest, subject to submission of certification by ROC or CC of the breach of activity

 

For the delivery of VAT payments the communication is made as follows:

• Upon request on the Finance Portal (automatic validation), for companies and independent workers with a VN of up to 10M € in 2018, with activities closed or with start / restart of activity in 2019
• Upon request on the Finance Portal (case-by-case validation), for the rest, subject to submission of certification by ROC or CC of the breach of activity

 

Deferred payment scheme for social contributions

The Government approved a deferred payment scheme for social contributions due by employers and self-employed workers.

 

1. Who can benefit from this scheme?

Private and social sector employers are entitled to defer payment of contributions with:

• Less than 50 workers;
• A total of workers between 50 and 249, provided that they present a drop of at least 20% of the invoice communicated through the e-invoice in the months of March, April and May 2020, compared to the same period of the previous year or, for who started the activity less than 12 months ago, the average of the elapsed activity period;
• A total of 250 or more workers, provided that it is a private institution of social solidarity or similar, or that the activity of these employers falls within the sectors closed under the terms of article 7 of Decree no. 2-A / 2020 , of March 20, or in the aviation and tourism sectors, and provided that they present a drop of at least 20% of the invoice communicated through the e-invoice in the months of March, April and May 2020, compared to the period the previous year or, for those who started the activity less than 12 months ago, the average of the elapsed activity period.

Self-employed workers can also benefit from the measure.

 

2. How does deferred payment from employers work?

Employer liability contributions, due in March, April and May 2020, can be paid as follows:

• One third of the value of contributions is paid in the month it is due;
• The remaining two-thirds are paid in equal and successive installments:

1. In the months of July, August and September 2020; or
2. From July to December 2020.

Workers' contributions must be paid in the months they are due.

 

3. How does deferred payment work for self-employed workers?

The contributions of self-employed workers, due in April, May and June 2020, can be paid as follows:

• One third of the value of contributions is paid in the month it is due;
• The remaining two-thirds are paid in equal and successive installments:
• In the months of July, August and September 2020; or

2020. From July to December 2020.

 

4. How do you indicate in which months you want to pay?

Employers and independent workers must indicate in the Social Security Direct in July 2020 which of the payment terms they intend to use.

 

5. How are the break billing requirements demonstrated?

The requirements of the installment plan related to billing are demonstrated by the employer during the month of July 2020, together with certification by the company's certified accountant.

 

6. How do you measure the number of workers?

The number of workers referred to in the previous number is determined by reference to the remuneration declaration for February 2020.

 

7. Is the deferred payment of contributions mandatory?

No. Deferred payment of social contributions is optional and does not prevent full payment of contributions due by employers.

 

8. Can you accumulate with other supports?

Yes, this measure is cumulative with other extraordinary measures in the context of the COVID-19 crisis.

 

9. What happens if you do not pay 1/3 of the contribution on time?

If an employer or self-employed person does not pay 1/3 of the value of contributions for any of the months within the deadline, the possibility of accessing this scheme ends.

 

10. What if the employer has already paid all contributions due in March 2020?

For employers that have already paid the full amount of contributions due in March 2020, the deferral of payment of contributions starts in April 2020 and ends in June 2020.

 

11. Is there a requirement for deferral of payment?

Deferral of payment of contributions under the responsibility of the employer and the self-employed is not subject to application. The assignment is unofficial by the Social Security services.

 

12. How can I pay 1/3 of the contribution?

Employers must calculate the amount payable: total amount of contributions calculated plus 1/3 of the value of contributions from employers.

Self-employed workers must use the payment document available from Direct Social Security.