Last October 16, 2023Irpef has changed his face, The legislator, on that date, actually introduced a series of very important measures, including the draft budget law 2024, Through a legislative decree, the Meloni government has implemented a significant revision of the personal income tax.

This was necessary to comply with the provisions of fiscal delegation and is carried out under the guidance of giancarlo giorgetti, Minister of Economy and Finance. will bring review Gradual reduction in personal income tax and will follow certain well-defined directives, among which is the desire to preserve the principle of progressivism, which is one of the major foundations on which IRPEF is based.

The principle on which this tax will be based through 2024 is very simple: Fair treatment between different types of income, Particular attention is paid to equality between people in employed work and those with pensions. The legislator aims to achieve a very precise objective: to achieve fairness in tax treatment between different social groups.

Over the past few months, IRPEF rates have changed. Changes were introduced in Try to control the cost of living, To try to better understand how IRP rates will change next year, it’s a good idea to review the brackets and percentages valid in 2023:

  • 23% rate: It is applied to the first bracket for income up to 15,000 euros;
    25% rate: It is applied to the second bracket for incomes between 15,001 and 28,000 euros;
  • 35% rate: It is applied to the third bracket for income between 28,001 and 50,000 euros;
  • 43% rate:For income over 50,001 euros, applies to the fourth bracket.

Wanting to summarize as much as possible, the law provides four IRPF brackets and one exemption band – named no tax zone – For taxpayers with income less than 8,174 euros. In other words, individuals earning less than this figure are not required to pay tax. The maximum deduction amount for employees was 1,880.00 euros.

But now let’s see what the new features are.

IRPEF: New rates for 2024

The MLA has made some changes irpay ratesWhich will become from next year:

  • Up to 23% for those with income up to 28,000 euros, All taxpayers earning less than 28,000 euros will be taxed at 23%;
  • 35% for income between 28,001 and 40 euros, Income included in this limit will be taxed at the rate we have just seen;
  • Up to 43% for income over 50,001 euros, Taxation for people above this rate will be 43%.

In addition, some innovations have been introduced regarding the deduction provided for holders of income from employment – ​​in this case pension income is excluded – which has increased from 1,880 to 1,955 euros.

Complementary Treatment

One of the new features introduced for 2024 provides that the payment is made as part of integrative treatment – as predictedArticle 1, Paragraph 1 of Legislative Decree no. 3/202 – Provided to taxpayers with eligible gross income be less than 15,000 euros, However, only one condition is set: the gross tax must, in any case, exceed the amount of the deduction directly provided for by Article 13, paragraph 1, letter a) of the TUIR, i.e. the consolidated law tax on income. , Who reduced by 75 euros,

This innovation, obviously, leads to an increase no tax zonewhich will pass at this point From 8,174 euros to about 8,500 euros, Furthermore, as far as employees are concerned, the rules relating to supplementary treatment have been changed so that they can benefit from the conditions currently in force.

IRPEF: Comparison between 2023 -2024 brackets

If you want to make a comparison between the IRPEF bracket implemented in 2023 and 2024, it is possible to note that an important simplification, The most important concern is the merger of the first two into one for those with incomes below 28,000 euros.

The amendment to personal income tax aimed at 2024 is undoubtedly an important step A tax reform that is more efficient and fair, Reform has a very specific purpose: to promote Progressivity and horizontal equality in the tax systemGoing to combat cost of living and inflation.

New rates: some examples

through the lack of irpay rates The Meloni government essentially intends to support the needs of Taxpayers with income between 15,001 and 28,000 euros, i.e. those in the medium-low category. Like the rest of the population, these citizens will also face an increase due to inflation during 2023. But let’s take a closer look at what the changes mean for Italian taxpayers.

In the event that an individual’s total income is €26,000, applying the rates currently in force, the gross tax to be paid will be as follows:

(15.000 x 23%) + (11.000 x 25%) = 3.450 + 2.750 = 6.200 euros.

Thanks to the provisions related to the new IRP, however, tax will have to be paid be equal to 5,980 euros: The 23% rate is, in fact, calculated on total income, which in this case equals $26,000. Taxpayers will reach the case under consideration To save 220 euros every year,

How gross deductions change

changes are also coming gross deductions, Article 2 of the draft decree provides that, for natural persons Total income more than Rs 50,000Overall the amount of the deductions is 260 euros less than the payable deductions. Reduction in this matter is a matter of concern specific deductible chargesFor which the deduction rate is fixed at 19%.

To be able to calculate this deduction it is necessary to take into account Total Earnings, which must be calculated as the net of income of the real estate unit that is used as a principal residence. This change was necessary to offset a portion of the revenue lost with the reduction in IRPEF rates.

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