In the text of Budget Law 2025, Approved in the Chamber on December 20 and now awaiting the final green light from the Senate, several measures are not envisaged: the extension of the flat tax to 100 thousand euros, new cuts in the personal income tax and neither the tax to terminate. Bill despite the pressure of the majority. Focused on important tax news. Cuts and targeted interventionssuch as new rules for deductions, anti-theft measures, such as traceability obligations for deductible expenses, and confirmation of the structure of Irpef rates.
No reduction in taxes.
Of the 28 billion proposed by the 2025 budget law, a large portion will be allocated to confirm tax and contribution wage reductions, as well as maintain the Irpef structure with three rates and related brackets. An idea of government that has not changed significantly during the parliamentary process.
However, there is no room for long waits, for example Irpef kit. Budget of Restraint Agreement It turned out to be two years old disappointing, With only $1.6 billion in revenue for the 2024-2025 biennium, rate cuts are unlikely to benefit the middle class, at least for now. To reduce the second Irpef rate from 35% to 33% and increase the taxable income bracket to 60 thousand euros, 2.5 billion euros would be needed, a figure that the tax treaty is unable to meet. is Consequently, the income tax reform plan has been postponed to a later date.
The 2025 budget law has now been defined and considering that the approval in the Senate will be only a formality, the Irpef for 2025 will remain unchanged from the one established last year.
No extension of flat rate system.
Possibility of extension of flat rate system up to 100 million euros, A move that was initially envisioned by the government, especially by Economy Minister Giancarlo Giorgetti, has always been a particularly positive outcome of the two-year prevention agreement. But between that and the failure of a deal with the tax authorities, the plan to extend the flat tax to VAT numbers collapsed.
From 1 January 2025, it will be possible to opt for the flat rate system if the income from employment or pension does not exceed 35 thousand euros, compared to the previous 30 thousand euros established by 31 December 2024. More like a compromise than a genuine innovation with significant implications for preferential tax access rules.
Even with pension, everything is at a standstill.
However, broken promises are not the only concern of the tax authorities. On the pension front too, some of the measures announced during the preparation of the budget have failed, starting with an increase in the lowest allowances. Pensioners will have to settle for a marginal increase: Less than 2 euros per month, That rises to 8 euros for social pension recipients and people over 70 years of age.
Additionally, the government’s plan lacks key interventions for youth. The only notable provision is the possibility of paying additional contributions for pension purposes for new employees starting from 1 January 2025. However, a novelty that asks young people to present themselves at the end of their careers as they enter the world of work.
