What are the differences between him Minimum government And Flat -Rait Government? Reading many articles circulating on the web can lead to the risk of confusing them, but in fact we are talking about two completely different tools. First of all, in fact, it is not possible to access since 2016, but they can benefit from it – until the age of 35 – yet the people who joined you when it was in action. On the other hand, the flat rate government is independently accessible to everyone, provided the maximum of 85,000 euros is respected.
But why is it important to talk about the least government today, which is not possible? In addition to understanding the differences discussing with the flat rate system, the 35 -year -old age limit is approaching for many VAT holders who adopted it. And, therefore, now it is to choose how to continue your business from a tax point of view.
How the least government works
Still enforcement for a limited number of taxpayers, minimal tax government is specific to VAT holders who perform activity Self -employment. Was introduced with Add n And changed Beneficial government for Youth Entrepreneurship Through Law decree n. 98/2011. In 2014, with the introduction Law 190/14 Who established the rule of flat rate rate, at least the government has been suppressed, which is implemented only for those who have already joined it.
Therefore, at this time, it can only be used by people who chose it at the beginning of the activity by December 31, 2015. If these requirements are respected, it can continue.
- Revenue and fees should be less than 30,000 euros, while the capital gains in the last three years should not exceed 15,000 euros.
- There should be no obstacle, such as, for example, the transfer of residence abroad.
In any case, the minimum government can be applied for a limited period: for the first five years of activity or beyond the aforementioned period, unless the business or self -employed worker is 35 years old.
Through this special device, business or self -employment income comes:
- Default through analytical methods;
- It is taxed by applying an alternative tax of 5 %.
Differences with a flat rate regime
Considering that it is not possible to access the government at least since 2016, it will be believed that there are many taxpayers in those days who have to change the government for the age of 35. At this point it is important to understand what is the difference with the flat rate government. Let’s briefly see what is the first difference before:
the l Minimum government Provides:
- Annual business limit 30,000 euros;
- That the cost of income for capital goods can be deducted by a maximum of 15,000 euros every three years.
- It is not possible for a subordinate, paracetobrinate or independent colleagues.
- The European Union cannot be sold out.
- Any costs related to the activity are identified on the documents related to the costs that are related to the cost. Cost – Appropriate documents – work to reduce the business to determine taxable income.
- There are no partnership facilities.
The main features of Flat -Rait Government The following are:
- The annual trading range is equal to 85,000 euros.
- There is no limit to the purchase for capital goods.
- Unless their total annual compensation exceeds 20,000 euros, it is possible for peers.
- Sale or export can be sold worldwide without any limit.
- Activity costs are determined at a flat rate, which is based on profitability, which changes according to reference code reference – in other words, costs can be downloaded, regardless of whether they are raised.
- With regard to the partnership, there is a shortage of 35 % of them, which must pay for the management of traders and craftsmen.
The focal point is that it is related to TaxWhich should be managed as:
- For the minimum government, a 5 % alternative tax is applied for the government’s application period. There is no difference between the interested parties.
- The flat rate regime is a 5 % alternative tax for the first five years of activity. In all other cases the rate is 15 % (which should be transferred from one government to another, it can be imported that it can benefit from a low rate, as it will not be a new activity).
Flat -Rait is better than moving toward the government
It is not possible to provide an unprecedented response that is valuable to all taxpayers, as many personal factors need to be considered.
Of course, after reaching 35 years, when any step is necessary, it will be more appropriate to see if the normal or flat rate is easy or not, but here too, everything is subject to the characteristics of the activity that is happening and the costs that are essentially raised.
Are different Variable Which should be considered before the passage. It is important to pay attention here.
- Alternative tax approval that passes through a 5 % (minimum regime) 15 % (Flat -Rett government).
- The difference between taxable income tax taxes and deductions can no longer be determined, but profitable is an easy application.
- Likely to conduct operations abroad;
- The effect of social protection, especially for craftsmen and traders, can exploit the reduction of partnerships.
How should be passed
It is possible to go to a flat regime from minimal government at every beginning of the year Final behavior. However, before performing any kind of operation, it is appropriate that you interface with your Financial adviser.
