Accessing Super Bonuses and creating bonuses will be more expensive. In fact, the 2024 budget of the Meloni government envisages increasing the withholding tax on bank transfers, which citizens who benefit from aid to companies carrying out renovation works define as “speech”. The withholding tax will have two effects: less liquidity for protesting companies and more revenue for state coffers, estimated at one billion euros a year. Let’s look at the main innovations and how the mechanism works.
Withholding tax on “speaking bank transfers”: how does it work?
A “speaking” transfer is essential to benefit from the tax benefits provided by government bonuses. It is a special item among the options that account holders have at their bank, because it respects certain features, for example, in order to benefit from Superbonuses and building bonuses.
The speaking wire transfer provides decisive information to confirm payment for energy requalification or renovation works so that the Revenue Administration can track the details of the transaction and carry out checks. These transfers are currently subject to a withholding tax of 8% of the total payment by Italian banks and post offices.
Tax on bank transfers for rollover bonuses: How does it work from 2024?
The 2024 budget law foresees an increase in withholding tax for transfers related to construction bonuses. In paragraph 1 of Article 23 of the text of the maneuver, among the “Measures to combat evasion and rationalization of loan compensation procedures” we read: “Without changing the general structure of the system, it is limited to increasing the withholding tax rate from 8% to 11%, thereby increasing the tax system in question.” “to be brought into line with the amount it would normally prescribe, such as in the case of self-employment compensation”.
Therefore, withholding tax on bank transfers for renewal bonuses increases from 8 percent to 11 percent. There is also a date: March 1, 2024. The measure will bring 0.5 billion more money into the state’s coffers in 2024 and around 0.6 billion more in 2025. The problem is that a rate increase will reduce the money reaching construction companies. hence it will have less liquidity.
With the emergence of the drafts, trade unions protested: “With the protest of the National Confederation of Craftsmen and Small and Medium-Sized Enterprises, we had hoped that finally in this budget law the 8% withholding tax on bank transfers would be at least reduced. Even if it is not eliminated, as we have been insisting for years, this will still be a factor in construction and “It is a measure that increases the loans of facility engineering companies to tax authorities,” he said. Now the increase has been confirmed: transfers for house bonuses will cost more.
While tax cuts for employees are one of the most popular measures, there are other details that are certainly overshadowed but no less important. Here they are listed in the special section of Today.it for the 2024 maneuver.
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Source: Today IT
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
