Procurement, close to withholding taxes only on contracts above 200 thousand euros

With an amendment by the speakers approved by the Finance Committee of the Chamber, an attempt is made to simplify the procedure for combating tax and social security evasion on withholding taxes in cases of illicit supply of labor

The tightening on withholdings in procurement and subcontracting introduced with the fiscal decree linked to the maneuver is eased. With an amendment by the speakers approved by the Finance Committee of the Chamber, an attempt is made to simplify the procedure for combating tax and social security evasion on withholding taxes in cases of illicit supply of labor. In particular, it is envisaged that the contracting companies, subcontractors entrusted with the construction of the work, will be directly charged. It will therefore no longer be necessary for the client company to advance the funds for the payment of the withholdings of all the workers employed in the contract or subcontract. The client must verify the payment of withholdings by the company to which he entrusted the work.

No obligation for condominiums and farmers
The new procedure for verifying and countering the non-payment of withholding taxes applies to contracts or subcontracts exceeding 200.00 euro per year. In this way, service contracts are excluded or often characterize the life of condominiums such as stair cleaning or gardening. In addition, the companies concerned will be those that resort to the provision of labor. In essence, they carry out the work through the use of machinery and capital goods owned by the client.

How to certify the payment of withholding taxes
It is up to the company that entrusts the realization of the work to find the total amount of the amounts paid by the contractors, subcontractors. The latter must send a copy of the F24s with which they have paid the tax due to the tax authorities within 5 working days after the due date for payment. These must be accompanied, as explained by Raffaele Trano (M5S), who inspired the reformulated and approved amendment, from the analytical list with the data of the workers employed in the previous month in the construction of the works, as well as with the amount of compensation paid.

Excluded companies
No obligation on the attestation of withholding tax for companies in business and in compliance with tax returns in the three years preceding the year to which the work refers (initially there were 5) and from the tax account are payments for each annuity equal to 10% of revenues or fees indicated in the declaration. Or still have no pending with the collection agent for over 50 thousand euros.