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Italy Extends Tax Due Dates as Part of COVID-19 Relief Package

Posted on Dec. 1, 2020

Italy’s Council of Ministers has issued a decree extending tax due dates as part of an €8 billion package of measures to support an economy hit hard by the COVID-19 pandemic.

The government said the second installment of advance payments of the corporate tax, personal income tax, and regional tax on productive activities has been extended from November 30 to December 10 for parties carrying out business, professional, and artistic activities. In a November 30 statement, the ministers said the extension will run until April 30, 2021, for companies with 2019 revenues of up to €50 million that experienced a drop in turnover of 33 percent or more in the first six months of 2020 as compared with the same period a year earlier.

For those same qualifying companies, social security contributions, withholding tax payments, and VAT due in December will be suspended for an unspecified period.

The government also said individuals in the tourism, entertainment, and spa sectors will receive one-time payments of €1,000, while workers in the sports sector will get €800.

The decree is the fourth round of relief measures announced by the government to counter the effects of the pandemic. In March the Council of Ministers suspended withholding taxes, VAT, and other tax payments until May 31. The government later extended the due date for the payment of some taxes until June 30. In May the government approved a €55 billion COVID-19 stimulus package granting extensions for tax payments until September 16 and canceling the obligation to pay the regional tax on productive activities for companies with annual sales below €250 million. In August the ministers announced additional tax payment extensions and other measures totaling €25 billion to help residents and businesses.

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