The extension of the partial exemption from the obligation to deposit the advance business tax for night and shift premiums has been postponed

Back
Date:
12 Jan 2015

In the framework of the Recovery Act of 15 May 2014, tax measures were foreseen amongst other things to increase the competitivity of undertakings.

 

As explained in our Newsflash of 8 July 2014, the Tax Code provides for a partial exemption from the obligation to deposit the advance business tax for night and shift premiums (art. 257/5 ITC 1992). This exemption was fixed at 15,60% until 31 December 2014 and it was planned to increase it to 18% as of 1 January 2015.

The legislator has, however, modified the original modification.

From now on, the following percentages must be taken into account:

  • 15,60% until 31 December 2015;
  • 20,40% until 1 January 2016;
  • 22,80% until 1 January 2019.

The exemption from the obligation to deposit is increased by 2,2% for all undertakings with a continuous working regime.

It will be recalled that this exemption will only apply to the extent that actual premiums are paid in the framework of night work or shift that meet the very strict tax conditions.

 

> Action point

The tax authority is at this moment carrying out rigorous inspections. Be well prepared for these inspections by always applying a percentage of 15,60% instead of 18%.