Flat tax, self-employed and employees: who pays more taxes

The data that emerge from the calculations of the Cgia Research Office

With the raising of the flat tax up to 85,000 euros in turnover, the self-employed continue to pay more taxes than employees. Only in the income range between 60 and 65 thousand euros, the VAT numbers that make use of the flat tax pay less. In all other comparisons, i.e. between the 10,000 income up to 55,000 euros, the self-employed always pay much more than employees and workers, with peaks between 3,760 and 3,875 euros a year in the income bracket between 25 and 30 thousand euros, an additional levy that rises to around 4,200 euros with incomes between 15 and 20 thousand euros. If, then, the comparison is made between employees and self-employed workers who do not apply the flat tax, the higher levy for the latter increases dramatically, with peaks, between 60 and 65 thousand euros of income, of over 6 thousand euros per year. This is what emerges from the calculations of the Cgia Research Office.

The situation, therefore, changes sign, the CGIA points out, starting from the income class of 60 thousand euros. In this case, the self-employed with a flat tax will suffer an annual tax levy of 640 euros lower than employees in 2023. If the comparison is made with an income of 65,000, the benefit rises to 1,285 euros. The comparison between these two professional categories stops at the income threshold of 65 thousand euros. If we raise the bar further, the turnover of the self-employed worker, implicitly taken into consideration in this elaboration, would exceed the ceiling of 85,000 euros, a level beyond which the flat tax is no longer applicable.

How many potential self-employed workers (i.e. artisans, traders, freelancers, consultants, micro-entrepreneurs, etc.) are there who, with the turnover threshold raised up to 85 thousand euros, will be able to benefit from the tax advantage guaranteed by the application of the flat tax? From the processing of the statistical data of the 2021 tax returns (tax year 2020), it could be a maximum of 140 thousand. Obviously, the actual beneficiaries of the favorable regime will be fewer, as these VAT numbers, in addition to not exceeding the revenue/fee limit of 85,000 euros, will have to comply with further requirements established by law; including, for example, not having incurred expenses for employee, ancillary or collaboration work exceeding 20 thousand euros.

Furthermore, according to data from the 2021 tax returns (tax year 2020), taxpayers under the flat-rate regime amount to just under 1,728,000. According to the Technical Report attached to the 2023 Budget Law, it is estimated that the expansion of the revenue/fee thresholds to access the flat tax envisaged by the Meloni Government will entail an additional cost for the State coffers of 404 million euros per year.