The Budget Law approved by the Council of Ministers also includes resources for the Strait Bridge, tax breaks for working mothers and public sector contracts.
From cutting the Rai license fee to reducing payroll taxes, from tax breaks for working mothers to benefits for companies that don’t relocate. The government launches the budget measure worth almost 28 billion, if we also consider the measures of the legislative decrees, the first step of the tax reform. The bill also includes resources for the Strait Bridge, the renewal of public administration contracts and the tightening of pension advances with the new Quota 104.
The RAI license fee in the bill decreases from 90 to 70 euros per year. ”A quarter of the license fee is no longer paid in the bill”, announced the Minister of Economy, Giancarlo Giorgetti, during the press conference at Palazzo Chigi, at the end of the Council of Ministers which approved the 2024 budget law.
Around ten billion of the budget are intended for the renewal in 2024 of the cut in the tax-contribution wedge (7% for incomes up to 25 thousand euros, 6% for incomes up to 35 thousand euros). The measure affects around 14 million workers which will also maintain the average paycheck benefit of 100 euros per month for next year.
Irpef and no tax area rates
There reform of Irpef rates provides for the merging of the first two bands (0-15 thousand at 23% and 15-28 thousand at 23%) at 23% for all incomes up to 28 thousand euros per year. The measure is financed in budget with 4.3 billion. The simultaneous application of the reduction of the contribution wedge and the new Irpef rate will have the effect of strengthening the paychecks of employees up to 1,298 euros per year (for 27,500 euros gross per year). The decree also raises the no tax area for employees to 8,500 euros.
Fringe tax relief confirmed
Maneuvering tax relief on productivity bonuses confirmed at 5% and the threshold of up to 2 thousand euros of fringe benefits for workers with dependent children, up to 1000 euros for all others (they can also be used for rent and first home mortgage payments).
Less taxes if you hire
They go up tax deductions for new permanent hires at 20%.. The discount is more than 20% for the fixed-term hiring of disadvantaged workers, disabled people, women with at least two minor or unemployed children, young people, workers from the South and former RDCs.
Southern business tax credit
For businesses and to support private investments, a tax credit will be provided for those who purchase capital goods intended for production structures located in the South. 1.8 billion will be allocated in 2024 to which are added the resources for development, new Sabatini and development contracts (300 million).
Families and birth bonus
Resources amounting to 1 billion euros are allocated to support large families and to raise the birth rate. Among the measures, the ‘Dedicated to you’ card confirmed to the extent of 600 million euros for the year 2024 and the allocation of first home mortgages of approximately 380 million euros is integrated. Contribution relief for working mothers for one year if you have two children under the age of 10 for the youngest and permanently for those who have 3 children up to the age of 18 for the youngest.
Global minimum tax
From 1 January 2024, the global minimum tax of 15% is expected to come into force for multinational groups with annual turnover exceeding 750 million euros.
Concessions if the company returns to Italy
At companies and productive activities that return to invest in Italy a 50% reduction in income taxes will be recognized in the tax period in which the transfer occurs and for the following 5 years. To avoid relocations, the company will have to return what it has received, also paying interest, if it decides to transfer the business to another state during the period in which it benefits from the relief and in the following 5 years.
Brain reentry benefits
From 2024 it will be recognized a new facilitated regime for employed or self-employed workers who transfer their tax residence to Italy for a maximum of 5 years. They will be able to benefit from a 50% tax reduction, within a subsidized income limit of 600,000 euros. The benefit will be returned with interest if they do not maintain tax residency for 5 years.
Bridge over the Strait
The maneuver it also ensures the resources necessary for the construction of the Bridge over the Strait 12 billion over a multi-year horizon and with increasing shares.
Pensions, mark 104
Changes for the APE with the raising of the contribution requirement for men to 36 years compared to current legislation and with different requirements for women, and quota 104 with some specifications which take into account the need to valorise those who want to stay in work (such as the so-called Maroni Bonus).
For 2024 the mechanism for indexing pensions to inflation has been remodulated in force last year, which protects the lowest pensions. Furthermore, thanks also to the reform of Irpef rates, pensioners will be able to receive benefits of up to 1,279 euros per year (pension income of around 28 thousand euros).
Renewal of PA contracts
Five billion for the renewals of public administration contracts, in addition to approximately 2.5 billion for medical and healthcare personnel.