Good news for Forfettario

Good news in the current Finance Act (legge finanziaria) for those on the Forfettario scheme. This is the simplified scheme for small businesses which offers a discounted flat rate of tax, which historically has been 15%, or 5% for genuine start-ups. One of the criteria for qualifying for the scheme is that the business has a limited turnover: to date, the limit has depended on the type of business. Businesses classed as professional  –  English teaching, say or website design – would have a turnover limit of €30k, while an activity offering accommodation would be restricted to a turnover of no more than €50k. Unnecessarily complicated, we all thought, and for once the powers that be are in agreement.

As of next year, the proposal is that the limit of turnover be raised to €65000 for all activities. For those already on the scheme, it is not yet clear whether the new turnover limit will also apply to 2018 earnings: we await clarification from the Agenzia. If so, it could be a busy couple of months in the run up to Christmas!