Regime forfettario: What are the requirements?
The first rule
As you may know, Regime Forfettario (flat-rate regime) is a favourable tax regime for those who are just starting their self-employed careers and who earn less the €65.000. The advantages are several, starting from the favourable taxation rate to low bureaucracy and no bookkeeping.
Professionals sometimes don’t know that you not only need to meet the requirements when you set up your VAT account, but you need to maintain them to stay in the regime.
→ It is therefore fundamental to annually check your status.
In this article you will see what are the specific requirements to maintain your Regime Forfettario in 2022.
More about the income treshold
Individuals who earned no more than €65,000 in 2021 (adjusted per year*) may remain in the flat-rate scheme in 2022
→ Adjusted per year means that if the Partita Iva has been opened for less than 365 days in 2021, the limit for that year is lower. For example, for a Partita Iva opened on the 15th of March (i.e. opened in 2021 for 292 days), this limit would be €52,000 (65,000 X 292 / 365)
A frequent doubt concerns which incomes are calculated within this threshold. Are, for example, incomes derivating from pensions, rents, employment etc. included?
The answer is NO. Only what you invoiced via your Partita IVA is taken into account.
However, regarding employment, please check point 4 of the list below.
Additionally, you will not be able to remain in the flat-rate scheme if:
- You participate in partnerships, associations or family businesses
- You directly or indirectly control limited liability companies or joint ventures that engage in economic activities related (directly or indirectly) to those you carry out individually
- In the course of 2021 you issued invoices to employers (or entities related to them) with whom: 1) there are ongoing employment relationships, or 2) there were employment relationships in 2019 and 2020. This last cause of impediment does not apply to people who have opened a VAT number after having completed a mandatory period of practice for the exercise of their professions.
- In 2021, you received income from employment and/or assimilated income (e.g. pensions) exceeding €30,000. This threshold is irrelevant if the employment relationship ended in 2021.
- In 2021, you incurred expenses for employees or assimilated workers for an amount exceeding €20,000
What to do before 2022?
- Check if your 2021 invoices exceed the €65,000 threshold
- Check whether you meet one or more of the above condition
If you do
Contact your tax advisor for all the necessary considerations and evaluations on a possible regime change
If you don’t
There’s no need to notify anything to your accountant and you can keep Regime Forfettario in 2022 😉
For further information, please contact us:
Expat Regime Forfettario IVA / Expat Regime Forfettario IVA