Covid contributions for local public transport services without withholding tax

Covid contributions for local public transport services without withholding tax
Covid contributions for local public transport services without withholding tax
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With the answer to question n. 156 of 24 January 2023, the Revenue Agency illustrated the tax treatment of economic contributions disbursed as a refreshment lost revenue in carrying out the services public transport local following the emergency from Covid-99.

In relation to the tax regime applicable to contributions paid following the Covid emergency, art. 10BIS of the Ristori decree provides that contributions and allowances of any kind paid exceptionally following the Covid emergency and other than those existing before the same emergency, paid by anyone and regardless of the methods of use and accounting, due to the operators business, art or profession, as well as self-employed workers, do not contribute to the formation of taxable income for the purposes of income taxes and the value of production for the purposes of IRAP and are not relevant for the purposes of the relationship referred to in articles 61 and 109, paragraph 5, TUIR.

With this provision, the legislator recognized ai contributions of any kind disbursed, exceptionally following the Covid19 emergency, “by anyone” And “independently from the methods of use”, to subjects carrying out business, art or profession activities, as well as to self-employed workers, the non-competition with taxation in consideration of the purpose of the economic aid to counteract the negative effects resulting from the emergency.

Furthermore, in compliance with the spirit of the legislator, the exemption regime it is recognized on the assumption that such economic support is strictly connected to the pandemic emergency and, as expressly required by art. 10BISare different from those existing before the same emergency.

Considering that the art. 200 of the relaunch decree (n. 34/2020) provided for the establishment of the fund in order to support the public transport sector local and regional level of passengers subject to a public service obligation following the negative effects deriving from the Covid emergency and where these contributions have been paid to compensate for the lost tariff revenues resulting from this emergency, art. 10BIS of the Ristori decree and, therefore, the same they are not relevant for income tax purposes and, therefore, not subject to withholding tax.

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The article is in Italian

Tags: Covid contributions local public transport services withholding tax

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