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IRAP 2020 advance payment

date: 27.10.2020
Area: Tax

With Circular Letter no. 27/E/2020, published on 19 October, the Tax Office returned to the topic of the Irap advance payment, focusing specifically on two aspects:

  • the calculation of IRAP to be paid for the balance of the tax period following the current one as at 31.12.2019 (2020 for persons with a financial year coinciding with the calendar year);
  • the possibility to offset or ask for reimbursement of any Irap credit resulting in case of over payment of the first down payment in relation to the balance due.

On the first point, the Tax Office clarifies that, regardless of the method of determination chosen to calculate the second advance payment, the first “notional” advance payment may never exceed 40% (i.e. 50% for Isa entities) of the total amount due for IRAP for the 2020 tax period, provided that the latter does not exceed what is actually payable.

With regards to the second point, the problem of offsetting any IRAP credit emerging if the first down payment exceeds the balance due does not arise either: in fact, given the above, the first “notional” down payment can never exceed 40% (or 50%) of the balance due.

IRAP 2020 advance payment

date: 27.10.2020
Area: Tax

With Circular Letter no. 27/E/2020, published on 19 October, the Tax Office returned to the topic of the Irap advance payment, focusing specifically on two aspects:

  • the calculation of IRAP to be paid for the balance of the tax period following the current one as at 31.12.2019 (2020 for persons with a financial year coinciding with the calendar year);
  • the possibility to offset or ask for reimbursement of any Irap credit resulting in case of over payment of the first down payment in relation to the balance due.

On the first point, the Tax Office clarifies that, regardless of the method of determination chosen to calculate the second advance payment, the first “notional” advance payment may never exceed 40% (i.e. 50% for Isa entities) of the total amount due for IRAP for the 2020 tax period, provided that the latter does not exceed what is actually payable.

With regards to the second point, the problem of offsetting any IRAP credit emerging if the first down payment exceeds the balance due does not arise either: in fact, given the above, the first “notional” down payment can never exceed 40% (or 50%) of the balance due.