Decree Law 157/2020: suspension of payments for the month of December

Decree Law 157/2020 provided for the suspension of some tax / social security payments with ordinary expiry in December 2020.

The suspension concerns in particular:

  • Value added tax (periodic VAT for the month of November 2020, expiring on 16.12.2020 for monthly taxpayers, and the year-end downpayment of VAT for tax year 2020, expiring on 28.12.2020);
  • Withholding taxes on employee and similar income and withholdings relating to additional regional and municipal personal income tax due on 16.12.2020;
  • Social security and welfare contributions expiring on 16.12.2020.

The subjects for which the following requirements are verified can benefit from the suspension of the aforementioned payments:

  • achievement, in the tax period prior to the one in progress at 30 November 2020 (2019 for solar subjects), of revenues equal to or less than 50 million euro;
  • decrease in turnover or fees in November 2020 by at least 33% compared to November 2019

regardless of their location on the national territory.

In the event of carrying out one of the activities suspended as a result of the provisions of Article 1 of the Prime Ministerial Decree of 3 November 2020, the suspension of payments applies in any case, regardless of the location on the national territory and even if the conditions indicated above are not respected.

Suspension also applies to:

  • subjects who carry out the activities of restaurant services in the “orange areas” or in the “red areas”, as identified on 26.11.2020 with orders of the Minister of Health;
  • subjects falling within the economic sectors indicated in Annex 2 to Decree Law 149/2020 or the subjects who exercise the hotel business, travel agency or tour operator business in the “red areas”, as identified as of 26.11.2020 with orders of the Minister of Health;
  • subjects who have undertaken a business, art or profession after 30 November 2019, without further conditions.

Payments subject to suspension can be made, without the application of penalties and interest:

  • in a single solution by 16.03.2021
  • or with the payment of four monthly installments of the same amount, the first of which to be paid on 16.03.2021.