Establishment of the tax code 4050 for the payment of suspended withholding taxes

With resolution no. 50/E of 7th September 2020, the Inland Revenue established the tax code “4050” for the payment of suspended withholding tax by withholding agents between 17th March 2020 and 31st May 2020.

The suspension, introduced by Article 19, paragraph 1, of Decree-Law no. 23 of 2020 (the so-called “Liquidità”), provided for the possibility for subjects with tax domicile, operational or legal headquarters in the territory of the State and with revenues or compensation not exceeding 400.000 euros in the tax period prior to the current one on 17 March 2020, not to be subject to withholding taxes, as per Articles 25 and 25-bis of Presidential Decree 600/73, on revenues and compensation received in the period between 17th March 2020 and 31st May 2020, by the withholding agent, provided that in the previous month they had not incurred expenses for employment or similar services.

In order to make use of this option, the taxpayer had to issue an appropriate declaration stating that he was not subject to withholding tax under the aforementioned decree-law on revenues or compensation, and pay the suspended withholding tax in a single solution by 31 July 2020 or alternatively by installments up to a maximum of five monthly installments of the same amount starting from July, without the application of penalties and interest.

This deadline was first extended by art. 26 paragraph 2 of Decree-Law no. 34 of 2020 (so-called “Rilancio”) to 16 September or by monthly installments of equal amount, up to a maximum of four installments, the first one by 16 September 2020, without the application of interest or penalties.

Finally, the recent Decree-Law no. 104 of 2020 (so-called Agosto), in Art. 97, established that the aforementioned payments may be made in further installments, with the possibility of paying only 50% of the amounts suspended by 16 September 2020.

The remaining 50% may be paid through installments, up to a maximum of twenty-four equal monthly installments, with the payment of the first one by 16 January 2021, without the application of penalties and interest.

The Inland Revenue, in the resolution, has also specified details of how the F24 form should be filled in.