Budget 2023: what you need to know about the new budget law

The Budget Law, also called Economic maneuverit is a law of the Italian Republic that contains the budget of our country. Inside, the government explains in detail what the income-expenses and financial coverage will be for the following year. The definitive text must be approved by Parliament by December 31st, to then be published in the Official Journal and come into force from January 1st.

During the day of November 21, the Council of Ministers met and approved the State budget forecast for the financial year 2023 and the multi-year budget for the three-year period 2023-2025.

So let’s find out which ones novelty are expected for entrepreneurs and professionals for 2023:

• Set flat: Introduction for self-employed workers of an incremental flat tax of 15% with a 5% deductible and a maximum ceiling of €40,000. The threshold of the flat-rate scheme has been raised to €85 thousand.
• Dear energy: Resources are introduced for measures against high energy prices for the first three months of 2023 for an amount of 21 billion euros, which will allow aid to businesses and families to be increased. The elimination of improper bill charges has been confirmed, the tax credit for the purchase of electricity and natural gas has been refinanced until 30 March 2023 which for bars, restaurants and commercial establishments will rise from 30% to 35% while for energy and gas-intensive businesses from 40% to 45%. Approximately 3.1 billion has been allocated for healthcare and local authorities, including public transport.
• Cutting the tax wedge: Up to 3% for employees with low incomes for a total of 4,185 billion. There is then a contribution exemption of 2% for incomes up to €35,000 and 3% for incomes up to €20,000.
• Cash: From 1 January 2023 the threshold for the use of cash will increase from €1,000 to €5,000.
• Bitcoin tax: The rationalization of Construction Bonuses and Tax Expenditures emerges, as well as a ‘bitcoin tax’ on capital gains from crypto-assets.
• Work: For employees, the rate is established at 5% for productivity bonuses up to €3,000.
  Facilitation is provided for permanent hiring with a contribution threshold of up to €6,000 for those who already have a fixed-term contract and in particular for women under 36 and for citizens’ income recipients.
  An incremental flat tax of 15% with a 5% deductible and a maximum ceiling of €40,000 is introduced for self-employed workers.
• Citizenship income: From 1 January 2023, people between 18 and 59 years old (able to work but who do not have disabled people, minors or dependents at least 60 years of age in their household) will be granted citizenship income up to a maximum of 7/8 monthly payments. Furthermore, a period of at least 6 months of participation in a training or retraining course is expected. Otherwise, the income benefit will lapse. It also lapses if the first reasonable offer is rejected.
• SME guarantee fund: The Ipo fund has been refinanced for 1 billion for 2023. The fund guarantees all financial operations directly aimed at business activities granted by a financing entity (bank or other). The fund promotes the listing of SMEs on the stock exchange.
• Pensions: A new pension advance scheme is launched which allows you to retire with 41 years of contributions and 62 years of age. For those who decide to stay at work, a 10% tax deduction is envisaged. Women, on the other hand, will retire at 58 with two children or more, 59 with one child, 60 in other cases.