Manoeuvre in the House: from cutting the wedge to adjusting pensions, all measures

For banks, the postponement of deductions of the portions of loan write-downs and losses and goodwill related to Dta arrives. This is provided for in the Budget Law. The deduction of the 11% portion of the negative components for IRES and IRAP purposes in 2025 is deferred 'in equal instalments, to the tax period in progress as at 31 December 2026 and to the following three'. That of 4.7% for the tax period in progress on 31 December 2026, 'is deferred, on a straight-line basis, to the tax period in progress on 31 December 2027 and the following two'. Those of 13% and 10% for the tax periods 2025 and 2026 are deferred 'on a straight-line basis, respectively' to 2026 and the following three years and to 2027 and the following two years.

It changes the mechanism to strengthen the payroll of employees up to EUR 40,000, extending the previously envisaged effects up to EUR 35,000 by cutting the contribution wedge. The first regulatory article of the budget law confirms the current Irpef rates and raises the base for labour deductions from EUR 1,880 to EUR 1,955. Then it provides, up to 20,000 euro of income, the recognition of a non-taxable bonus that varies according to earnings: 7.1 per cent up to 8,500 euro, 5.3 per cent between 8,500 and 15,000 euro, 4.8 per cent between 15,000 and 20,000 euro. Beyond this amount there is a mechanism of additional deductions to be recognised in the pay packet: 1,000 euro between 20,000 and 32,000 euro, and then a decalage up to 40,000 euro.

For the pensions of an amount equal to or lower than the minimum wage there will be an increase of 2.2 per cent in 2025 and 1.3 per cent in 2026. This is stated in the Budget manoeuvre. The 2.7 per cent increase planned in the Budget Act for 2024 expired this year. Pensions will rise to EUR 617.9 from the current EUR 614.77 because the calculation basis is the one before the 2.7 per cent increase given last year increased with the 1 per cent inflation recovery.

Facilitation is coming for those who wish to avail themselves of the so-called Maroni bonus. Workers who meet the requirements for access to Quota 103 (62 years of age and 41 of contributions in addition to the moving window period) who decide to stay at work 'may waive the contributory crediting of the quota of contributions for their own account' and receive them in their pay envelope. The employer will pay them into the paycheck and will be exempt from paying this share to the INPS. The budget manoeuvre clarifies how these contributions (amounting to 9.19% of the salary) do not contribute to income formation.

Public administrations 'also for the performance of tutoring and coaching activities for newly recruited staff and for functional needs that cannot be otherwise fulfilled, may retain in service, subject to the availability of the interested party, within the limit of ten per cent of the hiring power, employees with the exclusion of the staff of the judiciary and of the State's lawyers and prosecutors, whose services they deem necessary to continue to be used'. Staff may not remain in service beyond the age of seventy.

The bonus for working mothers with at least two children is also extended to the self-employed. This is provided for in the Budget Bill filed with Parliament. As of 2025, a partial exemption from social security contributions is recognised, up to an expenditure limit of €300 million per year, for female employees, excluding domestic work, and self-employed women who receive at least one of self-employment income, business income in ordinary accounting, business income in simplified accounting, or income from participation and who have not opted for the flat-rate regime. Female workers must be mothers of two or more children and the exemption from social security contributions is granted until the age of the youngest child and, from 2027, if they are mothers of three or more children, the exemption from social security contributions is granted until the age of the youngest child reaches 18. The exemption from contributions is granted provided that the salary or income taxable for social security purposes does not exceed EUR 40,000 on an annual basis.

"In order to encourage the birth rate and contribute to the expenses for its support" a one-off "new birth bonus" of one thousand euros is provided for each child born or adopted from 1 January 2025. The amount, paid in the month following the month of birth or adoption, does not contribute to the formation of income and is paid for the children of Italian citizens, citizens of an EU Member State or of a non-EU Member State in possession of a European residence permit 'for long-term residents or holders of a single work permit' or for research purposes of at least six months. The condition is that the household must have an Isee of less than 40,000 euro per year. The cost of the measure is 330 million in 2025 and 360 million in 2026.

The health care expenses and those related to home mortgages are excluded from the ceiling of the revision of deductions in the manoeuvre. This is what emerges from the text deposited by the Chamber. "Excluded from the calculation of the total amount of charges and expenses," it reads, "are deductible healthcare expenses" as well as "are excluded" charges "incurred in connection with loans or mortgages taken out until 31 December 2024". Moreover, 'for the purposes of this article, the total income is taken net of the income of the property unit used as the main dwelling'.

Tightening up on deductions for those with an income over 75 thousand euro, but with benefits that grow according to the number of children. According to the text of the manoeuvre - in fact - those with an income between EUR 75,000 and EUR 100,000 will be able to deduct up to a maximum of EUR 14,000, 8,000 over EUR 100,000. In the absence of children, the figure is halved (multiplied by a coefficient of 0.5) for those who have only one child, reduced by a coefficient of 0.85, it remains the same if they have more than three children or children with disabilities. A taxpayer over 100,000 without children will be able to deduct €4,000 on balance.

The squeeze on transactions in cryptocurrencies such as Bitcoin is confirmed. The substitute tax on capital gains and other income is increased to the rate of 42%. In addition, the revenue ceiling for companies liable to tax on digital services, i.e., entities engaged in business activities that generate revenue from digital services in the territory of the State, also falls.

For the renewal of public contracts for 2025-27, the manoeuvre allocates EUR 10.855 billion over three years. "For the three-year period 2025-2027," it reads, "the charges placed on the state budget for national collective bargaining and for economic improvements of state personnel under public law are altogether determined at €1,755 million for the year 2025, €3,550 million for the year 2026 and €5,550 million annually from the year 2027.

From 2025 there will no longer be unemployment benefits for repatriated workers under Law 402 of 1975. This law provides that in the event of unemployment resulting from dismissal or non-renewal of the seasonal employment contract by the employer abroad, repatriated Italian workers, as well as frontier workers, are 'entitled to ordinary unemployment benefits for a period of 180 days, less any period compensated under the rules of international agreements'. "Law No. 402 of 25 July 1975," reads the manoeuvre, "does not apply to terminations of employment occurring after 1 January 2025".

In order to contribute to the achievement of the programmatic objectives of public finance, starting from the year 2025, the Automobile Club d'Italia shall also pay to the State budget a sum equal to 50 million per year. The resources shall remain vested in the Treasury.

Deductible stock options at the time of actual assignment. This is confirmed by the Manovra, which has just been sent to the Chamber of Deputies, in the provision on 'provisions for charges connected with stock option plans'. The text states that 'negative components charged to the profit and loss account in connection with share-based payment transactions settled with its own equity instruments or with shares of other group companies are deductible at the time of assignment; at that time, the higher values of equity investments recognised by group companies whose equity instruments are assigned as a result of such transactions are also recognised. The provisions shall apply to share-based payment transactions for which the related charges are recognised for the first time in the financial statements for the financial year current on 31 December 2025 or in subsequent financial years'.

In order to reduce 'operating costs', in 2025 Rai will not be able to increase expenditure on personnel and consultancy, which may not exceed the level of 2023. And in 2026 it will have to reduce personnel and consultancy expenditure by at least 2 per cent compared to the average expenditure incurred in the three-year period 2021-2023. This is stipulated in an article of the budget law. For the year 2027, the expenditure reduction rises to 4 per cent.

A unified contribution, i.e. taxation for the costs of judicial acts, equal to 600 euros for disputes concerning the ascertainment of Italian citizenship. This is provided for by the manoeuvre, which adds a new paragraph to the Consolidated Law on Justice Costs. The contribution - it reads - is due for each plaintiff, even if the application is made jointly in the same judgment. Legislation already provides for the payment of the unified contribution in cases such as applications for citizenship.

From 2025 there will be an additional weekly draw for the Lotto and Superenalotto games on Fridays. This is stated in the Budget manoeuvre. If this additional draw falls on a public holiday recognised for civil purposes throughout the national territory, it will be postponed to the first following working day or, in exceptional cases, it will be brought forward to the first preceding working day, by directorial decree of the Customs Agency, guaranteeing the progressive continuity of the competitions. The National Emergencies Fund is increased by EUR 50 million per year as from 2025.

The parties, including the majority, put forward their own requests for possible changes. "We are not very happy," stresses FI's group leader in the Senate Budget Committee, Dario Damiani, bluntly, "with the cap on public managers' salaries. In recent years, precisely because of the ceiling, many managers have left the public administration for private companies. A reflection is needed'. And if FI makes it clear that it will try to modify this measure, the League, for its part, announces that it will propose changes to the connected tax decree. 'Last year, thanks to the League,' claims Alberto Gusmeroli, president of the Productive Activities Committee of the Chamber of Deputies, 'the maxi advance payment of November 2023 for taxpayers was paid in instalments. This year the aim is not only to make the measure structural but also to extend it to Inps contributions'.