The flat-rate scheme attracts lawyers and psychologists: seven out of ten opt for the flat tax
Whilst the Government is considering raising the cap on fees for access to the profession, the preferential scheme is attracting more professional groups, from architects to surveyors. The standard fee ‘wins out’ amongst doctors and accountants
There are almost 155,000 lawyers using the flat-rate scheme, out of a total of 233,000 lawyers registered with the sector’s pension fund. Among architects, the figure is 70,000 out of 92,000. For psychologists, it is almost 73,000 out of 87,000. These percentages range from 66 to 75 per cent and confirm the widespread adoption of the flat tax. The significance of this figure is demonstrated by the fact that, when all VAT-registered individuals are taken into account – including non-professionals – 52 per cent are participants in the preferential scheme.
Even in some professional sectors, however, taxpayers under the standard tax regime are in the majority: more than half of accountants and employment advisers (grouped together in the Ministry’s statistics) submit ISAs – the tax reports from which those on the flat-rate scheme are exempt. The same is true of doctors.
Behind the gaps
One of the main reasons for these differences between categories – though not the only one – is the upper limit on turnover and remuneration for the flat-rate scheme, currently set at 85,000 euros per annum. Where turnover is higher on average, there are fewer flat-rate scheme participants. This is why it is important to focus on the figures, given that the proposal to raise the threshold to 100,000 euros – which crops up as reliably as clockwork every year – has once again reared its head in discussions on the 2027 Budget Bill.
In order to proceed, Italia needs the European Union’s approval, given that those on the flat-rate scheme, as well as being subject to the 15 per cent substitute tax (5 per cent for new businesses), do not pay VAT, which is a harmonised tax. However, whilst we wait to see what, if anything, the budget will decide, we can examine the – previously unpublished – picture that emerges by cross-referencing the figures reported by the Court of Auditors in its Report on the General State Accounts, the ISA tax returns and the numbers of members registered with the funds. All these figures relate to the 2024 tax year, the most recent for which complete information is available.
If one compares the figures for those opting for the flat-rate scheme with those for professionals who have submitted individual ISAs (natural persons), the ratio is almost three to one amongst lawyers and seven to one amongst psychologists. But even amongst architects and surveyors, the number of those who have opted for the flat-rate scheme is more than double that of their colleagues using ISAs.
