The countdown has begun for Italian business owners, particularly those operating as sole proprietors under the simplified tax regime, as they rush to take advantage of the INPS contribution reduction set to expire soon. February 28, 2025, marks the final day for those who wish to benefit from this significant reduction of 35% on social security contributions.
Implemented for those enrolled with the IVS management of the Italian National Social Security Institute (INPS), the contribution discount is available exclusively to artisans and merchants. This means specific groups within the self-employed community can see substantial savings on their mandatory contributions, but it requires proactive effort.
Business owners often wonder who exactly qualifies for this incentive. The answer is clear: only sole proprietors registered under the IVS scheme can access this relief. Those who are enrolled with their respective professional pension funds, including lawyers, engineers, and accountants, are unfortunately excluded from this opportunity. Consequently, even professionals lacking traditional pension schemes who must register with the separate INPS will not be eligible for the reduction.
This year, there's the added twist of being able to request the contribution reduction for artisans and merchants outside the simplified tax regime as well. Guidance on how to apply for this has yet to be issued, and many are waiting for official instructions.
The mechanics of how the reduction works can lead to exceptional savings. It encompasses not only the fixed quarterly contributions tied to the minimum income bracket but also extends to the income exceeding this threshold, calculated during income declarations. There is no doubt—these financial adjustments can significantly lighten the load for qualified taxpayers.
To avail themselves of this benefit, applicants must submit their requests by the deadline of February 28, 2025. This deadline applies strictly to those who were operational as of January 1, 2025, and are utilizing the reduction for the first time. For individuals launching their business later this year, it’s imperative to act quickly after registration with the IVS to prevent delays in realizing the benefits of this contribution reduction.
Once the request has been submitted, there is no need for annual resubmission; the reduction remains active until the recipient explicitly renounces it. For those wishing to revoke the benefit, they must do so through official channels also by the same date—February 28, 2025. It’s important to note, should someone choose to decline the benefit, they cannot reapply for it again.
One other serious consideration before taking advantage of this 35% reduction is its potential impact on future pensions. Lowering contributions now could mean reduced payments toward future pension entitlements, which may affect long-term financial stability. Some business owners may opt to maintain their contributions at full rate to secure a greater pension down the line.
For those eligible, the submission of the application must be done through the INPS portal, particularly via the section designated for artisans and merchants. This area also provides the means for individuals to rescind previously requested benefits.
To recap the essentials:
- Application Deadline: Requests for the INPS contribution reduction must be submitted by February 28, 2025.
- Eligible Parties: Only artisans and merchants under the simplified tax regime registered with the IVS management of INPS.
- Extent of Reduction: A discount of 35% applies to both fixed and variable contributions relative to income.
- How to Apply: Applications must be made online via the INPS “Cassetto previdenziale artigiani e commercianti”.
- Future Pension Implications: Choosing to reduce contributions may result in lower pension bases for the future.
- Revocation: The renunciation of the benefit is irreversible and must be submitted by February 28.
With the deadline quickly approaching, business professionals are urged to assess their situations carefully and submit any required applications or revocations accordingly. The time to act is now, and ensuring proper compliance with INPS regulations could save substantial funds.