On April 23, 2025, the decree-law n. 55 was published in the Official Gazette, Serie Generale, n. 94, containing urgent provisions regarding IRPEF advance payments due for the year 2025. This decree, which came into effect the following day, April 24, 2025, introduces significant changes in the realm of IRPEF advance payments, particularly for employees and pensioners without additional income.
The new legislation modifies Article 1, paragraph 4, of Legislative Decree 216/2023 by replacing the phrase "the tax periods 2024 and 2025" with "the tax period 2024." This change means that employees and pensioners without extra income will not be required to pay any IRPEF advance payment for the year 2025.
The need for this regulatory intervention arose from concerns expressed by CAF (Centro di Assistenza Fiscale) and trade unions, who warned of a potential tax burden increase for employees and pensioners due to the application of the previous legislative framework. According to a press release from the Ministry of Economy and Finance (MEF) dated March 25, 2025, the intention behind this decree was to ensure that the new IRPEF rates for 2025 would be applied in the calculation of tax advances.
Under the previous framework, the reduction of the IRPEF rate from 25% to 23% for income between €15,000 and €28,000, along with an increase in the employee deduction from €1,880 to €1,955, was only applicable for the 2024 tax period. This led to a situation where the tax obligations for 2025 could have remained based on the 2023 rates, which would have imposed an unfair burden on many taxpayers.
In clarifying the legislative intent, the MEF emphasized that the changes to the IRPEF regime were designed to only affect those taxpayers whose income declarations indicated a tax liability. Specifically, those who did not have to file an income declaration due to lacking additional income would not be impacted by this adjustment. Consequently, the advance payment for 2025 is only owed when the difference between the tax owed for 2024 and the deductions, tax credits, and withholding taxes exceeds €51.65, calculated under the 2024 regulations.
The regulatory correction aims to eliminate any interpretive doubts that may have arisen regarding the application of these tax rules. The decree also states that the current expenditure fund referenced in Article 1, paragraph 886, of Law 207/2024 will be increased by €245.5 million for the year 2026.
Furthermore, the financial implications of this decree are significant, as the costs associated with the changes are estimated at €245.5 million for the year 2025. To offset these costs, a corresponding reduction will be made to the fund referred to in Article 1, paragraph 519, of Law 213/2023. This adjustment is part of a broader effort to ensure fiscal responsibility while accommodating the new tax structure.
The approval of this decree by the Council of Ministers on April 22, 2025, was a crucial step in addressing the concerns raised by various stakeholders, including the CAF, who expressed satisfaction with the outcome. The decree not only clarifies the rules governing IRPEF advance payments but also seeks to prevent any unnecessary increase in the tax burden on employees and pensioners.
As the new tax year unfolds, the implications of this decree will be closely monitored by tax professionals and the public alike. The MEF's proactive stance in addressing these issues reflects a commitment to ensuring that the tax system remains fair and equitable for all taxpayers.
With these changes, the landscape of IRPEF advance payments for 2025 is now clearer, paving the way for a more streamlined approach to tax obligations for individuals in the workforce and retirees. This regulatory action underscores the government's responsiveness to the financial realities faced by citizens, particularly in light of ongoing economic challenges.
In summary, the decree-law n. 55 of April 23, 2025, represents a pivotal adjustment in the Italian tax system, specifically regarding IRPEF advance payments. By eliminating the requirement for certain taxpayers to make advance payments, the government aims to alleviate potential financial strain and ensure that tax obligations are aligned with the current economic context.
