Law no. 234 of 30 December 2021 (Budget Law 2022) introduced important tax and social security changes.

  Tax reform

From 1 January 2022, the IRPEF brackets, the rates applied and the calculation of employee deductions will change. Below are the details of the changes introduced.

1.Revision of IRPEF

• For income from 15.000 to 28.000 euros, the tax rate is lowered from 27% to 25%;
• For incomes up to 50.000 euros, the 38% rate is reduced to 35%;
• The previous rate of 41% disappears, as over 50.000 euros there is a single rate of 43%.

2. Remodeling of deductions
The system to calculate employee deductions also changes. In fact, the first income threshold to which the deduction is applied is extended, passing from 8.000 to 15.000 euros. For the second income threshold, which goes from 15.000 to 28.000 euros, the measure of the fixed component of the deduction goes from 978 to 1.910 euros and the method of calculating the variable component is changed, which is equal to 1.190 euros for an income of 15.000 euro and which decreases, as income increases, until it is canceled out when it reaches 28,000 euros. The third and final income threshold for which the deduction is due is lowered from 55.000 to 50.000 euros; however the maximum deduction for such income goes from 978 to 1.910 euros. In particular, this deduction amounts to 1.910 euros for income equal to 28.000 euros and decreases until it is canceled at the threshold of 50.000 euros. Finally, for income brackets between 25.000 and 35.000, an increase of 65 euros has been provided for the deduction applicable.

3. Remodeling of the supplementary treatment and abolition of the further deduction
Compared with the old regulations, the revision of the rates and calculation of deductions from employment, provides for improved treatment. 
For annual incomes of up to 15,000 euros, the supplementary allowance will continue to be paid by the withholding agent on the salary coupon. For incomes up to 28,000 euros this benefit may be recognized during the tax return, only in the presence of specific prerequisites of the rule. 
Likewise, the positive remodeling of the calculation of tax parameters also for incomes above 28.000 euros offset the abolition of the additional deduction previously provided for income from 28.000 to 40.000 euros, which is therefore no longer due from 1 January 2022.
 

  Contribution concessions

The 2022 Budget Law provides for a contribution relief for employees with taxable social security wages of up to € 35.000 per year (€ 2.692 gross per month) of 0.8 percentage points, for the year 2022 alone. The activities for updating the procedures of NoiPA system are running, following the publication of INPS circular n.43 of March 22nd.

  Single and Universal Check

In order to reorganize, simplify and strengthen the measures in support of families with children, the legislative decree of 29 December 2021 n. 230, in implementation of law no. 46 of 2021, the Single and Universal Check was established, repealing the rules relating to tax deductions for dependent children up to 21 years of age (Article 12, paragraph 1, letter c) and paragraph 1-bis of the TUIR) and those that provide for the allowance for family unit (art. 2 of the decree-law of 13 March 1988, n. 69, converted by the law of 13 May 1988, n. 153).
Starting from the salary of March 2022, the allowances to the family unit for families with children will be replaced with the disbursement by INPS of the Single and Universal Check, upon request to be made directly to the Social Security Institute, at the following link: https://www.inps.it/prestazioni-servizi/assegno-unico-e-universale-per-i-figli-a-carico. The 5-year term remains valid for requesting any arrears of allowances from the family unit, for families with children due until February 28, 2022, which can be paid in the salary slip.
The allowances for families without children will continue to be paid in the slip by NoiPA.
Also starting from the salary of March 2022, the tax deductions will be automatically recognized from 1 March only for children with 21 years of age by 31 March 2022, if already present in the NoiPA database.