What are the advantages of the Flat-Rate Scheme?
Posted: Mon Apr 21, 2025 4:58 am
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Its name comes from the procedure for calculating taxable income (the sum on which income tax and social security contributions are calculated). It is determined by applying a lump sum of costs directly to the revenue collected rather than analytically (revenues - costs).
This first simplification is central to the entire Regime, as the ease of calculating and monitoring the economic performance of the company represents one of its main advantages. The downside of this advantage, however, is that in the flat rate it is not possible to deduct (“write off”) any cost, with the exception of social security contributions relating to the activity.
What this Regime is famous for, however, is the so-called “Flat Tax”, that is, the fact that it provides for a single rate, valid for all subjects belonging to the Regime, regardless of taxable income.
This allows for easier identification of the income tax to thailand email list be paid (unlike the IRPEF brackets which have a slightly more complicated functioning), as well as a saving, especially for the highest incomes, of "taxes".
But the advantages of the Flat-Rate Regime, in reality, go well beyond, involving the economic, financial and operational spheres of the company.
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Economic Benefits
The first (and most obvious) of the advantages is, as we have just seen, the Flat Tax: a single tax rate, equal to 15% of the taxable income. This tax replaces the IRPEF and also determines the exclusion from IRAP.
Furthermore, this rate can decrease to 5% for the first 5 years, benefiting from the so-called StartUp Bonus (even if it has nothing to do with StartUps), if some requirements are met.
Its name comes from the procedure for calculating taxable income (the sum on which income tax and social security contributions are calculated). It is determined by applying a lump sum of costs directly to the revenue collected rather than analytically (revenues - costs).
This first simplification is central to the entire Regime, as the ease of calculating and monitoring the economic performance of the company represents one of its main advantages. The downside of this advantage, however, is that in the flat rate it is not possible to deduct (“write off”) any cost, with the exception of social security contributions relating to the activity.
What this Regime is famous for, however, is the so-called “Flat Tax”, that is, the fact that it provides for a single rate, valid for all subjects belonging to the Regime, regardless of taxable income.
This allows for easier identification of the income tax to thailand email list be paid (unlike the IRPEF brackets which have a slightly more complicated functioning), as well as a saving, especially for the highest incomes, of "taxes".
But the advantages of the Flat-Rate Regime, in reality, go well beyond, involving the economic, financial and operational spheres of the company.
undefined
Economic Benefits
The first (and most obvious) of the advantages is, as we have just seen, the Flat Tax: a single tax rate, equal to 15% of the taxable income. This tax replaces the IRPEF and also determines the exclusion from IRAP.
Furthermore, this rate can decrease to 5% for the first 5 years, benefiting from the so-called StartUp Bonus (even if it has nothing to do with StartUps), if some requirements are met.