Flash News NA 05/03/2024

CIT - What has changed with state budget 2023

With the end of 2023, the closing cycle now begins for most companies, except for those that have opted for a differentiated tax regime.

The process involved in the closing of accounts of companies which includes Inventory Verification, Fixed Assets Confirmation, Bank Reconciliations, Customer and Supplier Conference, Staff Account Verification, Status Account Validation, Control of Additions and Deferrals, Control of Remunerations to be Settled, etc., results in the settlement of the accounting and tax result.

CIT (Corporate Income Tax)

With the State Budget for the year 2023 the main changes to be considered when calculating the CIT are:

• The reduced CIT rate applicable to SMEs now covers small and medium-cap companies (Small Mid Cap)*, with the rate of 17% applicable to the first € 50,000 of tax base (previously € 25,000 applicable to SMEs), for the remaining tax base the normal rate of 21% applies;

• Charges for cars driven exclusively by electricity are taxed at the rate of 10%, when the acquisition cost exceeds € 62,500 (previously, the charges were not subject to autonomous taxation);

• Charges for plug-in hybrid and NGV-powered light passenger vehicles are taxed at the same autonomous tax rates: 2.5%, 7.5% and 15% (previously, plug-in hybrids were taxed at 5%, 10% and 17.5% and NGVs were taxed at 7.5%, 15% and 27.5%);

• A temporary period for tax loss carry forward is no longer foreseen. Moreover, the annual limit of the deduction to taxable profit is reduced to 65% (previously 70%), the increase of the limit of deduction to taxable profit by 10 p.p. for tax losses carried forward in the 2020 and 2021 tax periods is maintained;

• Expenses incurred on transport passes are now considered for the purpose of determining taxable profit at a value corresponding to 50% (previously 30%).

* Concept of Small Mid Cap Company which: does not meet the material conditions for being a micro, small or medium-sized enterprise, in accordance with the provisions of Article 2(1) of Decree-Law No 372/2007 of 6 November 2007, in its current version and its Annex, and which correspond to those provided for in Recommendation 2003/361/EC of the European Commission of 6 May 2003 (i.e. it is not an SME as defined in the framework of SME certification); it employs up to 500 employees as an autonomous enterprise (it can be up to 1 employee), it is a Small Mip Cap" _ Extracted from the IAPMEI site

 

In Nominaurea you will find a team available to support your company in all the fundamental issues for the development of your business, always complying with all the fiscal requirements.