With Circular 8 / E of 14.07.2021 the Revenue Agency has provided clarifications in relation to art. 150 del DL 34/2020.
This rule provides for the possibility of being replaced, that is, the recipient of the sums subject to withholding, which is then held, for any reason to return them to the substitute, to repay the sums net of the withholding tax.
Art. 10 lettera da) of the TUIR provided that the substitute was obliged to reimburse the sums subject to withholding to the substitute, could consider the amounts repaid as a deductible charge, indicating them in your tax return. This rule referred to the case, only admitted before the DL 34 quoted, of return gross of the withholding tax.
The Agency, illustrating the new right of restitution net of withholding, he specifies that it also applies to substitute taxes, to withholding taxes and which is an alternative to the possibility of considering the amounts returned as a deductible charge.
The substitute, who receives the sums net of the withholding tax made at the time, is entitled to a tax credit of 30% of the amount received (not the gross sum paid out). The circular contains the following example gross sum due by the substitute 100, withholding 23, net sum 77. The tax credit is 77 x 30% = 23,1 and substantially coincides with the withholding made and no longer due or returned.
Obviously, in the presence of lower rates the substitute has an advantage (it is. 80 returned net of withholding tax 20, tax credit equal to 80 x 30% = 24, earning of 24-20 = 4) and a disadvantage in the presence of higher rates (it is. 74 returned net of the substitute tax of 26, tax credit equal to 74 x 30% = 22,2 loss of 26-22.2 = 3,8).
The circular specifies that the new rule is applicable to net refunds made from 01.01.2020, without prejudice to the relationships already defined on the date of entry into force of the Legislative Decree 34/2020 (19.05.2020).
Therefore, for example, if the person replaced on that date has already returned the sums unduly received, gross of withholding taxes, cannot make use of the new provision.
The refund of the net sums in question and the resulting tax credit, must be indicated, respectively, in the CU and in the model 770.