The ordinary deadline for filing Italian tax returns and IRAP Forms is November 30th. Late tax returns may be filed within 90 days of the deadline: February 28th of the following year.
A declaration submitted after 90 days is considered omitted and subject to penalties (late declaration), which are, however, applied at a reduced rate if the declaration is submitted by the deadline for submitting the declaration for the following year.
Tax declaration deadlines
Tax deadlines for tax declarations are:
- September 30th for those who file the 730 Form. After that date, it is possible to use the Redditi Form.
- November 30th for those who file the Redditi Form.
Therefore, the tax return for year 2022 is due on November 30th 2023 (Presidential Decree 322 of 22/07/1998).
Late tax declaration
For those who have not filed their 2023 income tax return for the year 2022 by the ordinary deadline of November 30th, there is still the possibility to file their tax return within 90 days, through a late declaration.
The declaration is late but still considered valid.
The breach for late submission of the declaration can be remedied by paying a penalty of €25 (equal to 1/10 of the minimum penalty of €250), at the same time of the declaration.
Any late/incorrect payment of taxes can be regularised by applying the ‘ravvedimento operoso’, which varies depending on when the payment is made.
Failure to file a tax return after 90 days
A tax return filed after 90 days is considered omitted. If the declaration is omitted, it is not possible to use ravvedimento operoso. Therefore, it is not possible to regularise one’s position spontaneously.
Penalties for late tax returns
The following penalties apply in the event of an omitted tax return (Art. 1 of Legislative Decree 471/97):
- Case A – taxes due: penalty from 120% to 240% of the amount of the taxes resulting from the tax return.
- Case B – taxes not due: fixed penalty from €250 to €1,000 if the tax return does not show any taxes due.
- Case C – taxes due exceeding EUR 50,000: criminal offence punishable by imprisonment from 2 to 5 years (Article 5 of Legislative Decree 74/2000).
How to remedy a late declaration
Legislative Decree 158/2015 introduced the possibility to still file a tax return beyond 90 days from the ordinary deadline.
Therefore, a taxpayer who has failed to file a tax return within the 90 days may:
- File the omitted tax return anyway;
- Pay the debit taxes due, resulting from the omitted tax return, by using ravvedimento operoso.
If these two requirements are carried out before the commencement of any administrative assessment activity, the penalties for failure to declare will be as follows:
- Case A – taxes due but paid through ravvedimento operoso: fixed-rate penalty from €250 to €1,000. In case of submission within the deadline for submitting the declaration for the following tax period, the fixed penalty is reduced as follows: from €150 to €500. Circular 54/E of 19/06/2002, par. 17.1, provides that ‘tax due is deemed to be the difference between the assessed tax and the tax paid for any reason’. Therefore, if the taxes are fully paid, the penalty for omitted declaration is imposed as a fixed amount.
- Case A1 – taxes due but not paid: penalty from 120% to 240% of the amount of tax resulting from the tax return (minimum amount: €200). In case of submission within the deadline for submitting the tax return for the following tax period, the penalty is reduced by 50%: from 60% to 120% of the amount of tax resulting from the tax return (minimum amount: €200).
- Case B – taxes not due: fixed penalty from €250 to €1,000. In case of submission within the deadline for submitting the declaration for the following tax period, the fixed penalty is reduced as follows: from €150 to €500.
- Case C – taxes due exceeding €50,000: non-punishability of the criminal offence.
Article 13(2) of Legislative Decree 74/2000 provides that:
the offences referred to in Articles 2, 3, 4 and 5 shall not be punishable if the tax debts, including penalties and interests, have been discharged by full payment of the amounts due, following a ravvedimento operoso or the submission of an omitted tax return by the deadline for submitting the declaration for the following tax period
This applies provided that a criminal or tax assessment has not already begun.
Filing tax returns beyond 90 days can be convenient
Generally speaking, therefore, although it is not possible to rectify the breach through ravvedimento operoso, it may be advantageous to submit the tax return beyond 90 days from the original deadline. In fact, if submitted by the deadline for sending the declaration for the following year, the taxpayer may benefit from:
- A 50% reduction in taxes;
- The non-punishability under criminal law for the offence of omitted declaration in cases of taxes due exceeding €50,000.
In addition, the declaration submitted (even if considered ‘omitted’) constitutes grounds for the collection of the taxes settled therein (Article 2 c. 7 Presidential Decree 322/98), which are entered on the tax roll (net of any amounts already paid). Submitting the declaration, therefore, may induce the tax office to avoid an inductive assessment (Article 41 of Presidential Decree 600/73).
Special cases
Flat tax (cedolare secca) option In the case of rental income, the flat-rate taxation option means that the penalties for omitted declaration are doubled.
Income produced abroad In the case of income produced abroad, the penalty is increased by 1/3.
When an omitted declaration becomes time-barred
The time limit for an assessment on a filed tax return is December 31st of the 5th year following the year in which the declaration was filed. In the case of an omitted declaration, the time limit for assessment is longer.
If the tax return is omitted, the deadline for assessment becomes December 31st of the 7th year following the year in which the declaration should have been filed.