Financial Law 2018

The text approved by the Council of Ministers in particular confirmed:

  • the stop to the increase in VAT rates and Excise for 2018. More specifically, the safeguard clauses have been neutralized, thus avoiding the increase in VAT rates and Excises;
  • the blocking of the increase in local and regional taxes and fees;
  • promotion of competitiveness by reconfirming and introducing new tax incentives; many tax pressure containment measures and tax incentives, already contained in the previous financial law, such as facilities for building and energy restructuring, super-amortization and hyper-amortization, are confirmed;
  • investment in PMI – small and medium size companies (extension of the New Sabatini); to ensure operational continuity and to qualify more "Industry 4.0" key investments, the promotion measure for small and medium-sized enterprises known as "New Sabatini" is extended;
  • structural incentives for stable youth employment; from 1 January 2018 private sector employers who hire young people with growing protection contracts will benefit from a three-year discount on 50% social security contributions (excluding domestic workers).

The exemption also applies to recruitments in November and December 2017, with effect from 1 January 2018. The contribution discount also applies in cases of continuation of a contract of apprenticeship in a contract for an indefinite period, whatever the age of the worker at the time of the continuation and when an employer assumes, within six months from the completion of the degree, students who have experienced the alternation school-works or an apprenticeship school;

Among the other initiatives, the 2018 Financial Law will include interventions on the following topics:

  • renewal of Public Employment Contracts
  • “APE” woman
  • “APE” for indefinite period
  • RITA (Anticipated Temporary Integration Retirement)
  • Culture Bonus for the Eighteen year old
  • MIUR Package
  • resources for Metropolitan Provinces and Cities
  • local government investment
  • redemptions to municipalities for minor revenues
  • resources in favor of the Regions
  • broadband connection
  • measures for the “Mezzogiorno” (southern regions)
  • sports

Once the 2018 Financial Law is definitive and in the absence of major regulation changes, a specific circular regarding the main topics will be uploaded on the website.