TAX EXEMPTIONS AT THE TIME OF A HEALTH EMERGENCY: the first indications have been launched by the National Labor Inspectorate

As known, Legislative Decree n. 104/2020 (“August Decree”), in force since 15 August 2020, introduced numerous measures aimed at supporting businesses and workers to deal with the COVID-19 health emergency.

CONTRIBUTION EXEMPTION FOR COMPANIES THAT DO NOT REQUIRE WELCOME FUND TREATMENTS

With reference to the contribution exemption in favor of companies that do not request redundancy payments due to COVID-19 and which have already benefited from the aforementioned treatments in the months of May and June 2020, the INL (National Labor Inspectorate) substantially confirms the provisions contained in the so-called. August decree. In particular, the contribution exemption in question:

• is quantified within the maximum limit equal to double the hours of wage supplementation already used in the months of May and June 2020;
• is valid for a maximum period of 4 months;
•  can be used by 31 December 2020;
• does not include premiums and contributions due to INAIL.

The prohibition on collective and individual dismissals for justified objective reasons applies to the employer who benefits from the contribution exemption. In the event of violation of the aforementioned prohibition, the exemption from contributions will be revoked with retroactive effect, with consequent impossibility of accessing salary integration treatments.

CONTRIBUTION EXEMPTION FOR PERMANENT-TERM EMPLOYMENTS

The exemption from contributions in question is recognized for permanent hires made after the entry into force of Legislative Decree no. 104/2020 (15 August 2020) and by 31 December 2020, regardless of the age of the workers.

Employers can benefit from total exemption (100%) from the payment of social security contributions payable by them (the exemption does not include premiums and contributions due to INAIL), for a maximum period of 6 months starting from the date of hiring and up to a maximum limit of 8,060 euros per year (reset and applied on a monthly basis).

The exemption from contributions in question also applies to permanent transformations of fixed-term contracts, after the date of entry into force of the August Decree (i.e. after 15 August 2020), while it is excluded for hires made:

• with an apprenticeship contract;
• permanent contracts for workers who have already had a permanent contract in the 6 months prior to being hired by the same company