A professional, about to start his own business, will be faced with the choice of adopting one of the following tax regimes:
- flat-rate scheme (currently the only advantageous tax regime);
- simplified regime .
At first glance, the convenience falls on the flat-rate regime because the taxation is extremely low: the rate is 5% in the case of start-ups for the first 4 years and 15% thereafter . The tax rates with the simplified regime instead range from a minimum of 23% to a maximum of 43% with the progressive method in brackets provided for by the IRPEF legislation.
However, it is important to know the fundamental characteristics of the flat-rate regime in order to make a considered choice between the latter regime and the simplified regime.
In the flat-rate regime, unlike the simplified regime, the income subject to taxation is not determined based on the classic difference between fees (receipts) and costs but through the application of a flat-rate percentage to the fees . Therefore, in the flat-rate regime, it is not possible to deduct costs . For example, a professional, who applies the flat-rate regime, will determine his/her income subject to taxation in this way: €10,000 (hypothesis of fees collected in a year) * 78% (flat-rate percentage) = €7,800 (income on which the 5% or 15% rate will be applied).
