A withholding tax of 20% if the amounts do not exceed 5 thousand euros and the activity carried out can be configured as casual work.
The so-called “occasional self-employed work” or “occasional work” (we will see the difference later) are regulated by the former article 2222 of the civil code by Legislative Decree 24 April 2017, n. 50 converted into Law 21 June 2017 n. 96 (art. 54 bis) which states that “Within the limits and with the methods set out in this article, the possibility of acquiring occasional work performances is permitted, meaning by this the work activities that give rise, in the course of a calendar year (…) to compensation of a total amount not exceeding 5,000 euros”.
These activities, as provided by law, are exempt from taxation in the case in which there is no other income; furthermore, up to 5500 euros for the 20% withheld you are still entitled to reimbursement through the tax return.
Let’s go into a little more detail by focusing on the deduction regime.
Differences between the two types
The differences are very subtle and mainly concern the type of coordination to which the worker is subject.
The “occasional self-employed work performances” are activities of an intellectual nature and without subordination and, above all, characterized by non-habituality. It is therefore not necessary to operate with a VAT number.
The “occasional performances“instead, they are carried out under the direction of the client and can fall within the scope of the so-called voucher work (or work vouchers).
Deductions
First of all, it should be highlighted that the modification of the Irpef rates provided for by Legislative Decree no. 216 of 30 December 2023, has a positive impact on the deductions due for occasional work as the gross Irpef tax on which the deduction is then applied is reduced.
As regards the deduction for occasional work income, as provided for by art.
13 of the Tuir (Consolidated Law on Income Tax), if one or more incomes contribute to the formation of the overall income, a deduction from the gross tax is due equal to:
- 1,265 euros, if the total income does not exceed 5,500 euros;
- 500 euros, increased by the product of 765 euros and the amount corresponding to the ratio between 28,000 euros, decreased by the total income, and 22,500 euros, if the amount of the total income is greater than 5,500 euros but not greater than 28,000 euros.
- 500 euros, if the total income is greater than 28,000 euros but not 50,000 euros. The deduction is due for the part corresponding to the ratio between the amount of 50,000 euros, reduced by the total income, and the amount of 22,000 euros.
In fact, therefore, a no tax area of 5,500 euros with a deduction of 1,265 euros, to be recalculated for higher incomes.