A new legislative change has made it possible for public servants who have retired to access the retirement scheme, but with a new cap imposed by Law on Stability 2015.

The new legislation introduces new rules for former public servants who wish to access the retirement scheme. Specifically, they can use tax at the rate of 15% on their freelance income, even though this may be limited by their dependent employment income or pension. The only obstacle could stem from having received more than the specified amount of dependent employment income or pension in the previous year under the law. The retirement scheme is regulated by Article 1, paragraphs 54-89, of Law No.

The law of stability for 2015 applies to individuals who, in the previous year, received income or compensation up to €85,000 and supported expenses for dependent workers and freelancers up to €20,000 gross. In 2015, the law asked that earnings from work should prevail over those from independent employment or retirement benefits, which effectively excluded many retirees with VAT numbers. Article 1, paragraph 111, of Law No. 208/2015 has replaced the precedence criterion starting from 2016 with a ceiling of €30,000 in earnings from freelance work and equivalent ones: suspended only in 2019, it is now limited by the letter D-TER of paragraph 57.

The second letter of the same comma also excludes anyone who primarily works for their current employer or those from the two years prior, which is unrelated to someone who left school before opening up their VAT number in 1992. Retirement income falls within this limit according to Article 49, comma 2, letter A, of the TUIR (DPR No. 917/1986). Circular Letter N. 10/E of the Italian Revenue Agency dated April 4, 2016 clarifies that retirement income takes precedence even on its own when it comes to the threshold. Clearly: an ex-teacher whose pension income compares with the annual gross amount will include both without other allowances. The forced regime applies after resignation but must be used the following year of cessation.

The amount of the roof depends on the duration of previous professional activity before the compulsory retirement period, but not on the duration of subsequent working activities. To avoid exceeding the limit set by law, former public servants should keep in mind that the employment relationship is irrelevant and that the resignation can be annulled if the taxpayer has received a pension during that year. This implies that the requirements for accessing the compulsory retirement scheme may vary depending on the duration of the preceding professional activity. FINISH SOURCES