Understanding Tax Returns Made Simple
We bet you have plenty of questions about how tax returns work for freelancers and self-employed individuals: we're here to answer them all.
A tax return is the tool through which taxpayers communicate their incomes – pertaining to the previous year in relation to the moment of declaration – to the Tax Administration, through either the Model 730 or the Individual Income Tax Return (formerly unique model), essentially depending on the type of income one possesses and the occupation one engages in.
If you're interested in delving deeper into the topic, check out the complete guide on tax returns on our blog.
Not everyone is required to file a tax return; exemptions include:
- those who did not earn any income (of any kind) in a given year,
- those who earn incomes exempt from taxation (such as disability pensions),
- in cases where taxes have already been correctly paid and withheld by the withholding agent.
Self-employed individuals are always required to file a tax return, even if they did not earn any income in the tax year in question.
Your annual tax return (Individual Income Tax Return) is included in your Xolo subscription plan, whether it's monthly or annual. The tax return included in the subscription pertains to the fiscal year following the year of registration.
However, if you cancel your subscription - monthly or annual - before twelve months from the moment of your registration, you won't be able to avail of this service.
Filing your tax return - Individual Income Tax Return - with Xolo is surprisingly easy. You just need to upload all your documents directly on the platform and let our experts handle the rest. Once your tax return is ready, it will be available in your reserved area along with pre-filled F24 forms for paying your taxes.
The deadline for filing the tax return is the last day of the eleventh month following the closing of the tax period: for instance, a taxpayer with a tax period coinciding with the calendar year must file the return by November 30 of the following year after the reference tax period.
With Xolo, you have access to a calendar with all the important tax deadlines in your reserved area, plus you can rely on emails and notifications to never miss anything!
The balance resulting from the Return and any first installment must be paid by June 30 of the year in which the return is filed, or within the following 30 days with a surcharge of 0.40%. The deadline for any second or single installment is instead November 30.
The installment is due if the tax declared in that year (referring, therefore, to the previous year) exceeds 51.65 euros. The installment amounts to 100% of the tax declared in the year and must be paid in one or two installments, depending on the amount:
- single payment, by November 30, if the installment is less than 257.52 euros;
- two installments if the installment is equal to or greater than 257.52 euros; the first being 40% due by June 30 (along with the balance), the second – the remaining 60% - by November 30.
The balance and the first installment can be paid in monthly installments (the November installment must be paid in a single installment). In any case, the installment payment must be completed by November.
To ensure the completion of the tax return by the first deadline of June 30, documents related to your real estate and tax situation must be uploaded to the platform (Real Estate tab and Tax Return tab) by no later than April 30 of each year.
Starting from this date, Xolo cannot be held responsible for any delays and penalties related to your Tax Return.
The penalty for late filing, i.e., within 90 days from the deadline, is a fixed amount of 250 euros and can in any case be reduced to 1/10, i.e., to 25 euros, through voluntary disclosure. Therefore, in the absence of taxes due, regularization entails payment of the penalty reduced to 25 euros.
In cases where the return reveals a tax debt, this amount will be added to the penalty and interest for late payment. Even in relation to these amounts, it is possible to regularize by voluntarily making the payment:
- of the tax due
- of the interest
- of the penalty at a reduced rate