Each year, taxpayers find themselves paying different taxes to the state, the amount of which varies according to the declared income. One of the main ones certainly concerns the IRPEF, that is the tax on the income of individuals. There are different brackets that determine the amount of the tax rate and the weight that bears on each taxpayer. However, there are situations where the income calculation results in an exemption from payment. Not everyone knows that it is possible not to pay IRPEF 2021 if these incomes are declared to the Revenue Agency and now let’s see why.
Why is IRPEF paid?
The ProiezionidiBorsa editorial team illustrated many aspects of the personal income tax to the readers. A complete guide can be found in the article “What it is, what it is used for and how the IRPEF 2021 is calculated“. This type of tax that recurs every year is paid on the basis of brackets that establish different percentages between 23% and 43%. There are also such reduced income situations that they can benefit from an exemption without this resulting in fines or penalties of any kind. Perhaps not everyone knows that it is possible not to pay IRPEF 2021 if these incomes are declared to the Revenue Agency.
What does it mean when you re-enter the No Tax Area and what benefits you get
When we talk about the exemption from IRPEF payment we refer to the so-called No Tax Area. This is an important tax break that introduced the Law n. 289/2002. As the term itself indicates, it is a very low income bracket that excludes from the IRPEF calculation. How much must the taxpayer’s income amount to be considered exempt from paying the tax? The first income tax bracket imposes a rate of 23% for income ranging from 0 to 15,000 euros. However, in the case of income from employment within € 8,174 per year, it falls within the No Tax Area.
This means that the taxpayer does not owe any personal income tax for the specific tax year. In the case of retirees, the tax exemption is confirmed for those income up to € 8,125. On the other hand, for self-employed workers the limit threshold corresponds to 4,800 euros. Not everyone knows that it is possible not to pay IRPEF 2021 if you declare these incomes to the Revenue Agency. This data is very important for relieving individuals with particularly low incomes from a burdensome tax burden.
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