Changes to green receipts and sole proprietors
Social Contributions
The flexibility announced for companies also applies to self-employed workers, according to the indications given by the Ministry of Finance. In the months of March, April and May, freelancers will be able to deduct on only one third of income. The remainder can then be paid in instalments (three or six months) during the second half of the year. Once again, it is unclear under what access conditions are foreseen, which, at the outset, assumed a 20% reduction in turnover, and is also applied to companies with up to 50 workers.
In addition to this situation, Social Security support for workers when there is a proven stop in the activity of their own or their sector (up to €438.81 monthly, in a renewable measure for up to six months) will also see social contributions postponed to 100% while they are enjoying support.

There is also provision for the option of instalment plans for the delivery of VAT and of withholding taxes of three or six months (at the beginning, with interest on arrears in the last three months if the option is the second), during the months of April, May and June.
The criteria announced on Wednesday provided, without detailing different conditions for these workers, access to those with a turnover of less than €10 million or a 20% drop in turnover from that amount.
Changes for employees
For now, there are no significant changes in the payment of taxes or social contributions with an impact on the obligations, and on disposable income, of employees.
From the outset, the deadlines for submitting the IRS declaration are maintained as of April 1, and if there is payment in instalments of the withholding tax on salaries, these will be changed only with an impact on the companies’ treasuries (without change in the net salary, on departure).
There is also no provision for reducing or postponing the payment of social contributions due by workers (11%). Although the matter was not clarified, the government announced that the changes are aimed at “improving the liquidity of companies” and not that of families.
However, in some cases, there may be an impact on net wages for workers who see reduced gross wages (due to lay-offs or having stayed at home accompanying minors with schools closed, seeing their wages drop to two-thirds). With half of the national workers earning below €855 (February figures), many may end up with IRS exempt earnings during this period. According to the 2020 withholding tax tables, in the case of a couple with two children, income up to €686 is exempt. Singles without children are exempt up to €659 of gross monthly remuneration.

Dennis Swing Greene is Chairman and International Fiscal Consultant for euroFINESCO s.a.