While we discuss the future of building bonuses, fearing a period of ‘rigour’ that will bring lowered percentages, we will no longer conceive of the mechanisms of credit transfer and invoice discount and, for the benefits expiring on 31 December 2024 (especially Ecobonus and Sismabonus, but also Green Bonus), will provide new rules yet to be defined, the only two bonuses that currently know they will survive to the end of the year are the Building Renovation Bonus and the Architectural Barriers Bonus.
50% Renovation Bonus until 31 December 2024: what it is
Today we focus on payment methods and the documents to be kept to receive the Renovation Bonus at 50%, remembering that this rate is ‘valid’ only until 31 December 2024
In fact, the Building Renovation Bonus (facilitation for recovery interventions on the building heritage), governed by Article 16-bis of Presidential Decree 917/86 (Consolidated Law on Income Taxes – TUIR), consists of a deduction from the IRPEF ‘when fully operational’ (i.e. without expiry), to be divided into 10 annual installments of the same amount, of 36% of the expenses incurred, up to a total amount not exceeding 48,000 euros for each real estate unit.
But at the moment, by virtue of the special regime lastly extended by the 2022 Budget Law, for expenses incurred up to 31 December 2024, the benefit is raised to 50% and the maximum spending limit is raised to 96,000 euros per real estate unit.
Then, from 1 January 2025, we will return – unless further extended – to 36% with a maximum ceiling of 48 thousand euros
50% Renovation Bonus 2024: who gets it, for which interventions, deadline, maximum ceiling
By virtue of the special regime lastly extended by the 2022 Budget Law, for expenses relating to the recovery interventions of the building heritage, incurred until 31 December 2024, the Building Renovation Bonus is raised to 50% and the maximum spending limit is raised at 96,000 euros per real estate unit.
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Building renovation bonus: how to pay
As specified by the official Revenue Agency guide on the Renovation Bonus, to obtain the tax deduction, payments must be made via bank or postal transfereven online.
The bank transfer must include a reason that refers to the rule (article 16-bis of Presidential Decree no. 917/1986), in addition to tax code of the beneficiary of the deduction and the tax code or VAT number of the payer.
Expenses not payable by bank transfer, such as urbanization charges or stamp duty, can be paid by other means of payment.
When multiple subjects share the expense and everyone wants to take advantage of the deduction, the bank transfer must report the tax codes of all interested persons.
For interventions on common areas of the condominiumin addition to the condominium tax code, is necessary indicate that of the administrator or another condominium owner who makes the payment.
If the transfer is issued by a person other than the beneficiary indicated in the payment order, and all other conditions are met, the deduction must be requested by the latter (in accordance with the Revenue Agency circular no. 17/E of 24 April 2015).
Withholding tax on bank transfers: increase to 11% since March 1st
When paying the transfer, banks and Poste Italiane Spa must operate a withholding tax of 11%as an advance on the income tax due by the company carrying out the work.
The withholding tax, which until 1 March 2024 was 8%, has since that date risen to 11% for transfers of all building bonuses, by virtue of the entry into force of the amendment made by art. 1 paragraph 88 of the 2024 Budget Law (law 213/2023) to article 25 of legislative decree 78/2010, which has precisely ‘raised’ the rate of withholding tax as advance income tax payable by beneficiaries from 8% to 11%with the obligation to repay, upon crediting the payments relating to the transfers arranged by taxpayers to benefit from deductible expenses or for which the tax deduction is due.
There withholding tax goes to ‘remove’ liquidity from the companies that receive the transferas they collect a sum deducted from the withholding tax itself.
Expenses paid with financing
If the works were financed by a finance company, the taxpayer can still request the subsidy, as long as the company makes the payment to the executing company via bank or postal transferproviding all the details required by law.
Furthermore, the taxpayer must be in possession of the receipt of the transfer made by the financial company to the service provider.
The year in which the expense for the deduction is incurred will be the one in which the transfer is made by the finance company.
Documents to keep
Taxpayers who benefit from the Building Renovation Bonus must store and display, at the request of the officesthe documents specified in the provision of the Director of the Revenue Agency of 2 November 2011.
These include the bank transfer receipt and invoices or tax receipts relating to the expenses incurred for the renovation works. This documentation, registered in the name of the beneficiaries of the deduction, may be requested by the financial offices during checks of tax returns.
For interventions on the common areas of the condominium, the taxpayer can use a certification issued by the condominium administrator, certifying compliance with the obligations and specifying the deductible amount.
Furthermore, the taxpayer must possess:
- stacking applicationif the property is not yet registered;
- IMU payment receiptsif applicable;
- meeting resolution approving the works And thousandth table of expense distributionfor condominium interventions;
- declaration of consent to the execution of the works by the owner of the propertyif different from the cohabitants;
- administrative authorizations required by current building regulations (concessions, authorisations, etc.) or, in the absence of these requirements, a declaration in lieu of the affidavit certifying the start date of the works and their eligibility for the subsidy.
Tags: Renovation Bonus payment bank postal transfer documents Articles
