Every year, taxpayers find themselves paying different taxes to the state, the amount of which varies according to the declared income. One of the most important ones is definitely related to the IRPEF, which is the individual income tax. There are various parentheses that define how much tax rate and weight each taxpayer bears. However, there are instances when the income account results in an exemption from payment. Not everyone knows that IRPEF 2021 could not be paid if these earnings were announced to the revenue agency. Now let’s see why.
Why is IRPEF paid?
The ProiezionidiBorsa Editorial Team has explained many aspects of personal income tax to readers. A complete guide can be found in the article “What it is, why it is used and how the IRPEF 2021 is calculatedThis type of tax that is repeated each year is paid on the basis of segments setting different rates between 23% and 43%. There are also low income cases in which they can benefit from the exemption without this leading to fines or penalties of any kind. He may not know. Everyone believes that IRPEF 2021 could not be paid if these earnings were announced to the revenue agency.
What does it mean when you re-enter a “no tax” zone and what benefits do you get?
When we talk about IRPEF payment waiver, we are referring to a so-called no-tax zone. This is an important tax credit introduced Law 289/2002. As the term itself indicates, the very low income bracket is excluded from the IRPEF account. How much of a taxpayer’s income should be considered exempt from paying tax? The first income tax bracket imposes a rate of 23% on income ranging from 0 to 15,000 euros. However, in the case of income from work in the range of 8,174 euros per year, it falls within the tax exclusion zone.
This means that the taxpayer owes no personal income tax for the given tax year. In the case of retirees, tax exemption is confirmed for that income up to 8,125 euros. On the other hand, for the self-employed, the maximum is 4,800 euros. Not everyone knows that the IRPEF 2021 could not be paid if you declare these earnings to the revenue agency. This data is very important to relieve particularly low-income individuals from the onerous tax burden.