New Penalty System for Contribution Violations From September 1st, modifications to the regulations on contribution violations will take effect, as amended by the Pnrr decree (Dl 19/24 converted by law 56/24). A new system allows for a form of voluntary compliance for those who pay due contributions within 120 days of the deadline. In such cases, the usual civil penalty, which is the official reference rate (Tur) plus 5.5 points, is reduced. The additional charge is waived, and only the Tur applies. For instance, with a Tur of 4.25%, the full civil penalty would be 9.75%, but the new reduced penalty is just 4.25%.

# Information Exchange Initiative Also starting September 1st, a new information exchange system between INPS and taxpayers will be trialed to ease compliance and encourage regularization. INPS will provide taxpayers and authorized intermediaries with relevant information and data to determine contribution obligations. This allows taxpayers to engage in a dialogue to clarify unclear facts or request changes from INPS. The implementation is governed by a resolution from the INPS board, subject to approval by the Ministry of Labor. The board is also responsible for setting deadlines for payment of due amounts. Regularization is subject to a penalty system, with civil penalties structured as follows: - Contribution omission: Tur annually (maximum 40% of unpaid contributions or premiums).

• Contribution evasion: Tur annually plus 5.5 points, with a maximum of 40% of unpaid contributions or premiums. If the taxpayer fails to regularize, INPS will issue a recovery notice applying a higher civil penalty: - Contribution omission: Tur annually plus 5.5 points (maximum 40% of unpaid contributions or premiums).

• Contribution evasion: 30% annually with a maximum of 60% of unpaid contributions or premiums. Taxpayers who have requested and obtained installment payments must pay the first installment and adhere to the payment plan to benefit from lighter penalties; otherwise, higher penalties apply.

  Parallel Assessment Process From September, a parallel assessment process will be introduced alongside traditional inspections, allowing for external assessments not conducted on company premises. This can include contributory liability related to the employment of workers under third-party contracts, regardless of their legitimacy, and other similar outsourcing situations that companies increasingly use.

  Further Insights

• Overview of contribution violation regulations

• Impact of new penalty systems on businesses

• Role of information exchange in compliance

  Potential Opportunities

• Enhanced compliance through voluntary payment incentives

• Improved taxpayer-INPS communication

• Streamlined assessment processes for outsourcing practices