How does the Flat-Rate Scheme work?

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you must communicate to the Revenue Agency, within the AA9/12 form, your participation in the Flat-Rate Scheme. To do so, you must enter the value “2” within the “Favoured Tax Regimes” section, in box B;
you must communicate to INPS your membership in the Flat-Rate Regime and request a 35% discount on contributions for those who join the Traders or Artisans Management (to simplify the “fixed” INPS).
To make this communication, you must submit a specific online application through the holder's social security drawer, directly (by accessing the reserved area with SPID, CIE or CNS) or through an authorised delegated professional.

The Flat-Rate Regime works in a particular way: the taxable income (i.e. the basis on which we calculate taxes and contributions) is calculated automatically by applying a profitability coefficient directly to the greece email list revenue collected. This means that no costs can be deducted (“written off”), with the sole exception of social security contributions.

Once we have obtained the Taxable Income we will then have to apply the 15% rate (which becomes 5% in the presence of the StartUp Bonus) to define how much we have to pay in taxes.

Does it seem too complex? Keep reading and you will understand better!

Profitability Coefficients of the Flat-Rate Scheme
Profitability Coefficients indicate the portion of the collected turnover to be considered as Taxable Income, that is, on which to calculate the tax. This coefficient is established on a statistical basis and, in fact, defines the costs that the company automatically deducts, regardless of the accounting reality (“a flat rate”, in technical language, hence the term “Forfettario”).