Understanding the Ateco 2025 classification and its Impact on the Flat-Rate Tax Regime

The recent implementation of the Ateco 2025 classification by Istat, effective since April 1, 2025, necessitates a careful review by taxpayers operating under the flat-rate scheme (regime forfettario). While the buisness register has automatically updated activity codes, the ensuing tax implications demand close attention.

Exclusionary Factors: A Closer Look at Flat-Rate Ineligibility

A critical area of concern revolves around the Causes of exclusion from the flat-rate regime. These exclusions are often directly linked to the nature and coding of the business activity. One meaningful exclusion criterion pertains to individuals who directly or indirectly control limited liability companies (Srls) or hold participations in entities engaged in economic activities that are directly or indirectly attributable to their individual business operations.

Specifically, if an Srl, majority-owned by an individual under the flat-rate scheme, conducts activities connected to the individual’s business, this connection is now assessed based on the new ATECO 2025 codes. This assessment is crucial for determining continued eligibility for the flat-rate scheme.

Detailed breakdown of Exclusionary Scenarios

According to Law N° 190/2014, the following categories are ineligible for the flat-rate regime:

• Individuals utilizing special VAT regimes or flat-rate dismissal schemes.
• non-residents, except those residing in EU member states or countries within the European Economic Area that ensure adequate information exchange and generate at least 75% of their total income in Italy.
• Those primarily engaged in selling buildings, building land, or new means of transport.
• Self-employed individuals (businesses, arts, or professions) who together participate in partnerships, professional associations, or family businesses, or who directly or indirectly control limited liability companies or participation associations engaged in activities attributable to their individual work.

Additional Grounds for Exclusion

Further exclusions apply to:

• individuals whose activities are mainly conducted for employers with whom they have current or recent (within the previous two tax periods) employment relationships, or entities directly or indirectly linked to these employers. An exception exists for those starting a new activity after completing mandatory practice for arts or professions.
• Those who received employee or assimilated income exceeding €30,000 in the previous year (the limit was €30,500 in 2024). This exclusion does not apply if the employment relationship ceased in the previous year, provided no pension income or employee income from another employment relationship was received in the same year.

Focus on the SRL Control Exclusion

The core issue lies in the exclusion of those who control Srls or participate in associations that conduct economic activities directly or indirectly related to their individual activities. The Ateco 2025 codes play a pivotal role in determining this relatedness. In certain instances, taxpayers may need to rectify their ATECO 2025 codes to accurately reflect their business activities.

Circular No. 9/2019: A Guiding document

To fully grasp the implications of the new Ateco codes, it’s essential to revisit Circular No. 9/2019, which provides guidance on the flat-rate scheme. This circular emphasizes that the ATECO sections and codes declared by the taxpayer and the controlled Srl are not the only factors. The activities actually carried out are also considered.

Impact Scenarios: Maintaining or Losing Flat-Rate Eligibility

The following table outlines various scenarios and their effects on flat-rate eligibility:

Key Takeaway: compliance and Future Implications

These checks will be conducted based on the new ATECO 2025 codes. If a cause for exclusion arises in 2025, the taxpayer will be required to exit the flat-rate scheme for the 2026 tax period. Thus, a thorough review of business activities and corresponding ATECO codes is crucial for maintaining compliance and avoiding unexpected tax implications.