617. 19.
BUSINESS INCOMES

618. It’s necessary to award the (statutory) entrepreneur
19.1 The notion of business income
It’s an entrepreneur who professionally exercises an economic activity organized in order to produce or exchange goods or services
Art. 2082
Civil code
professionaly
organization
economically
It’s necessary to award the (statutory) entrepreneur
conduct activities with economical method
cover costs with revenues, potential profitability
potential production of new wealth
You need a certain level of hetero-organization, without which it borders on self-employment
Program
Single act
Activity

619. Exercise of commercial companies For usual occupation
Even non-exclusive
Although not organized in corporate form
Business income
(art. 55 T.U. 917/1986)
Activities (pursuant to art of the Civil Code):
industrial direct to the production of goods or services;
intermediary in the movement of goods;
of transport by land, water and air;
banking and insurance;
auxiliary to the preceding
agricultural activities that exceed the limits
(Art. 32, c.2, T.U. 917/1986)
organized activities to provide services not included in Art cc
In any case exploitation of mines, quarries, peat bogs, salt marshes, lakes, ponds, inland waters

620. Exercise for usual occupation
In the absence, other income (occasional income
Requirement of habitualness
stability
repetitiveness
the time period can be as a long or short-term but in any case determinable
Temporal continuaty
It produces business income even a single deal as long as important economically and consists of several operating steps (ex breakwater)
seasonal businesses

621. Even non-exclusive
Generates business income also the activities carried out simultaneously with other non-trade activities.
Exception in the case of a trade company
Except to the individual entrepreneur, in which case it is necessary that the gain results from the exercise of the company.

622. Irrelevance of the organization in the form of enterprise
Contrary to the requirements in the field of civil law
It detects only the activity pursued
irrelevant qualification of the subject and the organization's existence
Relevance of the activities fixed by art cc

623. personal physical and intellectual energies, for example. photographer
In particular,
services
personal physical and intellectual energies, for example. photographer
Hetero-organization, eg. hotel services
Production of services
Provision of services
not included in Art cc
Even if not organized
Only if organized
Not organized
Business income
Self employment income
Othe incomes (if occasional)

624. 19.2 The notion of agricoltural business
Agricoltural entrepeneur (art c.c.)
Who excercises the following activities:
Cultivation of the land
Forestry
Fosterage
related activities
Agricoltural and land income
(art. 32 T.U. 917/1986)
handling
storage
transformation
marketing
promotion of products obtained mainly from the cultivation
Fosterage within certain limits
concept of the prevalence
Exceeding the limits
Production of a business income

625. 19.3 The taxation of income produced in a associative form
Companies
Non commercial entities
Irpef
Ires
S.n.c.
S.a.s.
società di fatto
Società di armamento
public and private entities, with or without legal personality, other than companies
ecclesiastical institutions
foundations
cultural, sports, political, labor
trusts
Ires
S.p.a.
S.a.p.a.
S.r.l.
S.coop.
Società mutua assicurazione
optional regimes:
partnerships may opt for separate taxation
corporations may opt for transparency
In general, the above classification is linked to the legal form of the subject, remaining irrelevant activity exercised
However, there are cases of overcoming the formal constraint, watching the actual conduct of the activities carried on, finding inspiration from the principle of neutrality of the forms

626. Partnerships (s.n.c., s.a.s.)
commercial, residents
Non Irpef subjects
Shall be assimilated:
de facto companies
professional associations
shipping company
simple societies
Principle of transparency:
The company's income is allocated to shareholders
regardless of the distribution
in proportion to the share profit
Principle of attraction in the business income (art. 6, c.3, T.U. 917/1986): every income must be considered as a business income
Principle of identification between the company and shareholders

627. Losses are transfered to the stakeholders
Partnership
Formal obligations
Business income
If the share holder is a person there is a business income and non a capital income
Losses are transfered to the stakeholders

628. Non taxable incomes (art. 91)
Positive components of business income
Positive components
Revenues
(art. 85 T.U. 917/1986)
Gains
(artt T.U. 917/1986)
Dividends,
Interest
(artt T.U. 917/1986)
Contingent incomes
(art.88)
Non taxable incomes (art. 91)

629. 19.4.1. Revenues Revenues (artt. 57, 85 T.U. 917/1986) Sales prices
Commodity goods, ie goods and provision of services to the whose production and exchange the business is adressed
Of company shares, bonds and other securities:
not classified as financial assets
even when the goods are not commodities goods
not subject to the participation exemption regime.
Non-operating assets, purchased or produced to be used in production
compensation for damages for the loss or damage of goods which originate revenues (those indicated by the letter. a) to the letter. e) art. 85 T.U.
Contributions resulting from contract or for operating expenses under Law
closure case:
Revenues from goods (normal value) not destined for business purposes or transferred to shareholders
For individual entrepreneurs, those for personal consumption or family (art. 57 T.U. 917/1986)

630. The different relationship of positive components with the activities and the program
Revenues
Gains
Contingent incomes
Sale of goods related to the core business
Sale of instrumental and capital goods
extraordinariness
event occurred after the closing of the balance sheet
connecting link with the positive or negative component recorded as received

631. Contributions/grants
Payable in respect of the contract
For operating expenses based on rule of law
Capital
revenues
Contingent assets
Investment for future activities

632. Payable in respect of the contract
(art. 85, lett. g T.U. 917/1986)
The release is part of an obligation on the undertaking for the realization of its program
incomes
Participation in company costs in respect of an asset
Other than contributions or donations (contingent assets)
Different from the revenues produced by the core business activity
Accrual based accounting principle

633. Contributions/Grants related to income
(art. 85, lett. h T.U. 917/1986)
Recovering the business activity costs
Economic support for the company (ie. contributions to the agricultural sector; sectors with administered prices)
They represent revenues
Mere grant nature
Accrual based accounting principle

634. The compensation for damages and different relationship with the activities and the program
Allowances resulting from damage to property related to the enterprise
(artt. 85 e 86 T.U. 917/1986)
Equivalent to revenues
Even if there is non exchange

635. Personal or family consume
(artt. 58, 85 e 86 del T.U. 917/1986)
Treated as income or gains
It interrupts the previous and planned functional use of company assets
Definitive change of relationship from the business to the personal sphere

636. The assumption is not the consumer but the connection of the effects of the consumption to no business purpose, the absence of remuneration of production factors
The goods are used for personal purposes and not for entrepreneurial activity.

637. Assignement of assets to members
Income relevance (artt. 85 e 86 T.U. 917/1986)
Miss continuation of an entrepreneurial relation
Antiavoidance reasons

638. Financial fixed assets
Business capital gains
Capital gains arising from the sale or transfert of assets other than those that produce revenues
Depreciable assets
Business assets
Financial fixed assets

639. The participation exemption
Financial capital gains:
from the sale of shares or shares in companies (of any type) or entities;
from similar financial instruments
Art. 87 T.U. 917/1986
Non taxable for 95% , taxable for the 5% (PEX)
To prevent unfair tax competition intra UE or with tax heavens
Subjectives conditions
12 months holding period
Effective business activity carried on by the participate company
Residence not in a tax heaven
Recording in the first balance sheet under financial assets

640. 19.4.3. Contingent incomes (Art. 88 T.U. 917/1986)
extraordinary income having a causal connection with administrative events recognized in prior years
heterogeneous situations and correctional facility
The tax autonomy of the obligation has to bend so the temporal dynamics of economic reality regarding subsequent events raised, in tax years other than those in which revenues and costs have been charged and amending the entity of the latte

641. Proper contingent incomes
increments that can be traced back to the operational performance of the company with rectifying function
income and revenues against expenses, losses or charges deducted or liabilities recorded in prior years
Supervening inexistence of expenses, losses or charges deducted or liabilities recognized in the financial statements in prior years
revenues or other income received for amounts exceeding what has contributed to income in prior years

642. Improper contingent incomes
compensation for damages for harm other than those referred to income and capital gains
grants and donations
Not considered contingent assets since it is essentially:
alternative ways of capital transactions
compensation of a state deficit or the company's financial empowerment;
Payments in cash or in kind made to lost or capital fund by its members to companies and commercial entities subject to IRES;
renunciation of shareholders to the credits
reduction of the debts during the bankruptcy agreement or estimate

643. 19.4.4. Dividends and interest (art.89)
(art. 89 T.U. 917/1986)
Transparency taxation for partnerships
Application for corporations

644. Taxpayer subject to Irpef not entrepeneur (art. 47 T.U. 917/1986)
Taxability in the hands of the income producer with irrelevance of the next steps of the income distribution
Taxpayer subject to Irpef not entrepeneur (art. 47 T.U. 917/1986)
Taxpayer subject to Irpef entrepeneur (art. 59 T.U. 917/1986)
Taxpayer subject to Ires as a company (art. 89 T.U. 917/1986)

645. Taxpayer subject to Irpef not entrepeneur (art. 47 T.U. 917/1986)
non-qualified investments, ie
<2% or 20% of the voting rights or <5 or 25% of the share capital.
Qualifying holdings, ie
2% or 20% of the voting rights or> 5 or 25% of the share capital
Dividends are taxed for 49.72% of the amount received by
requirement for inclusion in the tax return
. Dividends are taxed necessarily withholding tax (12.5%) as
imposed, without prior inclusion in the tax return.

646. Taxpayer subject to Irpef entrepeneur (art. 59 T.U. 917/1986)
The tax is equal to 49.72% of the dividend distributed

647. Taxpayer subject to Ires as a company (art. 89 T.U. 917/1986)
Taxation is always equal to 5% of the dividend distributed
It does not detect the type of participation or its location in the financial statements
Deductibility of costs and expenses
related to the management of the investment and the dividend
(art. 109 c. 5 T.U. 917/1986)

648. A component of the income for the amount accrued in the exercise
Interests
A component of the income for the amount accrued in the exercise
If there is no written agreement, it is assumed at the legal rate

649. 19.5. Negative components of business income
Production of
Positive
components
Deduction
Negative
components
Income
Tax
liability
Principles
Requirments
Existence
Accounting competence
Inherence
Correlation
revenues and
costs
determined
or determinable
ammount

650. allocation to the income statement
Exceptions
Allocated in I.S of
previous year
(Deferred deduction
by obligation / right
Not allocable but deductable by law
Not allocated but resultant by certain elements
and precise, and specifically
related revenues