Make advance payments to avoid penalties?
Not mandatory, but recommended. Whether you’re a sole proprietorship or a partnership, VAs are not mandatory. However, if the tax due is not sufficiently covered by VA, a penalty of 9% will be applied for the year 2024 (fiscal 2025). This penalty is the same for companies and the self-employed.
Exception for start-ups. Small companies, such as SRLs for young doctors, and self-employed people setting up for the first time in their main profession are exempt from this penalty for their first three years of business.
Penalty in 2024
A single rate of 9%. Unlike previous years, when rates varied, the penalty for insufficient VA will be 9% for all in 2024.
Why do VA early?
Better tax benefits. The earlier you perform your VA, the lower the surcharge. The four due dates are the 10th following the quarter and the 20th for the last month of the year. For a fiscal year ending on 12/31, here are the deadlines:
- April 10 (12% discount),
- July 10 (10%),
- October 10 (8%),
- December 20 (6%).
Borrowing to build VA?
Deductible interest. Borrowing to carry out IL can be advantageous, as the interest is tax-deductible, unlike the tax penalty. Be sure to compare the rates offered by banks to choose the best option.