Allowance of 600 euros: eligible subjects and how to apply

Allowance of 600 euros: eligible subjects and how to apply

30 March 2020 |

In order to deal with the COVID-19 emergency, the Legislative Decree dated 18/2020 (known as “Cura Italia”) has provided the payment for the month of March, probably extendable to that of April, of an allowance of €600 , not to be included in the taxable income, to particular categories of subjects specifically identified in Articles 27, 28, 29, 30, 38 of the aforementioned Decree. This allowance shall be paid directly by INPS, which is also responsible for controlling the spending limit. The application can be made, by accessing the INPS portal, from April 1.

The taxpayers concerned by the provision are the following:

1. freelance professionals with an active VAT-number on February 23, 2020 and workers with coordinated and continuous collaboration relationships active on the same date, who are registered in the Separate Management, not pensioners and not enrolled in any other mandatory social security schemes;
2. self-employed workers registered in Ago’s (compulsory general insurance) special managements, not pensioner and not enrolled in other mandatory social security schemes, except for the Separate Management. In this regard, INPS, with message n.1288 of March 20, clarified that these taxpayers are:

• artisans;
• traders;
• direct farmers, settlers and share-croppers.

The MEF (Ministry for the Economy and Finance) also wanted to specify that sales agents as well as members of partnerships and of corporations registered with INPS also fall within this category. The allowance is personal and not attributable to the company; therefore it may be claimed, if the conditions are met, by all shareholders;

3. seasonal employees in the tourism sector and spas who involuntarily terminated their employment relationship in the period between January 1, 2019 and the date of entry into force of the Decree (17/03/2020), who are not pensioners and not employed on the date of entry into force of the Decree;
4. fixed-term agricultural workers, not pensioners, who have carried out at least 50 actual days of agricultural work in 2019;
5. workers enrolled in the Pension Fund for Entertainment Workers, with at least 30 daily contributions paid in the year 2019 to the same Fund, resulting in an income not exceeding €50.000, and not pensioners.

It should be noted that the allowances are not cumulative and are not granted to recipients of citizenship income.

With reference to how to apply for the allowance, INPS allows you to send specific applications by entering only the first part of the PIN, received via SMS or e-mail, after having requested it through the portal or Contact Center. Once received, it can be used immediately during the authentication phase to fill in and submit the application.

From April 1, 2020 to April 30, 2020, professionals and self-employed workers registered in private social security funds will also be able to receive the allowance by using the fund by art. 44 DL 18/2020. Income subsidy is granted to the following persons:

1. workers who received, in tax year 2018, a total income, gross of rents, of no more than €35.000, whose activity was limited by the restrictive measures issued due to COVID-19 epidemiological emergency;
2. workers who have received, in the tax year 2018, a total income, gross of rents, of between €35.000 and €50.000 and who have ceased or reduced or suspended their activities.

It is specified that:

• cessation of activity means the closure of the VAT number, in the period between February 23, 2020 and March 31, 2020;
• reduction or suspension of working activity means a proven reduction of at least 33% of income in the first quarter of 2020, compared to that in the first quarter of 2019. For this purpose, income is calculated according to the cash principle as the difference between income received and expenses incurred exercising the activity

Unlike the self-employed, parasubordinates and certain categories of subordinates registered with INPS, persons registered with private funds must apply directly to their own fund by submitting a self-certification in which it is certified that:

• you are a self-employed worker/freelance professional not pensioner;
• you are not already receiving other benefits related to Covid-19 emergency;
• you have not applied to another form of mandatory pension scheme for the same purpose;
• you comply with the income requirements listed above;

The private pension funds, after verifying the regularity of contributions, shall pay the allowance in the chronological order of the applications submitted.