C-20 ATECO Code Manufacture of Chemicals and Chemical Products
Division 20 covers the manufacture of chemical products: industrial gases, dyes and pigments, plastics in primary forms, fertilisers, paints and varnishes, soaps and detergents. These are genuine production activities, so anyone opening a VAT number under a code from this division is normally enrolled in the INPS Artigiani scheme. Under the flat-rate regime the profitability coefficient applied is 67%, typical of manufacturing processes, with a substitute tax of 15% (5% for the first five years of a new business).
- ATECO 2025 codes
- 20
- Flat-rate eligible
- 20 of 20
- Profitability coefficient
- 67%
- Prevalent INPS scheme
- Gestione Separata
20.11.00Manufacture of industrial gasesFlat-rate67%20.12.00Manufacture of dyes and pigmentsFlat-rate67%20.13.00Manufacture of other inorganic basic chemicalsFlat-rate67%20.14.00Manufacture of other organic basic chemicalsFlat-rate67%20.15.00Manufacture of fertilisers and nitrogen compoundsFlat-rate67%20.16.00Manufacture of plastics in primary formsFlat-rate67%20.17.00Manufacture of synthetic rubber in primary formsFlat-rate67%20.20.00Manufacture of pesticides, disinfectants and other agrochemical productsFlat-rate67%20.30.00Manufacture of paints, varnishes and similar coatings, printing ink and masticsFlat-rate67%20.41.10Manufacture of soap, detergents and surface-active preparationsFlat-rate67%20.41.20Manufacture of glycerol and other cleaning and polishing preparationsFlat-rate67%20.42.00Manufacture of perfumes and cosmeticsFlat-rate67%20.51.00Production of liquid biofuelsFlat-rate67%20.59.11Manufacture of matchesFlat-rate67%20.59.12Manufacture of explosive articlesFlat-rate67%20.59.20Manufacture of glues and adhesivesFlat-rate67%20.59.30Manufacture of essential oilsFlat-rate67%20.59.91Manufacture of inhalation liquids for electronic cigarettesFlat-rate67%20.59.99Manufacture of all other miscellaneous chemical products n.e.c.Flat-rate67%20.60.00Manufacture of man-made fibresFlat-rate67%
Frequently asked questions
Can chemical manufacturing fall under the flat-rate regime?
Yes, if annual revenue stays below €85,000 and the limits on payroll costs and other qualifying conditions are not exceeded. Since this is a production activity, taxable income is calculated by applying the 67% profitability coefficient to revenue, on which the substitute tax of 15% or 5% is then due. However, the real weight of costs should be considered: in an activity with substantial raw materials and equipment, the flat-rate regime may be less advantageous than the standard regime. You can compare both scenarios and calculate your taxes.
Which INPS scheme applies to an ATECO code 20 business?
For chemical manufacturing, enrolment is usually in the INPS Artigiani scheme, since this involves goods production. Fixed contributions on the minimum threshold are due — around €4,500 per year — plus a percentage on the portion of income above the minimum. Under the flat-rate regime it is possible to request a 35% reduction on social security contributions by submitting the appropriate application to INPS within the deadline.
Are special authorisations required to start a chemical business?
In many cases, yes. Beyond opening a VAT number and registering with the Companies Register, chemical production is subject to regulations on safety, the environment, storage of hazardous substances and REACH compliance. It is worth checking the specific requirements with the Chamber of Commerce and the municipality before starting, as some processes require authorisations or advance notifications.