Agenzia delle Entrate issues guidelines for 2026-2027 tax agreement

The Italian Revenue Agency (Agenzia delle Entrate) has released Circular No. 8/E to provide guidance on the biennial preventive tax agreement (Concordato preventivo biennale) for the 2026-2027 period. This measure allows eligible entrepreneurs and professionals to agree in advance on the taxable income used to calculate taxes for the next two years, offering increased certainty for fiscal planning.

Key updates for the 2026-2027 biennium include new limits on proposals based on ISA (Synthetic Indices of Tax Reliability) scores. For instance, proposals cannot exceed certain percentages of the previously declared income depending on the ISA score: 10% for a score of 10, 15% for scores between 9 and 10, 25% for scores between 8 and 9, and 30% for scores between 6 and 8.

The deadline for formalizing the choice is November 2, 2026. While the agreement provides stability, it carries the risk that if actual business performance falls below the agreed-upon income, the taxpayer may end up paying taxes on a higher amount than what was actually earned. VAT regulations and standard accounting obligations remain unchanged.