Italy approves sweeping tax reform with four‑year shield for self‑employed

The Italian Council of Ministers gave final approval to the omnibus fiscal decree that completes the multi‑year tax reform. The measure creates a four‑year tax shield (2020‑2023) for VAT‑registered self‑employed who renew the biennial preventive agreement, offering reduced flat rates that vary with the taxpayer’s reliability index (10 % for high scores, 12 % for medium, 15 % for low) and a 30 % discount on taxes for the 2020‑21 pandemic years. It also extends the special settlement deadline, allows corrective filings, and introduces loyalty premiums for early renewal.

The National Council of Accountants and Tax Advisors welcomed the decree, noting that many of their proposals were incorporated, such as extending the Tax Control Framework filing deadline to 31 December 2026, shortening assessment periods, and simplifying the renewal of the preventive agreement. Deputy Guerino Testa of Fratelli d’Italia described the reform as “historic,” emphasizing its shift from a punitive to a preventive compliance model and its potential to make Italy’s tax system more competitive internationally.