Italy announces tax reform and upcoming Tax Code

Maurizio Leo, the Deputy Minister of Economy and Finance, announced that a new Tax Code is expected to be presented to the Council of Ministers by October. This follows the implementation of consolidated texts which serve as a fundamental step in the broader fiscal reform.

The reform is supported by four billion euros in funding and encompasses over 400 regulatory interventions organized into eight consolidated texts. These measures aim to unify income tax regulations, including special and flat-rate regimes. To assist the transition, the Department of Finance will develop a digital program to automatically link old regulatory references to new provisions.

Technology plays a central role in the administration, utilizing vast datasets from pre-filled tax returns, ISA data, and electronic invoicing. Additionally, the government is focusing on improving the relationship between the tax authorities and taxpayers. Recent data shows a 17% decrease in tax appeals during the first half of 2026. Key tools to support this include biennial preventive agreements, reduced assessment terms, and a 70% reduction in certain sanctions to support businesses and professionals.