Italy Extends Tax Debt Moratorium to Regions and Local Authorities

The Italian government has broadened the "Rottamazione‑quinquies" scheme, allowing regions, provinces, municipalities and other local bodies to apply a five‑year tax‑debt settlement on charges delegated to the Agenzia delle Entrate‑Riscossione. The measure, introduced by decree‑law n. 38/2026 and converted into law n. 88/2026, covers all tax and non‑tax liabilities (e.g., IMU, TARI, vehicle tax, traffic fines) assigned to the national collection agency from 1 January 2000 to 31 December 2023, excluding amounts resulting from Court of Accounts convictions.

Each local entity must adopt a specific resolution, publish it on its website and send the accompanying model by certified e‑mail (PEC) to the agency by 30 June 2026. Once the authority’s declaration is received, taxpayers can apply for the settlement online between 16 September and 31 October 2026. The procedure aims to improve cash‑flow for local budgets and reduce the outstanding portfolio of over €1 trillion in non‑performing credits held by the collection agency.

The law also permits local administrations to create autonomous settlement regimes for revenues they manage directly or through private concessionaires, though these fall outside the national “Rottamazione‑quinquies” framework.