Italy launches new Unified Tax Code, overhauling income tax rules

The Italian government approved Legislative Decree 117 on June 19 2026, creating a new Testo Unico delle Imposte sui Redditi that replaces the 1986 Tuir. Effective 1 January 2027, the code consolidates all income‑tax provisions into 377 articles divided into four parts covering general IRPEF/IRES rules, special regimes (including the forfettario scheme and cedolare secca), the global minimum tax, and deductions. Nine annexes set calculation parameters. Professionals, businesses and private taxpayers must update contracts, invoices and filing references or risk penalties.

In parallel, Legislative Decree 123/2025, applied from 2026, reforms taxation of financial assets. The annual stamp tax (imposta di bollo) on domestic holdings remains at 0.20% with a €34.20 fixed fee for accounts under €5 000 exemption, while the foreign‑asset tax (Ivafe) applies the same rate, doubling to 0.40% for assets in jurisdictions on the black‑list. Reporting shifts from the former “Quadro RW” to a new “Quadro W” in the personal income‑tax return, simplifying compliance for investors.