Italy tax authority blocks public salaries and professional fees over unpaid tax debts

The Italian Treasury has introduced an automatic system that checks taxpayers’ debt status in real time before any public-sector salary or professional fee is transferred. If unpaid tax notices total €5,000 or more, the payment is frozen and redirected to the tax collector to settle the debt. The threshold for employees of public administrations is lower, at €2,500, meaning wage payments can be halted earlier and for smaller amounts. A sixty‑day grace period allows the debtor to pay the outstanding tax and release the funds.

The measure applies to all public‑sector workers, including civil servants and certain contracted staff, while scholars, coordinators and some scholarship recipients remain subject to the higher €5,000 limit. Specific exemptions cover reimbursed travel expenses and certain fiscal assistance payments.