Italy's 2026 Tax Debt Guidance Highlights New Payment Plans and Risks

The Italian Revenue Agency’s Circular 5/E issued on 16 July 2026 sets out detailed procedures for the negotiated composition of tax debts. It instructs accountants to verify the taxpayer’s position, reconstruct the fiscal situation, prepare required documentation, and manage partial VAT payments while avoiding common errors that could jeopardise the agreement.

The same year, the budget law introduced several relief tools for indebted taxpayers. Debt can be spread over up to 120 monthly installments under the ordinary rateisation scheme, and the new “Rottamazione‑quinquies” programme offers discounts on penalties and interest for obligations dated between 2000 and 2023. The guidance also stresses the importance of reading tax notices promptly to prevent enforcement actions such as vehicle seizures, mortgage liens, or wage garnishments.