The Stability Law of Italy for 2016 was published in the Official Gazette No. 302 the measures of which are applicable from 1 January 2016.

The depreciable base of certain plants, machinery and equipment, purchased between 15 October 2015 and 31 December 2016 and whose depreciation rates are not lower than 6.5%, is equal to 140% of the acquisition cost. A reduced amortization period of 5 (previously, 10) years applies to trademarks and goodwill stepped-up for tax purposes following certain corporate reorganizations carried out from the tax year following the tax year ongoing on 31 December 2015. With effect from the tax year following the tax year ongoing on 31 December 2016, the corporate income tax rate will be decreased from 27.5% to 24%. With effect from the tax year following the tax year ongoing on 31 December 2016, qualifying banks and financial institutions will be subject to a surtax of 3.5% and the reduced withholding tax levied on dividends paid out to a company resident and subject to corporate income tax in another EU Member State or EEA Member State that allows an adequate exchange of information with Italy will be decreased from 1.375% to 1.20%.

As regard to the individual tax, the maximum credit for pension income is EUR 1,783 for income not exceeding EUR 7,750. For income between EUR 7,750 and EUR 15,000. An additional credit, equal to 50% of documented expenses (up to a maximum amount of EUR 16,000) incurred, between 1 January 2016 and 31 December 2016, for the purchase of furniture linked to the purchase of an immovable property to be used as a principal dwelling, is granted to qualifying young couples.