Italy’s 2025 budget draft will be introducing several tax measures to reduce the tax burden for employees and pensioners. The Council of Ministers approved the draft Budget Law for 2025 during its meeting on Tuesday, 15 October 2024.
These measures include maintaining the three progressive individual income tax rates from Legislative Decree No. 216/2023.
The 2025 draft budget also introduces a solidarity contribution for the banking and insurance sectors that involves an advance on deferred tax assets and stock options.
Italy’s Deputy Minister for the Economy, Maurizio Leo, in a press conference on 16 October 2024, also announced that the thresholds for Italy’s 3% digital services tax (DST) would be removed, which was introduced on 1 January 2020.
The DST applies to resident and non-resident service providers generating revenues of at least EUR 750 million and at least EUR 5.5 million from digital services in Italy. If the thresholds are eliminated, all digital service providers in Italy will come under the scope of DST.
