Italy’s Council of Ministers announced, on 3 July 2024, that it passed the Legislative Decree for reforming the tax collection system. It was passed after consultation with the relevant parliamentary commissions under Law No. 111 of 9 August 2023.
Under Law No. 111 of 9 August 2023, the Italian Parliament established a framework of principles and regulations enabling the government to execute a comprehensive overhaul of the Italian tax system (Enabling Law).
The Enabling Law took effect on 29 August, 2023. From that date, the Government will have roughly 24 months to implement the reform through one or more legislative decrees.
The Enabling Law aims to reduce the tax burden on both corporations and individuals, enhance legal certainty, minimise litigation, and improve relations between tax authorities and taxpayers.
It also seeks to attract foreign capital by aligning with OECD recommendations under the BEPS project and implementing Pillar Two GloBe rules, which went into effect on 1 January, 2024.
