The bill simplifies regulations, enhances transparency and fairness, revises the Taxpayer’s Bill of Rights, and clarifies the self-assessment process with added sanctions.
Italy’s Council of Ministers has preliminarily approved a Legislative Decree introducing additional provisions to the recent tax reform on 14 July 2025.
The bill aims to simplify regulations for individuals and businesses, promoting greater transparency and fairness. It also revises the Taxpayer’s Bill of Rights to enhance the assessment process and bolster protections for citizens. Notably, the mandatory self-assessment process now includes sanctions, providing clarity on a previously ambiguous aspect.
The decree addresses individual and corporate income taxation, international taxation, and registration tax. Additionally, the decree includes amendments to the codes on administrative and criminal tax penalties, minor taxes, the tax judicial system, and tax payments and collection.
The Legislative Decree introduces key tax measures, including:
- Aligning domestic Pillar Two rules with global guidance on deferred tax assets and the qualified domestic minimum top-up tax (QDMTT) safe harbour under Administrative Guidance on Article 9.1 of the Global Anti-Base Erosion Model Rules (Pillar Two).
- Amending penalties for late or omitted submission of the minimum tax report.
- Establishing a voluntary disclosure procedure for unpaid withholding taxes on investment income.
- Allowing recognition of non-material accounting errors for tax purposes only if corrected by the next financial year’s deadline and before audits or investigations begin.
- Revising the definition of “dependent family member” for individual income tax.
