Italy has introduced emergency tax amendments through Decree-Law No. 38, which took effect on 28 March 2026, revising key provisions of the 2026 Budget Law. The changes include VAT clarifications, delayed import fees, expanded depreciation benefits, restored dividend exemptions, and new tax credits for energy-efficient investments.
Italy has gazetted Decree-Law No. 38 of 27 March 2026, effective from 28 March 2026, introducing several urgent tax measures that amend the 2026 Budget Law (Law No. 199 of 30 December 2025). It addresses multiple areas, including clarifications on VAT and import fees, enhanced investment incentives, and reforms to dividend and capital gains taxation.
The key provisions are:
Dividend and capital gains relief
Italy has repealed the minimum holding requirements for the 95% dividend and capital gains exemption, as well as the 1.2% reduced withholding tax on EU/EEA dividend payments. The previous thresholds—5% direct ownership or EUR 500,000 share value—are retroactively removed from 1 January 2026.
Companies acquiring distressed businesses can now spread negative goodwill taxation across five equal annual instalments instead of a single payment, provided they maintain the workforce and business structure. This provision applies to tax periods ending on or after 31 December 2024.
Enhanced investment incentives
The geographic restriction on increased depreciation benefits has been eliminated. Businesses can now claim enhanced depreciation on capital goods from any country, not just EU or EEA nations.
Furthermore, Decree-Law No. 38 establishes a tax credit for businesses that previously applied for Transition 5.0 incentives but missed out due to depleted funding. Eligible taxpayers will receive a credit worth 35% of their original request, along with reimbursement for certification expenses. The Energy Services Manager (GSE) will inform qualifying businesses of their credit allocation by 30 April 2026, and recipients must utilise the credit before 31 December 2026. This measure supports investments in energy-efficient smart equipment, machinery, and software.
VAT and import fee adjustments
The decree clarifies that new VAT rules for barter and payment-in-kind transactions apply only to contracts signed or renewed from 1 January 2026 onward. The VAT base is now calculated on the supplier’s total cost incurred. Additionally, Italy has delayed the EUR 2 administrative fee on imports valued below EUR 150 until 1 July 2026, giving the Customs Agency time to upgrade its IT infrastructure.
Earlier, on 12 March 2026, Italy’s Ministry of Economy and Finance announced upcoming legislative amendments to the 2026 Budget Law. The proposed changes included postponing a new import fee on low-value items, clarifying VAT rules for barter transactions, and broadening access to enhanced depreciation benefits.
