Italy’s Legislative Decree No. 147/2026 overhauls regional and local tax administration, introducing preventive compliance notices, simplified digital procedures, and greater local fiscal autonomy. The measures also simplify IMU reporting, promote waste recycling through TARI incentives, and establish a new revenue-sharing system for provinces and metropolitan cities from 2027.
The Italian Revenue Agency announced on 12 August 2026 that it published Legislative Decree No. 147/2026 in the Official Gazette No. 185 on 11 August 2026, which entered into force the same day.
Legislative Decree No. 147/2026 introduces specific measures on how local and regional authorities manage taxes. The decree restructures regional and local tax administration, shifts financial power to local governments, and introduces tools designed to make tax compliance easier and more transparent.
Compliance through transparency, not enforcement alone
Rather than tightening the screws on audits, the decree leans on prevention. Regions and local authorities now send preventive communications—basically flagging discrepancies before formal assessment, giving taxpayers space to self-correct.
Businesses get 60 days to respond, submit missing documentation, or pay what they owe at reduced penalty rates. The decree also allows friendly notices for late or incomplete payments, moving away from the hit-first approach that characterises much tax administration. Direct debit payments can qualify for rate reductions, incentivising electronic compliance.
All regional and local tax bodies must align with the Taxpayer’s Rights Charter and adopt the same collaborative models the national Tax Administration already uses: digital tools, information campaigns, consultancy support, and error-prevention measures.
Specific tax changes: IMU and waste
For IMU, the headline change is simplification through a single standardised electronic return form, usable across multiple years unless the tax code shifts significantly. Tari (the municipal waste tax) gets an environmental dimension: non-domestic users who manage waste outside the public system and can prove recycling or recovery are exempt from the quantity-based portion.
The switch between public and private waste management requires a minimum commitment of 2 years. Aerobic composting gets tariff reductions for agricultural, nursery, and domestic users.
Sanctions follow Legislative Decree no. 472/1997 for now. From 1 January 2027, the new Consolidated Law on Administrative and Criminal Tax Sanctions (Legislative Decree no. 173/2024) takes over.
Fiscal federalism begins in 2027
Starting in 2027, a revenue-sharing system kicks in for provinces and metropolitan cities across ordinary-statute regions, Sicily, and Sardinia—a structural shift toward genuine local financial autonomy.
