On 6 February 2024, Italy’s Revenue Agency issued Circular No. 2/E, which provides clarification on the enforcement of Legislative Decree No. 216 of 30 December 2023 concerning personal income tax reform and other tax measures.
This includes:
The revised personal income tax brackets for the 2024 tax period are as follows:
- Income up to EUR 28,000 – taxed at 23%.
- Income over EUR 28,000 and up to EUR 50,000 – taxed at 35%.
- Income over EUR 50,000 – taxed at 43%.
- The tax-free threshold for employment income will increase to EUR 8,500 for the 2024 tax period.
The main tax provision unrelated to personal income tax involves eliminating the corporate equity allowance (notional interest) deduction for tax periods starting after 31 December 2023.
