Italian 2027 Finance Draft Law (subject to Parliamentary debate and approval) – Key Tax Measures: Increase of middle tax band upper threshhold | Flat-tax Regime Forfettario threshold adjustments | Flat tax regime for employment income extended | New Exit Tax for individuals | "Bonus Casa" - real estate restructing relief extended to 2027 | Vehicle Tax Exemptions | Flat tax (Cedolare Secca) extended to commercial lettings | Fixed Rents for Under 36's | Introduction of Sugar and Plastic Taxes postponed to 1 July 2027 | Tax Credits For Cloud Software | Special bank and energy sector levies

Legal Background

1.1 Key Legal Sources

Italy’s business law is rooted in the Civil Code (Codice Civile), which governs contracts, companies, and obligations. Supplementary laws include Legislative Decree No. 58/1998 (TUF) for financial markets, and EU regulations that apply directly or via transposition.

Primary Legislation

The establishment and operation of enterprises in Italy are primarily governed by:

  • Codice Civile (Civil Code) – Book V regulates company law, including formation, governance, and dissolution.
  • Testo Unico delle Imposte sui Redditi (TUIR) – Consolidated Income Tax Code, enacted by DPR 917/1986.
  • Testo Unico IVA (Consolidated VAT Code) – Previously based on DPR 633/1972, now based on Legislative Decree no. 10/2026  containing a new Consolidated VAT Code with general effect starting 1 January 2027 unifying fragmented VAT rules into a single code aligned with EU Directives.
  • Decreto del Presidente della Repubblica no. 600/1973 – Known as the Tax Management Act, it governs tax assessments, accounting obligations, and returns.
  • Decreto del Presidente della Repubblica no. 602/1973: Provisions on tax collection and enforcement
  • The Registration Tax Code (Testo Unico Imposte di Registro) enacted by Decreto del Presidente della Repubblica no 131/26 April 1986 containing rules on registration taxes, including real estate/business transfers.
  • D.Lgs. No. 346/1990 (Testo Unico delle Successioni e Donazioni), consolidated Inheritance and Gift Tax Code,  defining chargeable events/transfers, valuations, and exemptions (e.g., Article 1 on scope).

Key Related Laws:

Annual Finance Laws modify and update primary legislation. 

Legislative Decree No. 58/1998 (TUF) – Governs financial markets and listed companies.

Legislative Decree No. 231/2001 – Establishes corporate liability for criminal acts.

1.2 Regulatory Bodies

Key regulators include:

  • Chamber of Commerce – Company registration and filings
  • Tax Agency (Agenzia delle Entrate) – Tax compliance
  • CONSOB – Securities and listed company oversight
  • Bank of Italy – Financial institutions and AML enforcement
 

1.3 Legal System Overview

Italy follows a civil law system. Precedent is not binding, but higher court decisions (especially Cassazione) carry persuasive weight. EU law and international treaties are directly applicable and often override domestic provisions.

If you have any questions, feel free to contact us.

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