Italian 2026 Finance Law – Key Tax Measures: Reduced Tax Rate for Middle Incomes | Flat-tax/HNWI“new-resident” regime adjustments (for high net-worth individuals) | Incentives / “flat tax” regimes for employment income| Continued incentives for investments and capital goods (businesses) | Tax-collection and “fiscal-relief” measures: debt-collection amortization, freeze for property-transfer taxes | Tax treatment of dividends, capital gains, and financial income | Sectors/Special Taxes: financial intermediaries, “windfall” taxes, bank levy
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Audits and Auditors

12.1 Statutory Audit Requirements Italian companies are subject to statutory audit requirements based on their legal form and size. An audit is mandatory for: Audits must be performed by registered professionals or audit firms listed with MEF (Ministry of Economy and Finance). 12.2 Appointment and Independence Auditors are appointed by shareholders and must remain independent […]

Financial Crime

11.1 Anti-Money Laundering (AML) Italy enforces AML regulations under Legislative Decree No. 231/2007, aligned with EU directives. Obligated entities include banks, accountants, lawyers, and real estate agents. Key requirements include: The Financial Intelligence Unit (UIF) monitors compliance and investigates suspicious activity. 11.2 Anti-Corruption Measures Italy has strengthened anti-corruption laws through Legislative Decree No. 190/2012 and […]

Mergers & Acquisitions

10.1 Legal Framework M&A transactions in Italy are governed by the Civil Code, the Consolidated Financial Act (TUF), and EU regulations. Key authorities include: Cross-border deals may also trigger foreign investment screening under the Golden Power regime. 10.2 Deal Structures Common M&A structures include: Each structure has different tax, legal, and operational implications. Due diligence […]

Business Tax

9.1 Corporate Taxation Italian companies are subject to two main taxes: Taxable income is calculated according to Italian GAAP, with adjustments for non-deductible expenses and exemptions. Losses may be carried forward indefinitely, subject to limits. 9.2 VAT and Indirect Taxes Italy applies a standard VAT rate of 22%, with reduced rates (10%, 5%, 4%) for […]

Executive Performance and Compensation

7.1 Executive Roles and Titles Italian companies typically appoint executives such as: Amministratore Delegato (CEO) – Chief executive with delegated powers Direttore Generale – General manager overseeing operations Chief Financial Officer (CFO) – Responsible for financial strategy and reporting Board Chair (Presidente) – Leads board meetings and governance oversight.  Titles and roles vary by company […]

Accounting and Reporting

6.1 Accounting Standards Italian companies generally follow the Italian GAAP (OIC) for statutory reporting. Listed companies and large groups must use IFRS as adopted by the EU. The choice of standards depends on company type, size, and listing status. 6.2 Bookkeeping Requirements All companies must maintain accurate books, including: Journal (Libro giornale) Inventory book (Libro […]

Directors and Management

4.1 Appointment and Eligibility Directors are appointed by shareholders and must meet basic eligibility criteria: Be at least 18 years old Hold a valid Italian tax code (codice fiscale) Not be disqualified or bankrupt Additional requirements apply to directors of companies regulated such as certain financial sector entities. Foreign nationals may serve as directors, subject […]

Withholding Tax Rates Under Italy’s Double Taxation Agreements (DTAs)

Tax to be Withheld on Payments to Non Residents Italy has an extensive series of rules requiring Italian tax resident businesses and professionals to make withholding of tax on certain payments of various types of income,  both where the recipient is tax resident in Italy and non tax resident. Italy has an extensive network of […]

Italian Taxes for Corporations

An Overview of Italian Taxes Due By Corporate Bodies Carrying on Business in Italy Italian resident corporations and foreign companies operating in Italy through an Italian branch/permanent establishment, as well as a number of other entities that are treated as corporations  are subject to two principal forms of taxation: Imposta sul Reddito delle Società (IRES) […]

Italian Social Security Contributions

Introduction Working from Italian soil means, according to the default rules, that you are liable to make payment of Italian social security contributions, the bulk of which are, in general, contributions into the Italian state pension scheme. Different schemes apply to employees compared to the self employed.  The rates, thresholds, minimum contributions, if any will […]