| Reckoner for calculating difference between 7% flat tax regime and normal regime where tax is also due outside Italy | |||
|---|---|---|---|
| Tax on 7% Regime | |||
| Taxable Income | |||
| Foreign Tax % | |||
| Tax due on 7% Regime | 7% | ||
| Total Tax | |||
| Effective Rate of Tax | |||
| Tax on Normal Regime | |||
| Italian Tax % | |||
| Less Credit For Foreign Tax | |||
| Italian Tax Due | |||
| Total Tax | |||
| Effective Rate of Tax | |||
Italian 2026 Finance Bill – Key Tax Measures: Support for Middle and Low Incomes | Revision of IRPEF tax brackets | Abolition of reduced 21% rate on short term lettings | Baby bonus | Enhanced parental leave and nursery bonus | Social security exemption for working mothers | Increased deductions for private school expenses | Family endowment fund | First home mortgage guarantee fund | Support for food purchases | Energy-efficient appliance bonus | Cap on deductions for incomes over €75,000 | Exceptions for healthcare, mortgages, and startup investments | End of deductions for children over 30 (except disabled children) | “Hire more, pay less” tax deduction for new permanent hires | Reduced tax on productivity bonuses | Fringe benefit exemptions | Relocation support for new hires | Raised flat tax threshold for employees and pensioners | Reduced corporate tax (IRES) for reinvested profits | Tax credits for southern Italy investments | Enhanced “Nuova Sabatini” machinery financing | Support for SME stock market listings | Increased public investment in defense, infrastructure, and healthcare | Banking and Insurance | Deferred deductions for financial sector losses | Annual stamp duty on life insurance contracts