Italian 2026 Finance Bill – Key Tax Measures: Support for Middle Incomes | Incentives / “flat tax” regimes for employment income| Continued incentives for investments and capital goods (businesses)| Flat-tax/HNWI“new-resident” regime adjustments (for high net-worth individuals) | 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

Tax Amnesty

As part of the recently installed Italian government’s somewhat controversial “amnesty programme” a number of ongoing Italian tax assessment, investigation and litigation proceedings can be settled at a discount. Also worthy of notice is the programme to enable taxpayers to present supplementary returns amending errors or omissions in returns filed up to 31 October 2017. A 20% substitute tax generally applies to the additional reported income/profits declared. This procedure may also be advantageous for taxpayers who have failed to disclose non-Italian assets in section RW of the return, permitting disclosure of assets with payment of a much smaller amount that would otherwise be due under the standard penalty regime.

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