Summary
“Automated” tax relief even without catastrophe policy
The failure of companies to comply with the obligation to take out policies against catastrophic risks, as provided for by Article 1, paragraphs 101-111, of Law No. 213 of 30 December 2023 (Budget Law 2024), does not preclude access to the relevant “automated” tax and contribution incentives.
This provision was introduced by Legislative Decree No. 184 of 27 November 2025 (the so-called “Incentives Code”), published in the Official Gazette No. 286 of Dec 10th.
Traceability of travel expenses
Assonime Circular No. 26/2025 (§ 2) analyses the deductibility of business travel and entertainment expenses, with a focus on the traceability obligation.
Foreign Representation Expenses and Regulatory Reform
Assonime notes the excessive extension of the traceability obligation also to entertainment expenses incurred abroad, calling for a legislative intervention to limit this obligation only to expenses in Italy.
Travel Reimbursements to Self-Employed and New Location
For travel expenses reimbursed to the self-employed, Law Decree 84/2025 transferred the obligation of traceability (for board, lodging, travel/transportation) from Article 95 co. 3-bis to Article 109 co. 5-ter of the TUIR, making deductibility conditional on traceable payment. There is a doubt as to the effective date that requires official clarification.
Definition of Traceable Instruments
Traceable means of payment include, in addition to traditional banking and postal means, debit/credit/prepaid cards and electronic money instruments (e.g. Satispay, Paypal) as long as they guarantee the identification of the author. Proof of payment can be provided by means of bank statements or digital receipts, and a note on the invoice is desirable.
VAT advance payment 2025
The VAT advance payment is an obligation for all VAT taxable persons required to make periodic settlements (monthly or quarterly), regardless of their periodicity.
The ordinary deadline for the payment of the VAT advance is 27 December. For the year 2025, the deadline is postponed to 29 December 2025 (first working day thereafter).
Calculation Methods:
There are three methods for determining the amount to be paid (equal to 88% of the VAT):
- Historical method: Calculated on the VAT due in the last period (month or quarter) of the previous year (2024).
- Forecast method: Based on the estimated VAT due in the last period of the current year (2025).
- Actual method: Calculated on the VAT related to transactions recorded (or which should have been recorded) up to 20 December 2025.
The payment is not due if the amount is less than €103.29 or in the case of particular regimes (e.g. forfetario, regime di vantaggio) or cessation of activity. Failure to make the payment, or failure or delay in making the payment, results in an ordinary penalty of 25% of the unpaid tax, which can be reduced by means of an effected repayment.
VAT Group
In the case of a VAT group settlement, the advance payment is paid by the parent company for all participating companies. The amount is determined by algebraically comparing the ‘forecast’ and ‘historical’ data of the group as a whole.
2026 ‘Milleproroghe’ decree
The Council of Ministers No. 151 of 11 December 2025 approved the Milleproroghe decree. Main points of focus:
a. The entry into force of the following is postponed by one year, to 1 January 2027:
- Consolidated Law on Administrative and Criminal Tax Penalties;
- Consolidated Law on Minor Tax Levies;
- Consolidated Law on Tax Justice;
- Consolidated Law on Payments and Collection;
- Consolidated Law on Legislative Provisions on Registration Tax and Other Indirect Taxes.
b. The decree renews for twelve months the recruitment bonus for women, the employment bonus in the Southern ZES and incentives for self-employment in the technology and ecological transition sectors.
c. The deadline for underwriting policies against catastrophic risks for fishing and aquaculture companies and for small and micro tourism accommodation businesses is postponed to 31 December 2026.
d. The deadline for holding remote meetings of companies and entities, i.e. in accordance with the special procedures introduced in 2020, is extended to 30 September 2026.