In the Ordinary Supplement No. 42 to Official Gazette No. 301 of 30/12/2025, Law No. 199 (Budget Law 2026) was published, effective 1/1/2026.
Below are the main tax-related changes.
Summary
Hyper-amortisation 4.0 and 5.0
The introduction of hyper-depreciation is envisaged, i.e. the increase, for income tax purposes, of the acquisition cost of eligible 4.0 and 5.0 assets with exclusive reference to the determination of depreciation allowances and lease instalments after notification to the GSE.
Investments made from 1/1/2026 to 30/9/2028 in assets are eligible:
- new capital equipment and intangible assets 4.0 (updated in the new Annexes to the Budget Law 2026);
- new equipment used in the business for the self-production of energy from renewable sources for self-consumption;
- produced in one of the Member States of the European Union or in States party to the Agreement on the European Economic Area;
- intended for production facilities located in the territory of the State.
Measure of surcharge
The acquisition cost of the subsidised goods is increased to the extent of:
- 180% for investments up to € 2.5 million;
- 100% for investments over € 2.5 million and up to € 10 million;
- 50% for investments over € 10 million and up to € 20 million.
Dividends and capital gains
As of 2026, the partial exclusion from taxation of dividends and capital gains for corporations will be limited to participations of at least 5 per cent of the capital or with a tax value of € 500,000. In the absence of these requirements, the income will become fully taxable. The rule applies to dividends declared on or after 1 January 2026 and capital gains on securities purchased on or after the same date. The other PEX requirements, such as minimum ownership of 12 months and commerciality of the investee company, remain unaffected.
As of 2026, the option of capital gains on capital goods and assets to be taxed in full in the year of realisation will be eliminated. Accrual only remains possible for transfers of companies or business units (owned for at least 3 years).
Assignment of assets to shareholders
The relief for the assignment/transfer of assets to shareholders or transformation into a simple company, applicable to non-instrumental real estate and registered movable property by 30 September 2026, is re-proposed for 2026.
The transaction allows a reduced substitute tax of 8% (10.5% for shell companies) to be paid on capital gains, which can also be calculated on the cadastral value instead of the market value. There are also benefits on indirect taxes (halved registration, fixed mortgage and cadastral taxes) and a 13% tax on cancelled reserves. Payment is to be made 60% by September and 40% by November 2026.
Extraordinary redemption of reserves
The possibility of franking tax-suspension reserves (existing as of 31/12/2024 and remaining as of 31/12/2025) by paying a flat-rate substitute tax of 10% is re-proposed. This operation transforms these items into ordinary profit reserves for tax purposes, making them distributable to shareholders without further taxation for the company. The option must be exercised in the 2025 tax return and payment must be made in four equal annual instalments, starting with the 2025 tax balance.
Limitations on the utilisation of ACE losses and surpluses
For the years 2026 and 2027, strict limits are introduced on the use of tax losses and ACE surpluses to offset the higher taxable income resulting from the recent reforms. Specifically, offsetting may not exceed 35% of the higher income in 2026 and 42% in 2027, thus ensuring a minimum tax base for the state. These restrictions also apply to companies participating in domestic or worldwide consolidation. In summary, companies will not be able to fully offset the tax burden related to these regulatory changes by using past credits.
Rollover of roles – Reopening until 31/12/2023
The ‘fifth amnesty’ is introduced for debts entrusted to the tax collection authorities between 2000 and 2023, limited to omitted payments from declarations (excluding assessments). The measure allows penalties and interest to be waived, with telematic application by 30 April 2026 and first instalment (or balance) on 31 July 2026. It is possible to instalment the debt in a maximum of 54 bi-monthly instalments until 2035, with interest at 3%. Submission of the application suspends attachments and administrative freezes, but forfeiture occurs with the non-payment of only two instalments.
Other contributions and taxes
Contribution on non-EU parcels of low value
A fee is established to be applied to shipments of goods from non-EU countries with a declared value not exceeding € 150. The fee is equal to € 2 and is collected by the Customs Offices at the time of the final importation of the goods being shipped.
Plastic tax and sugar tax
Entry into force postponed until 1.1.2027.
Fuel excise duties
From 2026 petrol and diesel will have rates aligned at € 672.90/1000 litres, with a reduction for petrol and an increase for diesel.
Other tax credits
Facilitation for investments in the Special Economic Zone (SEZ) of southern Italy is extended until 2028, both for all sectors and, with different timing, for the agricultural sector, with an additional credit for those who joined in 2025. A new ‘4.0’ tax credit for investments in innovative tangible and intangible assets from 2026 to 2028 is also dedicated to the agricultural and fishing sectors. Incentives for Simplified Logistics Zones (ZLS) are also extended and, for 2026 only, that for design activities.
Finally, two pivotal measures are refinanced with additional resources: the 4.0 tax credit for technological investments, through a € 1.3 billion fund to increase the spending limits for expenditure already made, and the ‘New Sabatini’, with € 650 million earmarked for 2026 and 2027 to encourage the purchase of capital goods.