Italy: MEF: Flat-Rate Regime Reduces Tax Evasion

The Ministry of Economy and Finance (MEF) 2026 report on the unobserved economy and tax evasion highlights that the flat-rate regime (regime forfettario) has led to a measurable reduction in evasion among small businesses and professionals. Simplified accounting and fixed taxation increase compliance. Report released 9 October 2026.

Key Takeaways

  • Evasion Drop: The regime’s simplicity reduces underreporting incentives.
  • Revenue Stability: Despite lower rates, broader base yields stable revenue.
  • Policy Implication: Supports expansion of simplified regimes to other taxpayer categories.

Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.

Source: Read Official Announcement