Executive Summary
Italy’s tax landscape saw significant developments this week, headlined by a new special voluntary disclosure for Biennial Preventive Concordat participants, a landmark ECJ ruling on anti-abuse rules in dividend chains, and simplified Pillar Two GloBE reporting requirements. The Revenue Agency also mandated integration of Model 231 with tax control frameworks for collaborative compliance, while the government extended the Sugar and Plastic Tax implementation to July 2027 and enacted a major overhaul of the municipal property tax (IMU) effective 2027.
Important Updates
Special Voluntary Disclosure for Biennial Preventive Concordat (CPB)
On October 26, 2026, the Italian Revenue Agency (Agenzia delle Entrate) introduced a special voluntary disclosure regime (ravvedimento speciale) tailored for taxpayers participating in the Biennial Preventive Concordat (Concordato Preventivo Biennale – CPB) for the 2026‑2027 biennium. The measure, established via a formal provision signed by the Agency’s Director, allows CPB participants to regularize discrepancies between the agreed concordat base and actual taxable income for the two‑year period with reduced penalties and interest. The option covers direct taxes (IRES/IRPEF) and regional production tax (IRAP), but excludes VAT and withholding tax violations. The option window runs from January 1 to March 15, 2027, and must be exercised irrevocably through the Agency’s digital channels (Entratel/Fisconline) with payment via the F24 form using dedicated tax codes to be published later.
The regime targets businesses and self‑employed professionals with revenues up to €100 million, including corporate entities, partnerships, and multinational groups with Italian permanent establishments that have joined the CPB. It provides a safety net for deviations arising from unforeseen business developments or accounting adjustments. Taxpayers must retain supporting documentation for the standard five‑year statute of limitations. The Agency has promised a detailed operational circular and FAQ before the window opens, and failure to meet the March 15 deadline forfeits the benefit.
Sources: FiscoOggi
ECJ Clarifies Anti‑Abuse Clause in Parent‑Subsidiary Directive Dividend Chains
On October 30, 2026, the European Court of Justice (ECJ) delivered a preliminary ruling (Case C‑XXX/XX) interpreting the anti‑abuse provision in Article 1(2)(a) of the EU Parent‑Subsidiary Directive (2011/96/EU). The decision establishes a two‑step test: first, whether the arrangement lacks genuine economic substance (i.e., the recipient is a mere conduit); second, whether the main purpose or one of the main purposes is to obtain a tax advantage contrary to the directive’s object. The Court defined the “beneficial owner” as the entity exercising effective control over dividends and bearing economic risks, not merely the formal recipient. National authorities may look through chains of intermediaries but must respect proportionality and allow taxpayers to rebut the presumption of abuse.
The ruling directly impacts multinational enterprises with cross‑border dividend flows through EU holding structures, especially those using intermediate entities in low‑tax jurisdictions. Tax planning reliant on treaty or directive shopping via shell companies is now under heightened scrutiny. Compliance teams must document commercial substance—employees, premises, decision‑making—for each layer in a dividend chain. Italy is expected to align domestic anti‑abuse rules via a circular or legislative amendment by early 2027. Penalties for non‑compliance follow national regimes, potentially including denial of withholding tax exemption, interest, and fines up to 240% of the tax avoided.
Sources: FiscoOggi
Global Minimum Tax: Simplified GloBE Information Return (GIR) Reporting
On October 21, 2026, the Italian Ministry of Economy and Finance (MEF) issued Decree No. 156/2026 implementing the OECD/G20 Inclusive Framework’s simplified Global Anti‑Base Erosion (GloBE) Information Return for fiscal years starting on or after January 1, 2026. The decree transposes the June 2026 OECD administrative guidance, reducing data fields by approximately 30% and introducing a modular filing approach. The simplified GIR eliminates mandatory reporting of certain jurisdictional blending calculations, deferred tax asset recapture details, and granular constituent entity‑level data for groups with prior‑year revenue below €750 million. A mandatory “core module” covers effective tax rate computation, top‑up tax allocation, and qualified domestic minimum top‑up tax (QDMTT) credits, while optional modules for transitional safe harbours and qualified CbCR safe harbour remain.
The decree applies to all MNE groups within the scope of Pillar Two (consolidated revenue ≥ €750 million) with an Italian ultimate parent entity (UPE) or surrogate parent entity (SPE). A standardized XML schema and a pre‑filled portal (Sogei) for groups already filing Country‑by‑Country reports are introduced. The first simplified GIR is due 15 months after the fiscal year‑end (March 31, 2028 for calendar‑year groups), with early voluntary filing permitted from January 1, 2027. Late filing incurs a penalty of €2,500 per month up to €25,000; incomplete or inaccurate data attracts a 5% surcharge on the top‑up tax due. The MEF will issue a circular by December 2026 detailing the XML schema, validation rules, and portal access.
Sources: FiscoOggi
Circular 6/E/2026: Mandatory Integration of Model 231 with Tax Control Framework
On October 26, 2026, the Italian Revenue Agency issued Circular No. 6/E/2026, requiring entities admitted to the collaborative compliance regime (adempimento collaborativo) under Legislative Decree 128/2015 to fully integrate their Organizational Model pursuant to Legislative Decree 231/2001 (Model 231) with the broader Tax Control Framework. The circular mandates that the Tax Control Framework explicitly incorporate Model 231 ‘s’risk assessment, control activities, information flows, and monitoring mechanisms, ensuring the two frameworks do not operate in silos. Model 231 ‘s’predicate offenses, including tax crimes, must be cross‑referenced with the tax risk map, and the Supervisory Body (Organismo di Vigilanza) must coordinate with the tax control function for consistent oversight.
The requirement applies to large MNEs and domestic groups with turnover exceeding €1 billion or those voluntarily admitted based on tax risk profiles. Sectors with high exposure to tax crimes—manufacturing, financial services, energy, construction—face heightened scrutiny. Entities already in the regime must demonstrate integration by the next annual reporting cycle (typically within 12 months), while new applicants will be assessed on the integrated framework from the outset. Failure to align may lead to denial or revocation of collaborative compliance status, resulting in loss of penalty protection, advance certainty on tax positions, and reduced audit frequency. The circular expects immediate gap analysis and a formal integration plan approved by the board.
Sources: Il Sole 24 Ore
Sugar Tax and Plastic Tax Further Deferred to July‑1‑2027
On October 28, 2026, the Italian Council of Ministers approved another postponement of the Plastic Tax (MACSI) and Sugar Tax, originally introduced by the 2020 Budget Law (Law No. 160/2019). The new effective date is set for July 1, 2027, extending the previous July 1, 2026 deadline. This marks the latest in a series of deferrals since the original 2021 start date. The Plastic Tax applies to single‑use plastic items for containment, protection, handling, or delivery of goods or food; the Sugar Tax targets sweetened non‑alcoholic beverages and products for dilution (CN codes 2009 and 2202). The deferral does not alter substantive scope, rates, or compliance mechanics; the legislative decree must be published in the Official Gazette to gain legal force.
The extension provides temporary relief from registration, reporting, and payment obligations for manufacturers, importers, and intra‑EU acquirers in packaging, food and beverage, retail, and logistics sectors. However, it prolongs regulatory uncertainty for long‑term capital expenditure and compliance system investments. Companies that have already implemented compliance infrastructure face sunk costs without immediate tax liability. Taxpayers should monitor the Official Gazette for the definitive decree and use the period to validate product classifications, update ERP and tax engines, conduct dry‑run reporting, and train personnel. Non‑compliance upon implementation carries penalties under Legislative Decree 471/1997, including fines up to 30% of unpaid tax plus interest.
Sources: PwC Italy Blog
Legislative Decree 147/2026: Structural Reforms to Municipal Property Tax (IMU)
Adopted on August 7, 2026, and published in the Gazzetta Ufficiale, Legislative Decree No. 147/2026 introduces structural amendments to the Imposta Municipale Unica (IMU), Italy’s primary municipal property tax, effective generally from January 1, 2027. The decree revises the taxable base calculation by updating cadastral rental values (rendite catastali) through a new coefficient mechanism linked to market‑value indices, replacing static coefficients last revised in 2012. A mandatory periodic revaluation every five years starts in 2027. Exemptions are expanded for social housing, cultural heritage, and non‑profit properties meeting usage thresholds. Municipalities gain limited discretion to adjust the standard 0.86% rate within a 0.76%–1.06% band, subject to balanced‑budget constraints. The decree also harmonizes the TASI (Tax on Indivisible Services) into IMU, eliminating separate filing, and mandates a new digital cadastral data exchange platform (SIT) for real‑time property updates to the Revenue Agency.
The changes affect all real estate owners in Italy—resident individuals, non‑resident investors, real estate funds, corporate property holders, and public entities. Multinational groups with Italian property portfolios must reassess asset valuations for both IMU and financial reporting (IFRS 13). Property managers and tax advisors need to update compliance workflows for the new revaluation cycle and SIT integration. Taxpayers must submit updated property declarations (Dichiarazione IMU) by June 30, 2027 reflecting new cadastral values, with the first five‑year revaluation report due by December 31, 2027. Municipalities must publish their chosen rate by October 31, 2026 for the 2027 fiscal year. Non‑compliance penalties include a 30% surcharge on omitted tax plus interest. The Revenue Agency will issue an implementing circular by January 31, 2027 detailing SIT technical specifications and coefficient tables.
Sources: PwC Italy Blog
Secondary Regulatory & Regional Updates
- CCII Part II Circular on Business Crisis and Insolvency: The Revenue Agency published the final Part II circular on the Business Crisis and Insolvency Code (Legislative Decree 14/2019), providing binding guidance on tax treatment of debt restructuring agreements (debt forgiveness income excluded from taxable income if homologated), composition with creditors (tax loss and ACE carryforward permitted with business continuity), and judicial liquidation (capital gain deferral if proceeds reinvested in qualifying assets within 12 months). Applies to procedures initiated after September 1, 2026; transition election by December 31, 2026. FiscoOggi
- Third Sector Tax Reform Implementation Roadshow: The Agency’s roadshow highlighted four key 2026‑2027 novelties for non‑profit entities (ETS): expanded 5% substitute tax on revenues up to €400,000 (option by November 30, 2026); VAT exemption consolidation for membership fees, fundraising, and ancillary activities up to €65,000/year; enhanced 65% donation tax credit (up from 30%) for cash donations up to €30,000/year; and mandatory digital reporting via the “Non‑Profit Digital Counter” from January 1, 2027 (six‑month transition). FiscoOggi
- Corporate Reorganization and VAT Debts – No Ad Hoc Notice Required for Beneficiary Company: The Supreme Court (Judgment No. 25437/2026) ruled that in a spin‑off, the beneficiary company’s successive liability for pre‑existing VAT debts arises automatically by law (Art. 140 DPR 602/1973). The tax authority need not serve a separate assessment notice to the beneficiary before issuing a collection notice (cartella di pagamento). This increases tax risk for successor entities in M&A restructurings, emphasizing the need for robust due diligence and contractual indemnities. FiscoOggi
- Cancellation from Business Register Does Not Extinguish Tax Obligations: The Supreme Court (Order No. 26634/2026) confirmed that a company’s cancellation from the Business Register does not extinguish its tax debts. Tax acts addressed to the dissolved company remain valid if properly notified to former shareholders as universal successors (Art. 2495 Civil Code). This closes a potential loophole and reinforces the need for thorough tax clearance before finalizing company cancellation. FiscoOggi
- Registration Tax on Business Transfer – Proof of Inerenza Required for Debt Deductibility: The Supreme Court (Order No. 26938/2026) held that liabilities assumed by a buyer can reduce the registration tax base only if strictly connected (inerenti) to the transferred business activity and adequately documented. The burden of proof lies with the taxpayer; unrelated or unsubstantiated debts cannot be deducted. Penalties for understatement range from 90% to 180% of omitted tax. FiscoOggi
- EU General Court: Staggered Shipments of Components Constitute Finished Product for Customs: The General Court (Case T‑529/25, Prestige Rijwielen) upheld classification of bicycle components shipped in staggered consignments as complete bicycles (CN 8712) rather than parts (CN 8714), applying General Interpretative Rule 2(a). The ruling affects importers in automotive, machinery, electronics, and bicycle industries using phased shipments, potentially increasing duty rates from 4.7% to 14% and impacting VAT, licensing, and CBAM obligations. Businesses should review import flows and consider Binding Tariff Information requests. PwC Italy Blog
- Energy and Utilities Sector Tax and Legal Update – November 2026: PwC’s sector roundup highlights a CJEU preliminary reference on Italy’s capacity remuneration mechanism (CRM) state‑aid compatibility, updated FER1/FER2 incentive tariffs for 2027‑2029 with new sliding feed‑in premium for offshore wind and green hydrogen, ARERA network code revisions for demand response and storage, a proposed 50% super‑deduction for battery storage and carbon capture capex in the 2027 Budget Law draft, and Constitutional Court confirmation of the windfall profit tax on electricity producers. Key deadlines: CRM business plans by December 15, 2026; FER2 applications January 1 – March 31, 2027. PwC Italy Blog
- Customs Duties on E‑Commerce – Late October 2026 Updates: The EU Implementing Regulation (EU) 2026/YYY raises the low‑value consignment relief threshold from €150 to €200 for IOSS imports and introduces a simplified Dataset H7 declaration (28 fields vs. 42). Italian Circular 22/2026 extends marketplace customs debt liability for non‑EU sellers not enrolled in IOSS, requiring a customs guarantee. New CN codes for 3D‑printed goods, refurbished electronics, and digital‑service bundles take effect January 1, 2027. The EU Customs Data Hub pilot expands to Italy, mandating real‑time ENS data transmission for postal/express consignments from February 1, 2027. Compliance deadlines: Dataset H7 migration by March 1, 2027; marketplace registration by December 31, 2026; CN code updates by January 1, 2027. PwC Italy Blog
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.