Decree-Law No. 84 of June 17th, 2025, introduces a series of tax reforms that directly affect private Italian companies. The legislation was published in the Official Gazette, and effective as of June 18th.
Key measures
Among the main developments is a significant simplification in the determination of business income for companies in Italy. New rules are introduced regarding the carry-forward of tax losses, making it easier to offset them in future financial years. Additionally, the link with related companies is removed for applying the enhanced deduction of labor costs, thereby promoting new hires under the principle of 'the more you hire, the less you pay'.
Another major update is the revision of the tax regime for Controlled Foreign Corporations (CFCs), within the framework of implementing Pillar 2 of international taxation. The legislation sets a minimum tax rate of 15%. It also allows companies to opt for a simplified regime, valid for three years and automatically renewable.
Tax benefits for biodiesel have also expanded, now lasting six years, subject to specific communication requirements and compliance with European regulations.
Regarding VAT, the reverse charge mechanism for the logistics sector is modified, eliminating requirements related to the predominance of labor and the use of customer-owned assets. However, this measure will require prior authorization from the Council of the European Union for effective implementation.
Lastly, new deadlines for tax obligations are confirmed for companies located in Italy. Payments for the first advance of 2025 and the balance for 2024 may be made by July 21st or August 20th, with a minor surcharge applicable for the latter date.
In the face of tax reforms with numerous updates for private entities, adapting quickly and correctly is crucial. If you are interested in efficient and convenient management of your tax obligations in Italy, please do not hesitate to contact us.
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All information contained in this publication is up to date on 2024. This content has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice.No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this content, and, to the extent permitted by law, AUXADI does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.