Italian Council of Ministers approves tax reform project
The Italian Council of Ministers has released a message announcing the approval of the draft tax reform law at a meeting held on October 5, 2021. While no specific details are provided, the press release highlights the following key areas of reform:
- Personal income tax reform, including the abolition of the dual system that distinguishes between capital income and employment income, with a reduction in the effective tax rates on employment income;
- Corporate Tax Reform (IRES), including simplifying the IRES and reducing liabilities for businesses;
- VAT reform, including streamlining rates and bases to simplify VAT administration and reduce tax evasion and tax cuts;
- Reform of the Regional Industrial Activity Tax (IRAP), including the phasing out of IRAP;
- Replacing regional and municipal taxes while maintaining equivalent revenues for regions and municipalities, which includes, among other things, converting the local (municipal) property tax (IMU) into a fully municipal tax.
The above is for informative purposes only. Further professional advice should be sought for each particular case. Our firm does not accept any responsibility for any loss or damage occurring by acting on the basis of this information.