The 2024 tax reform is taking shape through a series of decrees implementing the delegated law. These decrees, in addition to modifying the income tax brackets, introduced new tax deadlines, reformed the system of deductions and deductions, and provided for numerous relief and aid for workers. The Council of Ministers, on August 7, 2024, also approved the decree for the rationalization of registration tax, inheritance and gift tax, stamp duty and other indirect taxes other than VAT
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In this guide, we analyze in a clear and detailed way what the 2024 tax reform provides and the main changes introduced on taxes, taxation, deductions, tax penalties, inheritances, donations and indirect taxes.
What does the 2024 tax reform envisage
After the approval of the delegated law on the Italian tax system, the government is carrying out the so-called 2024 tax reform, a series of tax regulations to be implemented starting in 2024. The reform is divided into several legislative decrees that form the fiscal link to the 2024 budget maneuver. Among the main ones:
- Legislative decree for the rationalization of registration tax, inheritance and gift tax, stamp duty and other indirect taxes other than VAT.
- Legislative Decree No. 108 of August 5, 2024 for the rationalization and simplification of tax obligations.
- Legislative Decree No. 110 of 29 July 2024 for the reorganization of the national collection system.
- Decree Law “Urgent Measures in Economic and Fiscal Matters” of 18 October 2023.
- Legislative Decree no. 216 of 30 December 2023 for the implementation of the 2024 IRPEF reform.
- Assessment Decree No. 221 of 30 December 2023.
- Legislative Decree for International Taxation of 27 December 2023.
- Legislative Decree No. 1 of January 8, 2024 for the rationalization and simplification of tax obligations.
- Legislative Decree No. 220 of 30 December 2023 for the revision of the tax sanctioning system.
These decrees and regulations related to the 2024 budget law have made significant changes to the Italian tax structure, to the system of deductions and deductions for workers, and to direct and indirect taxes, inheritances and donations.
Main changes in the 2024 tax reform
- IRPEF 2024 reform: The reform provides for a simplification of income brackets and progressive personal income tax rates, with three new rates: 23% for incomes of up to 28,000 euros, 35% for incomes between 28,000 and 50,000 euros, and 43% for incomes over 50,000 euros.
- No tax area: The no tax area threshold for employee income has been extended to 8,500 euros, in line with that already existing for retirees.
- Deductions and deductions: There has been a reduction of 260 euros in the deduction for particular expenses incurred by taxpayers with an income greater than 50,000 euros.
- 2024 pension increase: The reform provides for an increase in pensions, with particular attention to pensions below the limit of 4 times the minimum.
- Cutting the tax wedge: The tax wedge has been reduced, with a contribution exemption of 6% for incomes of up to 35,000 euros and 7% for incomes of up to 25,000 euros.
- Increase in state salaries: Increases have been planned for low incomes, in addition to the confirmation of the bonus of 100 euros and the allowance against the dear life.
- Reduced taxation on productivity premiums: The tax on production premiums of up to 3,000 euros has been reduced from 10% to 5%.
- Extended summer bonus: The 2024 summer bonus has been confirmed, which facilitates holiday and night work in the tourism sector.
- New rules for state aid: A new legal framework has been created for a tax incentive policy compatible with European regulations.
- News on the global minimum tax: A global minimum tax of 15% has been introduced for companies that operate in Italy with low taxation.
- Impatriate bonus: A new subsidized regime has been established for workers who return to reside in Italy.
- Bonus for companies returning to Italy: Companies that invest in Italy have been granted reduced taxation, with a 50% reduction in income taxes.
- Review of the tax sanctioning system: The sanctioning system has been revised, with reductions in penalties and new rules for penalties in case of missed payments.
- Recruitment relief for companies: The bonus “the more you hire the less you pay” has been introduced, included in the legislative decree of the 2024 personal income tax reform. These benefits concern business income holders, sole proprietorships, partnerships and professionals. New hires are encouraged, with particular attention to categories of employees in need of greater protection
- Excise cuts: The possibility of reducing excise duties on energy products has been foreseen.
- News on electronic invoicing and fees: Changes have been introduced regarding the electronic transmission of fees and B2C electronic invoicing.
- New rules on short term rentals: The national identification code (CIN) has been introduced for real estate units intended for tourist rentals.
- VAT exemption for cosmetic surgery: Cosmetic surgery services have been exempt from VAT when aimed at protecting psychophysical health.
- 10% VAT for dietary supplements: Food supplements have been included in item no. 80 of Table A, part III, with a VAT rate of 10%.
- New rules for the SME guarantee fund: A reorganization of the measures has been planned for 2024.
- Other tax changes with the Omnibus Decree 2024: The Council of Ministers of 7 August 2024 also approved the so-called “Omnibus Decree 2024” with many urgent fiscal measures, regulatory extensions and economic interventions.
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When does the tax reform start
The tax reform, already approved in 2023, officially started on January 1, 2024. Each legislative decree has specific dates of entry into force, as highlighted in the paragraphs of the article
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