111/2023

 

Law No. 111/2023 (Tax Delegation Law) streamlines Italy's tax system, aiming for reduced corporate/individual tax burdens, simplified compliance, and enhanced digitalization. Key measures include revising tax residence, creating a single financial income category, and strengthening international tax compliance. Legislative Decree 1/2024 implements this by accelerating tax returns and optimizing VAT. 

Key Aspects of Italy's 111/2023 Tax Reform

• Tax System Reform: Law no. 111/2023 provides the framework for significant structural changes, including tax reduction, simplification, and digitalization.
• International Tax Changes: The reforms tighten rules for non-resident entities, strengthening compliance with international best practices and double-tax treaties.
• Compliance Deadlines: Legislative Decree 1/2024, stemming from Law 111/2023, brings forward deadlines for filing income and IRAP tax returns and simplifies data reporting.
• Financial Income & Tax Credits: The reform introduces a single category for financial income, including capital gains and dividends. It also modifies rules for using and certifying tax credits. 

Other "111" Compliance Contexts

• IVASS Order No. 111 (2021): Relates to Anti-Money Laundering (AML) regulations for insurance companies, specifically setting tax monitoring obligations for foreign insurers operating in Italy.
• Environmental (2019): Legislative Decree No. 111/2019 addresses compliance with EU Directive 2008/50/EC regarding air quality. 

• The tax reforms aimed to make the Italian system more efficient.
• The changes introduced by Law 111/2023 generally seek to enhance the relationship between taxpayers and authorities.