The tax reforms to expect in Italy's 2024 budget

Jessica Lionnel
Jessica Lionnel - [email protected]
The tax reforms to expect in Italy's 2024 budget
A tax specialist at an Italian tax assistance centre (CAF) preparing documents. Italy’s government has made tax reform a focal point of its 2024 budget. (Photo by Tiziana FABI / AFP)

As the Italian government prepares to publish its budget plan for the coming year, income tax and other reforms are at the top of the agenda.


Tax reforms are expected to be among the main features of Italy’s 2024 budget, set to be published on Monday, October 16th, and sent to the European Commission for review in the following days.

As well as tax reform for multinationals, the government is moving towards its long-term goal of a ‘flat tax’ for all employees with the introduction of its planned cut to the number of income tax (Irpef) bands.

The Vice Minister of Economy and Finance, Maurizio Leo, said in August the move towards a ‘flat tax’ was intended to encourage a new relationship between tax authorities and taxpayers.

“We have to be aware that our tax system penalises taxpayers,” he said, after the lower house of Parliament voted to approve the cut to the number of tax bands.

“We have to change the face of the tax system and we want to do this, without lowering the guard on the fight against tax evasion.”

Under the reforms, the number of income tax bands is set to be reduced from four to three.

The current bands are as follows:

  • 23% for incomes up to 15,000 euros.
  • 25% for incomes up to 28,000 euros.
  • 35% for incomes up to 50,000 euros.
  • 43% above 50,000 euros.

The three new bands are expected to be set at 23 percent, 33 percent and 43 percent.


The government has said it aims to reduce the number of bands further in the coming years under its plan to introduce a flat tax rate for employees - which was a cornerstone of its election campaign.

Changes to the Irpef rate will apply to all employees, and many self-employed workers (regular partita Iva holders, but not those on the flat tax rate), and pensioners.

The new tax for multinational companies, dubbed the minimum tax, is due to come in from January 1st next year in line with other European directives. It is predicted to bring in an estimated additional two to three billion in tax revenue.

The reform is expected to be fully functioning within two years.


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