Italy's 2026 Budget Law has introduced a number of significant reforms for small and medium-sized enterprises. In this article we analyse the key provisions and their practical implications.
Tax credits for capital investment
Among the most impactful measures is the revision of the tax credit regime for investments in capital goods. The legislature has confirmed and recalibrated the rates for the 2026–2027 period, with particular emphasis on investments in digital technologies and environmental sustainability.
Businesses intending to benefit from the new incentives should pay close attention to the eligibility requirements, which have been partially amended — especially with regard to size thresholds and qualifying sectors.
Flat-rate regime: what has changed
The flat-rate regime has undergone several significant changes, including an increase in the revenue threshold and the introduction of new restrictions on access for individuals providing services to former employers.
Simplifications for SMEs
On the compliance front, the reform introduces a series of simplifications affecting electronic invoicing, periodic VAT settlement communications, and VAT register requirements. These measures form part of the broader digitalisation of the relationship between taxpayers and the tax authorities.
Practical recommendations
We recommend that businesses promptly review their position in light of the new provisions, particularly with regard to investment planning and the alignment of internal administrative procedures.
Our firm is available to provide a personalised analysis of the implications of the new rules for your specific business situation.
The information contained in this article is of a general nature and does not constitute professional advice. For tailored guidance, please contact our firm.