The Italian Council of Ministers announced tax reform plans on 16 March 2023 that include several significant changes. The plans include:

• The introduction of a reduced corporate tax (IRES) rate of 15% for companies that commit to making investments that create jobs and promote economic growth, subject to the conditions that the profits subject to the reduced rate are used in qualifying investments within two years and are not distributed or used for purposes unrelated to the exercise of business activity;
• The repeal of the regional tax on productive activities (IRAP) along with the introduction of IRES surtaxes to ensure equivalent tax revenue;
• Changes to simply individual income tax, including a reduction in the number of brackets/rates from four to three, with reported rates of 23%, 33%, and 43%; and
• Broad VAT reforms to make the Italian VAT regime more compliant with EU legislation.

Further details will be published once available.