Italy: Proposed amendments to the 2026 Italian Budget Law
The Italian Government has submitted amendments to the 2026 Draft Budget Law, currently under discussion in Parliament. If approved, these changes will take effect on 1 January 2026 and will impact:
- The Italian Financial Transaction Tax (IFTT) - the draft law proposes to double the current FTT rates as follows:
- FTT on transactions executed on a regulated market: from 0.1% to 0.2%;
- FTT on transactions executed OTC: from 0.2% to 0.4%;
- FTT on high frequency trading: from 0.02% to 0.04%.
- The 1.2% withholding tax on dividends available to EU/EEA corporate shareholders will apply only if the beneficiary meets one of the following conditions:
- Holds at least 5% of the share capital of the distributing company (directly or through controlled entities); or
- The fiscal value of the ownership stake linked to the dividend is at least EUR 500,000.
Further information will be provided as they become available.
This Taxflash is intended to provide clients with general information gathered from different sources that are generally believed to be reliable. LuxCSD S.A. does not guarantee the accuracy or completeness of the information and does not undertake to keep it up to date. Use of the information made available in this Taxflash is at the client’s own risk and LuxCSD S.A., its subsidiaries and affiliates expressly disclaim any liability for any errors or omissions reflected herein. The information in this Taxflash does not constitute legal or tax advice. |