Deputy Minister of Economy Maurizio Leo has also indicated among the priorities the extension of the income range subject to the Irpef rate of 33% up to 60 thousand euros, a flat tax for young people and the flat tax rate of 21% on commercial properties, subject to certain conditions. The proposals still need to be finalized and funded.
One of the most relevant hypotheses concerns the increase from 85 thousand to 100 thousand euros of the revenue and compensation threshold for accessing the flat-rate regime. The proposal, supported in particular by the League, could provide for a double track between income taxes and VAT. The idea consists of maintaining preferential taxation on incomes up to 100 thousand euros, triggering VAT obligations already above 85 thousand. The taxpayers concerned should therefore apply the tax on the invoice and comply with the required obligations, while continuing to determine the income at a flat rate.
Currently, the regime provides for a substitute tax of 15%, reduced to 5% for new businesses that meet the required requirements. Taxable income is calculated by applying the profitability coefficient expected for each activity to the revenues or compensation. Flat rates are also exempt from the application of VAT and the main related obligations. Today, those who exceed 85 thousand euros without exceeding 100 thousand can remain in the subsidized regime until the end of the year and switch to the ordinary one from the following year. Over 100 thousand euros, however, the exit from the flat rate is immediate. The new solution would require careful verification of its compatibility with European legislation, which identifies the reference limit for the VAT exemption regime as 85 thousand euros of turnover.
A further element to consider is the impact on public finances. The previous increase in the threshold from 65 thousand to 85 thousand euros, introduced in 2023, produced lower revenues higher than initial estimates. According to the Court of Auditors, the lower overall revenue was approximately 495 million euros in 2024 and 315 million in 2025. The question of income from employment or pensions which allows access to the flat rate with a second VAT activity also remains open. For 2025 and 2026 the limit has been increased from 30 thousand to 35 thousand euros, but without extensions it would return to the original threshold from 2027. Forza Italia has proposed raising it to 40 thousand euros and making the change structural. Maintaining the limit at 35 thousand euros entailed, according to the estimates of the 2026 budget, a negative impact on public finances, including contribution effects, of 79.4 million for 2026 and 140.9 million for 2027. These measures will therefore also depend on the coverage available.
Another chapter concerns the taxation of salary increases. The Minister of Economy Giancarlo Giorgetti has proposed a form of preferential taxation, similar to a flat tax, on salary increases recognized by companies. The objective is to support the purchasing power of workers and make it more convenient for companies to increase wages, with particular attention to young people and to combating the flight of professionalism abroad. The proposal would be part of the path already started with the fiscal interventions linked to contract renewals. Leo also indicated a possible flat tax on young people's incomes, accompanied by incentives for companies that join the measure. The audience, requirements and costs remain to be defined.
Among the hypotheses being circulated is a contribution of 5% on bank profits, which could generate 2-3 billion euros to be allocated to supporting families and businesses. Giorgetti, however, did not explicitly support this solution, instead recalling the role of competition in the banking system in reducing position rents and extra profits. The topic remains open within the political discussion on the maneuver.
The government is also evaluating a one-year extension of the Transition 5.0 plan based on hyper-depreciation. The hypothesis involves moving the deadline for completing the subsidized investments from 30 September 2028 to 30 September 2029, offering companies more time to plan purchases. The Ministry of Business and Made in Italy is also considering an expansion of eligible expenses, with attention to cloud software and integrated services linked to the use of machinery and technologies. The measure would be linked to Meloni's announcement on tax incentives for software used via the cloud. Any extension must however be evaluated based on the available resources and the necessary coverage.
Another proposal concerns a voucher for micro, small and medium-sized enterprises interested in investing in software and digital solutions, especially in artificial intelligence. The hypothesized contribution would be between 8 thousand and 15 thousand euros, based on the size of the company, with a total budget estimated in the order of 200 million. Access may require a preliminary assessment of the company's technological maturity at a technology transfer center identified by the ministry and the purchase of solutions from suppliers included in a dedicated list. The objective is to encourage the adoption of AI among Italian companies, which is still behind the European average.
