Italy: 2023 budget law tax measures, including DAC7 and windfall profits tax on energy

Tax-related measures included in the 2023 budget law

Tax-related measures included in the 2023 budget law

The 2023 budget law (Law no. 197 of 29 December 2022, published in official gazette no. 303 on 29 December 2022, and effective 1 January 2023) introduced the following tax-related measures:

  • Tax credit for businesses for the purchase of electricity and natural gas for the first quarter of 2023
  • Postponement of plastic and sugar tax to 1 January 2024
  • Reporting requirement for taxable persons that facilitate—through the use of electronic interfaces such as marketplaces, platforms, portals or similar tools—distance sales of certain goods located in Italy, such as mobile phones, game consoles, tablets and laptops (i.e., DAC7)
  • Non-deductibility of costs deriving from transactions with enterprises located in non-cooperative tax countries or territories
  • Relief on the transfer of assets to shareholders
  • Step-up in tax basis of units and shares for investment funds
  • Permanent establishment (PE) exemption for non-resident investment vehicle operating in Italy through an independent asset manager
  • Increase in the substitute tax on life assurance mathematical reserves
  • Temporary 50% windfall tax on producers, importers, distributors and sellers of electricity, natural gas or petroleum products
  • Various new tax rules for cryptoassets
  • Various changes to tax procedure rules

Read a January 2023 report [PDF 342 KB] prepared by the KPMG member firm in Italy


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