The Italian lawmaker has introduced, by the Budget Law for the fiscal year 2022, significant changes in respect to the marginal tax brackets applicable to individual taxpayers. The changes made for 2022 mean the income brackets have been remodelled and personal income tax rates are now reduced from five to four.
This amendment will have a strong impact on medium income, with the most favourable consequence in terms of the tax burden. The changes made to Article 11 of the Tuir can be summarized as follows:
The above law change will have an implication, in terms of a major enhancement, also for the favourable tax reliefs (i.e. inpatriates tax regime – art. 16, D.l.gs. n. 147/2015) providing a tax exemption of the 70% of the employment income.
This means that from the fiscal year 2022 an individual intending to move to Italy may benefit from a lower tax rate, in addition to the strong tax-saving arising from the tax relief already in place.