The European Commission, via a comfort letter communicated by the Ministry of Labour on 8 March 2025, has cleared the way for the tax rules of the Italian Third Sector Code. From 1 January 2026, the provisions on direct taxes and preferential regimes for ETS (Third Sector Entities) become operational, including the new non-commerciality test and the optional lump-sum regimes. For social enterprises, profits reinvested are exempt from corporate income tax. Solidarity bonds and tax incentives for investments in newly incorporated social enterprises are still pending further EU assessment.

Law No. 193 of 16 Dec 2024 introduced tax incentives to foster investments in innovative startups and SMEs. These measures build on Law No. 162 of 28 Oct 2024 and are part of a broader set of fiscal and financial tools designed to strengthen equity, support tech investments and boost growth and competitiveness.

The 2025 Budget Law introduces changes to tax credits for innovative investments and the Transition 4.0 program, expands the possibility of combining incentives, and confirms new compliance obligations. More opportunities for businesses, but also new requirements to consider.

The 2025 Budget Law confirms the reform of the Guarantee Fund with a new 50% single rate for liquidity operations and introduces access for Mid Caps with fewer than 250 employees. The ceiling for small-scale operations has also been raised.

The Italian Ministry of Economy and Finance (MEF) has published the “Guidelines for Sustainability Dialogue between SMEs and Banks.” The document aims to facilitate ESG data collection and reporting, supporting access to credit and improving SMEs' competitive positioning.