Third Sector: EU greenlight to ETS tax framework. New regimes in force from 1 January 2026

8 March 2025 — Italy’s Ministry of Labour announced the European Commission’s greenlight to ETS taxation through a comfort letter. Since the measures do not constitute State aid, they can take effect without an additional formal decision. For entities with a calendar financial year, the effective date is 1 January 2026 (earlier application may be possible for non-calendar financial years).

Main changes

1. Art. 79 CTS – Non-commerciality. Activities of general interest are deemed non-commercial if provided free of charge or at prices not exceeding costs + 6% (annual test, max 3 consecutive periods). This assessment also affects the entity’s overall tax status.

2. Optional lump-sum regimes:

- Art. 86 CTS (ODV/APS): coefficients 1%/3% and VAT simplifications; the operating threshold needs alignment with the EU €85,000 VAT franchise (guidance pending).

- Art. 80 CTS (non-commercial ETS): tiered coefficients (services 7–17%, other activities 5–14%), no maximum turnover cap; convenience to be assessed case by case.

3. Social enterprises (Art. 18, Leg. Decree 112/2017). Exclusion from corporate income tax (IRES) for profits reinvested in institutional activities/equity (indivisible reserves).

What is still on hold (for now)

Not yet operational: tax incentives for investments in newly incorporated social enterprises (Art. 18(3)–(4), Leg. Decree 112/2017) and solidarity bonds (Art. 77 CTS).

ONLUS: timing and steps

With the new framework starting in 2026, ONLUS must decide by 31 March 2026 whether to join the RUNTS (as an ETS or social enterprise) or remain outside/close, managing the allocation of assets accordingly. Clarifications are expected on any interim “window” between 1/1/2026 and RUNTS registration.

What to do now

1. Map costs/revenues for the +6% test and define internal criteria for overheads.
2. Simulate convenience between Art. 80 and Art. 86 (including VAT and compliance impacts).
3. For social enterprises: set profit retention policies and traceability of reinvestments.
4. ONLUS: plan bylaws, RUNTS application timing, and asset management by 31/03/2026.