The Legislative Decree of 27 December 2023, n. 209 regards the implementation of the tax reform in the field of international taxation. This decree has the objective of adapting the principles of the national tax system to the levels of protection established by European Union law, also taking into account the evolution of the Court of Justice of the European Union in tax matters and the OECD recommendations in scope of the BEPS project against tax base erosion.

Some salient points of Legislative Decree no. 209 include:

  1. Determination of tax residence: The decree contains provisions regarding the determination of tax residence for natural persons, companies and entities other than companies, in order to make it consistent with international practices and conventions to avoid double taxation .
  2. Transposition of Directive (EU) 2022/2523: The decree transposes the European Union directive of 15 December 2022 on global minimum taxation. Among the measures introduced are a national minimum tax for low-taxed companies and sanctions for violations of minimum tax obligations by multinational and national groups of companies.
  3. Provisions to facilitate compliance regarding hybrid mismatches: The decree also contains measures to facilitate compliance with the rules relating to hybrid financial instruments.
  4. Financial provisions: The decree also addresses financial issues related to tax reform.


The Legislative Decree n. 209 of 27 December 2023will certainly have impacts on Italian taxpayers. Some of the key changes that may affect taxpayers include:

  1. Global minimum taxation: The European Union directive transposed by the decree introduces a minimum taxation for low-tax businesses. This could lead to changes in companies' tax plans and require a review of tax planning strategies. The objective is to ensure that large multinational and national groups are subject to a minimum level of taxation of at least 15%on the income produced in each country in which they operate
  2. Sanctions: The decree provides for sanctions for violation of the obligations regarding the minimum taxation of groups multinational and national businesses. Taxpayers should be informed about these penalties and take the necessary steps to avoid violations.

In summary, Italian taxpayers should carefully monitor developments related to Legislative Decree no. 209 and consult tax experts to fully understand the specific impacts on their financial situations.

If you have a business in Bulgaria, or if you are thinking of moving your business to Bulgaria, contact us, our team at Tax Accounting will help you understand if and how the new decree can impact your business.