Rottamazione-quinquies: scope, effects and issues in tax law
The 2026 Budget Law (Law No. 199 of 30 December 2025) reopens the chapter on tax amnesty with a twofold approach: it establishes rottamazione-quinquies for state tax debts and grants regions and local authorities the power to regulate independently forms of preferential settlement for their own revenues.
The selective substantive scope of Rottamazione-quinquies
The state relief applies exclusively to debts entrusted to the Collection Agent between 1 January 2000 and 31 December 2023. Unlike previous schemes, the legislature has chosen a strictly selective approach, admitting only:
- Unpaid taxes arising from automated or formal checks on tax returns (Articles 36-bis and 36-ter of d.P.R. n. 600/1973 and Articles 54-bis and 54-ter of d.P.R. n. 633/1972).
- Social security contributions payable to INPS (Italian social security institute), excluding those demanded following an assessment.
- Penalties for breaches of the Road Traffic Code, limited to those imposed by state authorities (Prefectures).
Interaction between Rottamazione-quinquies and previous preferential settlements
A crucial aspect concerns the interaction with previous preferential settlements. The provision allows the inclusion of debts already covered by earlier settlement schemes (from the first through to quater) or by the "partial payment and write-off" scheme, but only on condition that, as at 30 September 2025, the taxpayer had forfeited entitlement through failure to pay instalments. Debts for which all instalments had been duly paid as at the same date are excluded from the new measure.
Benefits and effects of Rottamazione-quinquies on litigation and enforcement
Those who opt into rottamazione-quinquies are required to pay only the principal amounts due, the costs of enforcement proceedings and service fees. Interest (including late-payment interest), penalties and collection fees are written off in full. For road traffic fines imposed by Prefectures, the reduction is limited to interest and collection fees, while the principal penalty remains payable.
Submission of the application prevents the commencement or continuation of precautionary and enforcement proceedings and regularises the taxpayer's position for the purposes of issuing the DURC. However, where litigation is pending, participation is conditional upon withdrawal from the proceedings.
Payment plan and forfeiture rules under Rottamazione-quinquies
The debt covered by the relief may be paid in a single payment by 31 July 2026, or in a maximum of 54 instalments payable every two months (until 2035), with each instalment being no less than EUR 100 and interest accruing at 3% per annum from 1 August 2026.
Alongside this extended payment schedule, the legislature has introduced very strict forfeiture rules: the benefits are lost in the event of non-payment or underpayment of the single payment, of two instalments (even if not consecutive), or of the final instalment under the plan. In the event of forfeiture, payments become mere payments on account, enforcement proceedings resume and, above all, the debts will no longer be eligible for ordinary instalment arrangements (under Article 19 of d.P.R. n. 602/1973).
Conclusions
As regards local taxes, municipalities and regions may adopt regulations to reduce or waive penalties and interest on their own revenues, both tax revenues and property income. However, IRAP and surcharges on state taxes remain excluded. It is important to emphasise that the two instruments operate in parallel: the local settlement scheme does not take effect automatically, but requires the taxing authority to assess carefully its budgetary balance and provisions for doubtful debts.
