Taxation of dividends: the new 10% threshold for income exclusion is now effective in Italy

With the entry into force of the 2026 Budget Law, the taxation system for dividends received in the course of business in Italy has undergone a radical transformation. As of 1 January 2026, the partial exclusion from the formation of taxable income (equal to 95% for IRES entities and 41.86% for partnerships and sole proprietorships) is no longer a generalized benefit. It is now exclusively reserved for recipients holding a shareholding in the capital of the distributing company of no less than 10%. For all "below-threshold" participations, any resolved dividends now contribute fully to the formation of taxable income.

This restriction requires extremely analytical monitoring of both direct and indirect shareholdings held through controlled companies, applying the demultiplication criteria provided by the regulation. Particular attention must be paid to the nature of the title of possession: while bare ownership can contribute to reaching the 10% threshold, usufruct without a capital share risks definitively excluding the recipient from the preferential regime.

In this new scenario, the management of financial flows and corporate reorganization operations take on an even more marked strategic value. For shareholdings below 10%, selling the stake could today be more tax-efficient than receiving dividends, given that the participation exemption (PEX) regime on capital gains has not been subject to the same limitation. It is essential to analyze the impact of the new rules on investment holdings on a case-by-case basis and evaluate potential optimizations of the ownership structure to mitigate the increase in the tax burden.

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