Withholding Tax Regulations for Travel Agencies and Tour Operators
The Italian Budget Law 2026 (Law No. 199 of 30 December 2025) introduced, effective 1 May 2026, the mandatory application of withholding tax on commissions paid to travel agencies and tour operators.
The regulation applies exclusively to agencies that maintain a permanent establishment in Italy through which commissions relating to bookings are invoiced. The applicable withholding tax regime varies according to the agency's operational structure and, where permitted, may benefit from a reduced taxable base upon submission of a specific annual declaration.
To ensure compliance with these new tax requirements, we kindly ask all agencies to review the information below and complete the documentation corresponding to their tax status:
- Annex A - Italian Tax Residence Declaration: to be downloaded, completed, signed, and returned if the agency has an operational office or tax residence in Italy.
- Annex B – Foreign Tax Residence Declaration: to be downloaded, completed, signed, and returned if the agency does not have a tax or operational presence in Italy.
We thank you for your cooperation and remain at your disposal should you require any further clarification or additional information.
