Biennial Preventive Composition with Creditors: What it is, how it works, and what’s changing in 2025-2026
Knowing good advice The Biennial Preventive Composition with Creditors (CPB) is a measure introduced by Legislative Decree No. 13 dated 12th February 2024, to provide greater tax certainty and stability to professionals and businesses. This new measure, designed for those with business or self-employed income, allows such subjects to agree in advance with the Italian Inland Revenue Agency on their taxable income and net production value for the two-year period following adherence, on which taxes will be calculated. The Objectives of the Two-Year Preventive Composition with Creditors The CPB is part of a broader tax simplification process and aims to: Improve the relationship between taxpayers and the tax authorities Promote tax transparency Promote compliance with the Summary Reliability Indices (ISA) Reduce uncertainty related to potential audits Promote medium-term tax planning Renewal for the 2025-2026 two-year period: what the MEF provides In implementation of Article 9 of Legislative Decree 13/2024, the Ministry of Economy and Finance approved the new methodology for developing composition with creditors proposals for the 2025-2026 period with decree dated 28th April 2025. The implementing provision was published in the Official Gazette No. 117 dated 22nd May 2025 , making the new phase of the CPB operational. Who is eligible for the Two-Year Preventive Composition with Creditors? The legislation identifies three main categories of taxpayers: Those who have already joined the CPB for 2024-2025 Persons who accepted the proposal for the 2024-2025 two-year period do not need to renew their adherence for 2025: the composition with creditors regime will continue automatically, provided that the initial requirements remain met. New adherents for 2025-2026 Those who did not join the CPB in 2024 can now consider joining for the new two-year period 2025-2026.Acceptance of the proposal will take place via ISA tools, following the procedures defined by the MEF Decree, by 30th September 2025. Adherence for the 2026-2027 two-year period As provided forby Article 14 of Legislative Decree no. 13/2024 13/2024, once the first two-year period has concluded, if the requirements persist and no impediments arise, the Italian Inland Revenue Agency can formulate a new composition agreement proposal for the two-year period 2026-2027. Flat-rate taxpayers excluded from the CPB for 2025-2026 Participation in the CPB was experimented in 2024 for flat-rate taxpayers. However, for the two-year period 2025-2026, this option was not renewed: flat-rate taxpayers, therefore, remain excluded from the application of the composition agreement. Date of publication Author Areas of activity Assistenza Fiscale (7) Assistenza Legale (2) Consulenza del lavoro (2) Kreston-TDL (1)