Two-year Preventive Settlement: Operational Instructions and Tax Codes

1. The fact

   According to reports in specialized outlets, including NT+ Fisco of Il Sole 24 Ore, the implementation of the Two-year Preventive Settlement required several clarifying interventions to resolve interpretative doubts regarding deadlines and calculation methods. The process unfolded through various administrative acts: from the Corrective Decree of August 2024, which introduced the substitute tax on surcharges, to Circular no. 18/E of September, containing operational instructions for the first two-year period. The current procedural stage concerns administrative implementation, in which taxpayers must formalize their election by October 31. The creation of specific tax codes (4068, 4069, 4070) represents the final technical step before the deadline, marking the transition from regulatory uncertainty to accounting practice.

2. 

   The rules at play

   The regulatory framework centers on Legislative Decree no. 13/2024 and its subsequent amendments.

   1. The incremental flat tax (Art. 20-bis): allows taxing the higher agreed income at a reduced substitute rate (10% for ISA subjects, 3% for flat-rate schemes), incentivizing election through tax savings on the differential.
   2. Tax codes (Resolution no. 48/E/2024): the correct use of codes 4068 for the first installment and 4069 for the second is essential for the validity of the payment, under penalty of the option becoming ineffective.
   3. Exclusion causes (Art. 11): the provision precludes access to the settlement in the event of extraordinary operations, such as mergers, demergers, or contributions carried out in the first year of the biennium, as well as transfers of businesses or business units.
   4. Forfeiture (Art. 22): the loss of the agreement's effects occurs if undeclared assets exceeding 30% of income emerge or in the event of serious violations of payment obligations.

3. What the jurisprudence says

   As this is recently enacted legislation, the court of cassation has not yet issued specific rulings on the 2024-2025 CPB, but has clarified fundamental principles applicable by analogy. Constitutional case law has reaffirmed that provisions introducing tax relief regimes must be strictly construed, as they derogate from the principle of ability to pay. Furthermore, the settled case law of the Court of Cassation on tax benefits emphasizes that formal errors in completing payment forms, if not promptly rectified, entitle the tax authorities to deny the benefit, confirming a strict formal approach to agreements between taxpayers and tax authorities. These principles will likely guide future litigation regarding the failure to pay or incorrect payment of advances under the new tax codes.

5. Analysis drafted and verified with edit.legal

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8. What it teaches professionals

   1. Conduct a prior due diligence on extraordinary operations carried out in the last tax year, as even a partial transfer can invalidate CPB election.
   2. Rigorously monitor the correct use of tax codes in F24 payment forms, distinguishing between the first advance installment and the balance to avoid electronic rejections or option invalidity.
   3. Evaluate the advantages of the incremental flat tax by comparing historical income with the proposed figure, paying close attention to the 30% threshold to avoid future forfeiture claims.
   4. Advise clients on the necessity of maintaining corporate structure stability throughout the agreed two-year period to avoid early termination of the agreement.

References: D.Lgs. 12 febbraio 2024, n. 13D.Lgs. 5 agosto 2024, n. 108Circolare Agenzia delle Entrate n. 18/E del 17 settembre 2024Risoluzione Agenzia delle Entrate n. 48/E del 19 settembre 2024

Editorial oversight: Avv. Federico Papa·ICAMUpdated 20 September 2026Content drafted with AI support and subject to editorial source checks. Despite these controls, inaccuracies may remain: reports and rectification requests are welcome. Report a correction