ETS tax regime: decommercializzazione (Art. 79 CTS), what changes for your APS

Intro: the tax revolution nobody understands (yet)

From January 1, 2026, the tax regime under Article 79 of the Codice del Terzo Settore (CTS, Italy's Third Sector Code), D.Lgs. 117/2017, comes into force. This is not a minor regulatory tweak: it's the most important change in non-profit taxation in twenty years.

In two words: the activities of an APS/ETS that fall under general interest (culture, research, health, volunteering, training) pay almost no tax at all if run at cost (that is, if they don't generate significant profit).

What does "at cost" mean? It means you can have a maximum margin of +6% between revenue and expenses for that activity, for three consecutive years. If you stay within this margin, you won't pay IRPEF, IRES, IMU, or municipal taxes on that revenue. It's a full exemption.

The problem? Thousands of APS still don't know this rule exists, and others are applying it incorrectly. We'll explain how to use it (and how to avoid the risks), with concrete examples.

The underlying question: what counts as a "commercial" activity for an APS?

Before understanding decommercializzazione, you need a basic distinction that many people confuse.

An APS can carry out two types of activity:

Type 1: Institutional activities (of general interest)

These are the ones set out in your bylaws as your main purpose. For a cultural APS:
- Organizing festivals, exhibitions, public concerts
- Offering workshops and training courses
- Historical, artistic, scientific research
- Community workshops

When you do these things, you're pursuing the general interest. It's your statutory purpose.

Type 2: Commercial activities (instrumental/ancillary)

These are secondary activities you carry out to self-fund. Examples:
- Selling merchandise/gadgets
- Catering at an event
- Renting out spaces
- Commercial consulting provided to third parties
- Paid courses aimed only at "clients" (not members)

Type 2 activity is "commercial" because it generates profit to self-fund the organization.

Article 79 CTS: decommercializzazione

Art. 79 creates a new tax category: institutional activities (type 1) are considered non-commercial, and therefore tax-exempt, provided they operate under what's known as cost-parity, or with only a slight surplus.

Here's where things get technical. Let's take a breath.

What "non-commercial activity of general interest" means

An activity is considered non-commercial when:
1. It's an institutional activity (in your bylaws)
2. It's offered free of charge or at the cost of running it (with no significant profit)
3. The margin (if any) doesn't exceed certain limits

The allowed margins

Here comes the magic number: +6%.

If your activity of general interest (e.g., a cultural festival) generates:
- Costs: 10,000 euros (artists, spaces, insurance, volunteers, etc.)
- Revenue: 10,600 euros (tickets, sponsors, public contributions)
- Margin: 600 euros (+6%)

This margin is fully tax-exempt. You won't pay IRPEF, IRES, nothing.

If the margin is +8% (10,800 euros in revenue), then the 200 euros above the +6% threshold will be taxed as APS income.

Time limit

The +6% margin is allowed for three consecutive years. If in 2026, 2027 and 2028 you stay within this margin, all is well. If in 2029 you exceed +6%, taxation returns to normal for the year 2029 only.

But if you keep exceeding +6% for four years in a row (2029, 2030, 2031, 2032), the Agenzia delle Entrate (Italy's tax authority) could argue that the activity is no longer "institutional" but "commercial," and retax the margins from previous years. This is the biggest risk.

A concrete case: the OnStage Festival

Let's imagine our APS OnStage organizes "RestArt 2026," a three-day cultural festival:

Budget

| Item | Amount |
|------|---------|
| Artist fees | 4,000 |
| Spaces (square, rentals) | 1,500 |
| Third-party liability insurance | 800 |
| Materials, printing | 600 |
| Volunteers (reimbursements) | 500 |
| Total costs | 7,400 |

Revenue

| Item | Amount |
|------|---------|
| Tickets (200 x 30 euros) | 6,000 |
| Local sponsors | 1,200 |
| Municipal contribution | 800 |
| Donations | 300 |
| Total revenue | 8,300 |

Tax analysis

- Revenue: 8,300 euros
- Costs: 7,400 euros
- Margin: 900 euros
- Margin percentage: 900 / 7,400 = 12.2%

The 12.2% exceeds the allowed 6%. The Agenzia delle Entrate could say: "OnStage, your festival has a 12% margin, so the 900 euros are taxable income."

In 2026, OnStage would pay tax on approximately 400 euros (the difference between 12.2% and 6%).

How to avoid the problem?

OnStage has options:

Option A: Raise costs to lower the margin. Example:
- Pay the artists more (+ 300 euros)
- Rent a better venue (+ 200 euros)
- Increase volunteer reimbursements (+ 400 euros)
- New total costs: 7,400 + 900 = 8,300 euros
- New margin: 0% (revenue = costs)

Result: no tax. The entire surplus was reinvested in the quality of the event.

Option B: Lower revenue (without cutting quality). Example:
- Lower the ticket price from 30 to 28 euros (-400 euros)
- Reduce sponsorship revenue (+200 euros instead of +1,200)
- New revenue: 8,300 - 600 = 7,700 euros
- New margin: 300 euros = 300 / 7,400 = 4% ✓

Result: margin under 6%, fully exempt.

Option C: Keep two separate accounts (if the festival has a commercial component). Example:
- "Public festival" area (cost-parity): tickets + contributions + sponsors = 6% margin
- "Merchandising" area: sale of festival T-shirts = pure commercial revenue (tax due)
- Keep them separate in the 2026 financial statement for clarity

The choice depends on your philosophy: do you prefer an inclusive festival with a low ticket price, or a festival with a surplus that funds future activities?

How to document everything for the Agenzia delle Entrate

Decommercializzazione isn't automatic: you must document it in the 2025 financial statement.

What to write in the 2026 financial statement (for fiscal year 2025)

In the management report, include:
1. A list of institutional activities: (e.g., "RestArt Festival, Freestyle 101 Workshop, Community workshops")
2. For each activity: total costs and total revenue
3. The margin calculation: (revenue - costs) / costs × 100
4. A declaration: "The activities listed below are non-commercial under Art. 79 CTS, as they are carried out at cost-parity within the 6% margin"
5. Supporting documentation: an activity-by-activity breakdown (a spreadsheet for the Agenzia delle Entrate if requested)

Example table to include:

| Activity | Costs | Revenue | Margin % | Art. 79? |
|----------|-------|--------|-----------|----------|
| RestArt Festival | 7,400 | 8,300 | +12% | No (exceeds 6%) |
| Freestyle Workshop | 2,000 | 1,950 | -2.5% | Yes (below cost) |
| Community workshops | 1,500 | 1,500 | 0% | Yes (cost-parity) |

What happens if the Agenzia delle Entrate challenges you?

Scenario: the Agenzia delle Entrate reviews your 2026 financial statement and says: "OnStage, your RestArt Festival has a 12% margin, not 6%. You must pay tax on 400 euros of income."

You have the right to appeal. Case law is still evolving, and the Agenzia delle Entrate hasn't yet fully clarified what "cost-parity" means. You can:

1. Request a ruling (an informal query) to the Agenzia delle Entrate before 2026, explaining your budget model. They'll give you an answer (not binding, but useful)
2. Keep detailed documentation: every item of revenue and every cost needs a receipt, an invoice, documentation. The Agenzia delle Entrate is more convinced if you have paperwork
3. If a challenge does arrive, push back, showing that the margin was necessary to cover costs (to legally pay volunteers decently, insurance, etc.)

The risk of retaxation from 2026 is low if you're acting in good faith, but the Agenzia delle Entrate's stance is still uncertain. Get help from an accountant who knows the CTS well.

The three special "decommercialized" activities for APS

Art. 79 lists three categories of special activities for which decommercializzazione is automatic (with no margin limit):

1. Scientific research of particular social interest

If your APS (rare, we know) conducts scientific research, revenue from:
- Direct research
- Research entrusted to universities or research bodies
Is always non-commercial, with no margin limit.

Example: an APS that studies durable street-art techniques, in partnership with a university. Revenue from this research is never taxed.

2. Sale of its own publications

If it produces its own books, magazines, catalogs (not third-party publishing), revenue from sales is decommercialized (with no margin limit).

Example: APS OnStage publishes a book on the history of freestyle in Puglia. It sells 500 copies at 15 euros = 7,500 euros in revenue. Not taxed, as long as the book genuinely documents your activity.

3. Food, lodging, tourism (APS and ODV only)

If your APS organizes guided tours, trips, summer camps, cultural retreats, the revenue is decommercialized with no margin limit.

Example: APS OnStage organizes a "mural tour" in Lecce with 30 participants, 200 euros each = 6,000 euros. Expenses: 4,000 euros. Margin: 2,000 euros (50%). Not taxed because it falls under "organizing cultural tourism and tours."

Careful: this applies only to APS and ODV, not to ETS in general.

Alternative flat-rate regime: Art. 86 CTS

If decommercializzazione seems too complicated, Art. 86 CTS offers a simplified flat-rate regime.

In short:
- If your APS had revenue < 85,000 euros in 2025, you can apply a flat-rate profitability coefficient of 3% (for APS) or 1% (for ODV)
- This means: your revenue is treated as if it generates a 3% profitability. If revenue is 50,000 euros, taxable income is 50,000 × 3% = 1,500 euros. You pay tax on those 1,500 euros (IRES, which for an APS is 12%)

Example:
- 2025 revenue: 50,000 euros
- Taxable income under Art. 86: 50,000 × 3% = 1,500 euros
- IRES due (12%): 180 euros

Vs. the traditional system (without Art. 86):
- If your margin is 10% on 50,000 = 5,000 euros of net revenue
- IRES due (12% on 5,000): 600 euros

With Art. 86 you save 420 euros.

Strategy: if you're between 30,000 and 85,000 euros in revenue, and decommercializzazione seems too complicated, use Art. 86 (simpler, less risk of disputes, flat-rate).

Box: genuine commercial activities (which pay tax)

Don't confuse decommercialized activities with genuine commercial activities. An APS can also carry out pure commercial activities (which pay tax):

- Selling merchandise/gadgets not directly tied to the activity (generic T-shirts, caps, etc.)
- Consulting services to third parties (if offering consulting isn't your statutory purpose)
- Renting out spaces (if you have a venue and rent the hall to third parties)
- Catering (if you serve food at an event for profit, rather than as a service to participants)

These must be kept separate in the financial statement and are taxed normally (IRES, IMU if applicable, etc.).

Practical procedure: how to fill out the 2026 financial statement

If your APS wants to use Art. 79 (decommercializzazione) in the 2026 financial statement, here's the workflow:

1. Identify your institutional activities: list them in your financial statement (Nota integrativa, the explanatory notes)
2. Create a detailed breakdown: separate costs and separate revenue for each activity
3. Calculate the margin: (revenue - costs) / costs
4. Declare it: "The following activities are classified as non-commercial under Art. 79 CTS"
5. Keep documentation: invoices, receipts, bank statements proving costs and revenue
6. Have the statement reviewed by an accountant who knows the CTS (not everyone does!)

If your accountant says: "I don't know how to prepare your financial statement under Art. 79," switch accountants. There are firms specialized in non-profit work (search for "commercialista terzo settore" plus your region).

Risks and limits of Art. 79

Let's be blunt: the Art. 79 regime is still subject to interpretation. The Agenzia delle Entrate is still issuing clarifying circulars. Here are the risks:

Risk 1: Future reassessment

In three years, the Agenzia delle Entrate could say: "We've reassessed the rule. Those margins you declared as 'decommercialized' were actually commercial." Retaxation for the previous 5 years.

Probability: low (but possible).

Risk 2: Year-to-year variability

If in 2026 you're at +4% (safe), but in 2027 you rise to +7% (above the threshold), and in 2028 you come back down to +5%, the Agenzia delle Entrate could challenge 2027. It's not clear whether the limit is "per year" or a "three-year average."

Advice: always stay below +6%, with a safety margin (e.g., +4-5%).

Risk 3: Documentation requirements

To use Art. 79, you must keep activity-by-activity financial breakdowns. If you don't keep them, the Agenzia delle Entrate could say: "You have no proof that activity was non-commercial." You have no choice but to keep things separate.

CTA: talk to your accountant now

If your APS had revenue > 50,000 euros in 2025, start discussing Art. 79 with your accountant now (by June 2026 at the latest).

If you don't have an accountant, look for one specialized in the third sector. Ask them:
- "Do you know Art. 79 CTS and decommercializzazione?"
- "Do you have APS clients using the Art. 86 flat-rate regime?"
- "How do you recommend documenting non-commercial activities?"

If they answer vaguely, look elsewhere.

The cost of a good accountant (500-1,500 euros/year) is irrelevant if it saves you 2,000-3,000 euros in taxes thanks to Art. 79 or 86.

Disclaimer

This article is informational and is based on CTS regulations current as of May 2026. Art. 79 is still evolving. The Agenzia delle Entrate has not issued a definitive circular on how to apply decommercializzazione. Several tax tribunals have already begun ruling on appeals (filed before 2026), but there is no settled case law yet.

This is not formal tax advice. Always consult an accountant experienced in the third sector before applying the Art. 79 or Art. 86 regime to your 2026 financial statement.

If you receive a challenge from the Agenzia delle Entrate regarding Art. 79, turn to a firm specialized in tax appeals (not a general accountant).

Regulatory sources:
- D.Lgs. 117/2017, Art. 79 — ETS tax regime
- D.Lgs. 117/2017, Art. 86 — APS/ODV flat-rate regime
- Agenzia delle Entrate — ETS tax regime
- Cantiere Terzo Settore — Guide to Art. 79 CTS

Recommended further reading:
- Agenzia delle Entrate circular on the Codice Terzo Settore (search on agenziaentrate.gov.it)
- RUNTS guidelines on the ETS tax regime

Internal links in the APS Taxation series:
1. [5x1000 for APS: registering on the 2026 list](/blog/5x1000-aps-iscrizione-elenco-2026-procedura-agenzia-entrate)
2. [Donations to APS: the 19% tax deduction](/blog/erogazioni-liberali-aps-detrazione-19-percento-deducibilita)
3. ETS tax regime: decommercializzazione (this article)
4. [Modello EAS for APS: deadlines and penalties](/blog/modello-eas-aps-quando-presentarlo-cosa-rischi-non-fario)
5. [VAT and the Third Sector: 2026 exemptions](/blog/iva-terzo-settore-aps-quando-applicarla-esenzioni-2026)