Italian Tax System
Taxation in Italy is levied at national, regional and municipal level. The Italian Tax System is managed by the Agenzia delle Entrate (Italian Inland Revenue).
The Tax Year runs from 1st January to 31st December.
OUR CHARTERED ACCOUNTANTS AND TAX CONSULTANTS CAN PROVIDE ALL SERVICES REGARDING THE FULFILLMENTS REQUIRED BY THE ITALIAN TAX SYSTEM:
- consulting and tax advising
PERSONAL INCOME TAX
Resident individuals are subject to a personal income tax called IRPEF on their worldwide income.
Individuals carrying on a business or profession are liable to IRAP which is not deductible from IRPEF.
Non-resident individuals are subject to tax only on their Italian income.
Individuals are considered “resident” for fiscal purposes if:
1) they are enrolled on the Italian Register of Population (Anagrafe);
2) their principal place of business and interests is located in Italy (i.e. family, work etc.);
3) or if they remain in Italy for more than six months in any calendar year.
Personal Income Tax includes:
1) “national rates” range from 23% to 43%;
2) regional surcharge between 1.23% to 2.03% is levied under IRPEF depending on your income and region of residence;
3) together with an additional municipal tax of residence.
Corporate income tax is payable by all resident companies on income from any source, whether earned in Italy or abroad.
Non-resident companies are subject to corporate income tax (IRES) only on income earned in Italy. IRES is charged at 27,50%.
Companies are also subject to a regional tax on productive activities (IRAP) at the rate of 3,90% although regional authorities may increase or decrease the standard rate by up to one percent.