Taxes - Accounting

Italy

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Tax Rates | Accounting Rules

Tax Rates

Consumption taxes

Nature of the tax: IVA (Imposta sul Valore Aggiunto)
Tax rate: 21%
Reduced tax rate: There are reduced rates of VAT of 4% and 10% on basic products.
A rate of 10% is applied to some foodstuffs, live animals, some fuel supplies, catering, transport and housing.
A rate of 4% is applied to some foodstuffs, imports of agricultural products, medical supplies, books and magazines.
Other consumption taxes: Other taxes are determined at the national or local level such as taxes on tobacco, petrol, alcohol, oil, etc.

Corporate taxes

Tax rate

Corporate tax (IRES - Imposta sul Reddito delle Societa)	27.5% The calculation is different for banks, insurance companies and other financial intermediaries.
Companies are also liable to the IRAP (regional tax on productive activities)	3.9% 10% of IRAP can be deducted for IRES purposes.

Tax rate for foreign companies: Resident companies are taxed on the basis of their global revenue. Non-resident companies are taxed on the basis of their income earned in Italy.
Capital gains taxation: Capital gains are generally treated as ordinary income and taxed at the 27.5% corporate income tax rate.
Main allowable deductions and tax credit: Research expenses. Royalties on intellectual property such as patents and trademarks. Expenses for advertising and entertainments. For additional information, consult the Deloitte Tax Guide.
Other corporate taxes: The Municipal Tax is levied on real estate property.

Individual taxes

Tax rate

The income tax rate	Progressive up to 43%
EUR 0 - 15,000	23%
EUR 15,001 - 28,000	27%
EUR 28,001 - 55,000	38%
EUR 55,001 - 75,000	41%
EUR 75,001 and over	43%

Allowable deductions and tax credit: Maintenance allowance; university expenses; medical expenses (if they are over 129 EUR); dependent elderly or disabled persons; etc.
Special expatriate tax regime: Expatriates living in Italy will be classified as a Resident or Non-Resident. Non-residents are only taxed on income and gains arising in Italy, compared to worldwide income and gains for residents. Individuals are considered residents if:
- for a period of 183 days they are registered with the registry office of the Population Registry (Anagrafe);
- for a period of 183 days has their principal place of business or residence in Italy;
- for a period of 183 days has his centre of vital interest (i.e. his family) in Italy.

Double taxation treaties

Countries with whom a double taxation treaty have been signed: See the list of the signed fiscal treaties
Withholding taxes: Dividends: 27%; Interest: 12.5%/27%; Royalties: 15% if resident and 22.5%/30% if non-resident.
Bilateral agreement: Italy and Tunisia are bound by a double taxation treaty: yes

Signed	Ratified	Enforced
16/05/1979	Law 79-46 of 05/12/79	17/09/1981

Pour aller plus loin dans vos recherches nous vous proposons de connaître les taxes locales connaître les taxes locales qui s'appliquent à votre produit.

Sources of fiscal information

Tax Authorities: Italian tax agency
Other domestic resources: Finanzelavoro.it

Accounting Rules

Tax year

The tax year begins on 1 January and finishes on 31 December of the same year.

Accounting standards

Since November 2001, the organization in charge of the harmonization and control of accounting standards has been the Italian Accounting Organization (Organismo Italiano di Contabilità - OIC). The OIC replaces the "Commissione Paritetica per la Statuizione dei Principi Contabili", a commission controlled by the Italian competent accounting body and which has published 30 accounting standards. Italian accounting standards do not have force of law.

Accounting regulation bodies

OIC

Accounting reports

Italian companies must draw up the following documents in their financial statements:
- the balance sheet;
- the profit and loss accounts;
- the notes to the accounts;
- the annual report.

Publication requirements

The annual report, the audit report, the financial statements and a copy of the minutes of the AGM must be filed with the company register 30 days after the AGM, and this filing must also be published in the official gazette of joint-stock companies (BURSAL).
Unlimited liability companies are not obliged to publish their accounts.
Companies listed on the Stock Exchange must draw up quarterly financial statements.
Unlimited liability companies (SNC, SAS) only have to draw up a balance sheet and a profit and loss account, with no obligatory form.
Small companies are authorized to draw up financial statements in a shorter form.

Professional accountancy bodies

CNDCEC
INRC

Certification and auditing

The Civil Code obliges limited liability companies whose capital is more than 120,000 EUR to appoint, at the AGM (Assemblea dei soci) an audit committee (collegio sindicale) of three to five members who give an account of their audit in an annual report included in the financial statements of the company. This committee is appointed for three years and may be prolonged indefinitely. Since 2004, a "collegio sindicale" must contain at least one revisore contabile. The law does not impose any particular model of presentation of the audit report.
Companies listed on the Stock Exchange must have their accounts audited by external independent auditors (società di revisione).

The National Committee for companies and the Stock Exchange is an independent administrative authority whose role is to protect investors.

Accounting news

OIC news
Fiscooggi.it, Italian tax agencypublications
Fiscoetasse.it