Italy
Taxation in Italy
Recent forum posts
-
Starting a new business in India
I run a UK business and my fellow Director is an Indian National (I am a British citizen).We now want to launch our company in India and I am struggling to make any progress with the Indian High Commission. Can anyone help me with the process. I have twice visited the commission in London and wasted hours of time due to their complete lack of organisation.I will appreciate any help to make
Total Posts: 12 Last post by leahhart65
-
Hiring Struggles for Small Businesses in NZ, Are We Overlooking Soft Skills?
Hi everyone,I’ve noticed that many small businesses in NZ are facing real challenges when it comes to hiring the right people not just in terms of technical ability, but soft skills too. Communication, adaptability, and problem-solving often seem harder to find than certifications or experience.A few small business owners I’ve talked to said they struggle to read between the lines of a sta
Total Posts: 1 Last post by ngaiomarsh98
Taxation in Italy
Income Tax
The new rates for personal income tax are listed below.
Taxation of an individual's income in Italy is progressive; the higher the income, the higher the rate of tax payable.
An individual is liable for tax on his income as an employee and as a self-employed person. Tax will be payable on income earned in and overseas by an individual who meets the test of a permanent citizen of . A foreign resident who is employed in pays tax only on income earned in .
One of two tests must be passed to be considered an Italian resident: a life centred in Italy, or being registered in the Population Registry as living more than 183-days-a-year there. It is essential to point out, in regards to taxable income from outside , that a 'tax credit' is granted for tax deducted outside. In the case of income from a salary, the employer is obligated to deduct the amount of tax payable on a monthly basis. A self-employed person must pre-pay income tax that will be offset on the filing of an annual return. The advance payment is decided on the basis of the return made for the previous year. In the event of a new business, the advance will be calculated on the basis of estimates made by you, or the head of the company.
Up to 15,000 23%
15,001 – 28,000 27%
28,001 – 55,000 38%
55,001 – 75,000 41%
Over 75,000 43%
Corporate Tax
The corporate tax rate in Italy is 24%.
VAT
VAT is invariably 21%. There are reduced rates of VAT of 4% and 10% on basic products. VAT is charged on assets and services in Italy as well as on imports into Italy. VAT returns are made monthly. In certain cases, it is possible to make a return once a quarter. An annual VAT return must be filed once every year on March 15th.