Corporate Tax in Italy

Overview by
Tax Base For Resident and 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.

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
Foreign companies do not pay the local tax (IRAP).
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.

Country Comparison For Corporate Taxation

  Italy OECD United States Germany
Number of Payments of Taxes per Year 15.0 14.2 11.0 16.0
Time Taken For Administrative Formalities (Hours) 285.0 199.3 187.0 215.0
Total Share of Taxes (% of Profit) 68.6 43.0 46.8 48.2

Source: Doing Business

Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.

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