Italy tax rate in 2023
June 2023The personal Income Tax Rate in Italy is expected to reach 43.00 percent by the end of 2023
Italy Colombia Tax Agreement
October 2021Italy and Colombia concluded on October 6, 2021 the legal steps to ratify the double tax agreement, DTA, between the two countries.
According to the DTA, when in force, the reduced tax withholding rates will be for dividends 0%/5%/15%, for interest 5%/10% and10% for royalties.
The DTA will enter into force on January 1, 2022.
Italy Corona Tax Relief
April 2020The deadline for filing 2019 annual tax reports and paying the tax due was postponed till June 30,2020 for companies and individuals.
Individuals paying their due taxes and filing reports before May 31, 2020 will get a 5% deduction of their tax dues.
Italy Electronic Invoices
May 2018Starting January 1, 2019 all V.A.T. payers in Italy will be obliged to issue electronic invoices instead of paper invoices.
Certain sectors e.g. sale of fuel will be obliged to do so starting July 1, 2018. May 2018.
Italy Corporate Tax 2017
April 2017
The corporate income tax rate in Italy, IRES, is reduced to 24% in 2017 compared to 27.5% in 2016.
Italy New White List
September 2016
Starting July 1, 2014 the tax withholding rates for payments to nonresidents of interest, dividend and capital gains increased from the previous 20% rate to 26%.
The tax withholding for interest from Italian government bonds remains unchanged at 12.5%.
Italy New Tax Withholding Rates
July 2014
Starting July 1, 2014 the tax withholding rates for payments to nonresidents of interest, dividend and capital gains increased from the previous 20% rate to 26%.
The tax withholding for interest from Italian government bonds remains unchanged at 12.5%.
Italy Film Industry Incentives
November 2013
According to a law published on October 8, 2013 the tax incentives for investors in the Italian film industry, including production and distribution, will be in effect permanently from January 1, 2014.
A 30% tax credit will be granted also to investors in musical activities in the years 2014 – 2016.
Italy V.A.T Increase
October 2012
The Italian government decided on October 9, 2012 to increase the V.A.T. rate in 2013.
Starting July 1, 2013 the standard V.A.T rate will increase from the current 21% rate to 22%.
The reduced V.A.T. rate on food and beverages will increase from the current 10% rate to 11%.
There will be no change in the 4% super reduced V.A.T rate.
Italy's 10% Tax on Financial Sector Salaries
April 2011
The Italian tax authorities issued a circular clarifying certain issues relating to the extra 10% tax imposed on bonuses and stock options in the financial sector.
The extra 10% tax which is imposed on payments exceeding three times the employee's fixed salary is effective for payments from May 30, 2010 onwards.
Italy Tax Amnesty
October 2009
The Italian parliment approved on October 2, 2009 a tax amnesty for Italian tax evaders.
According to the amnesty taxpayers repatriating undeclared illegal funds held abroad would pay a final small 5% tax rate keeping their anonimity.
The current amnesty, the third amnesty within eight years, is expected to repatriate the Italian economy about 300 billion Euro, mainly from illegal funds held in Switzerland and Luxembourg.
The new amnesty is meeting a strong resistance from the Italian oppostion claiming that the amnesty is a reward for the organised crime and the local mafia.
In other countries, e.g. the US and the UK tax evaders must pay under amnesty plans the full tax due, not enjoying anonimity.
Italy Tax Rates 2009
May 2009
There are no changes in the main tax rates compared to 2008.
The personal income tax rates ,the corporate income tax rate and the V.A.T rates, both standard and reduced rates, remain the same as in 2008.
Italy Reduced Corporate Tax Rate 2008
March 2008
From 1.1.2008 Italy's corporate tax rate is 27.5%, plus local taxes, IRAP ,of 3.9%, bringing the effective tax rate to 31.4%, compared to 33% in 2007.
Personal income tax rates are 23%-43%.
The standard VAT rate for 2008 is unchanged, 20% as in 2007.
There are also reduced VAT rates of 10% and 4%.
From 1.1.2008 the withholding tax for dividends paid by an Italian company to EU or EEA residents is 1.375% instead of 27%, subject to certain terms.
The previous thin capitalisation rules were abolished.
From 1.1.2008 interest expense is deductible up to 30% of the income before interest and depreciation expenses.
Italy Income Tax
January 2007
In 2007 Italy has 5 tax rates for individuals, including 3 new tax rates of 27%, 38% and 41%.
Italy's 2007 corporate tax rate remains the same as in 2006, 33%.
From 2007 nonresidents too are allowed to family dependents deductions, subject to terms.
Italy Income Tax
September 2006
Italy Share Options Tax
July 2006
According to a new tax decree employees receiving share options after 4.7.2006 have to pay ordinary income tax on the difference between the sum paid by the employee to the share market value on the date of assignment.
Italy Income Tax 2006
JANUARY 2006
In 2006 Italy's personal income tax rates and the deductions for family dependents remain the same as in 2005.
Italy Income Tax
JANUARY 2005
The Italy government proposed new individual income tax rates.
The new rates took effect from 1.1.2005
| INCOME(EUR) | TAX(%) |
|---|---|
| 0-26,000 | 23 |
| 26,000-33,000 | 33 |
| 33,000-100,000 | 39 |
| 100,000 and above | 43 |
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