#

Paying Taxes in

Italy

Below is a detailed summary of the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as administrative burden in paying taxes and complying with postfiling procedures.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 190 economies. The most recent round of data collection was completed on June 1, 2016 covering for the Paying Taxes indicator calendar year 2015 (January 1, 2015 – December 31, 2015).

Compare Italy to 189 other economies.

Tax or mandatory contribution Payments (number) Notes on Payments Time (hours) Statutory tax rate Tax base Total tax rate (% of profit) Notes on TTR
Employer paid - Social security contributions 1 online 169 26.86%-31.88% gross salaries 34.83
Corporate income tax (IRES) 1 online 39 27.5% taxable profit 14.36
Employer paid - Mandatory contribution for work termination (TFR) 0 jointly 7.61%-7.81% gross salaries 8.61
Regional tax on productive activities (IRAP) 1 online 3.9% difference between taxable revenues and deductible costs 2.69
Tax on real estate (IMU) 1 online 1.06% cadastral value of property 1.29
Tax on interest 0 26% interest income 0.67 included in other taxes
Chamber of commerce duties 1 online EUR 373 + various rates previous year turnover 0.13
Municipal service tax (TASI) 1 online 0.08% cadastral value of property 0.10
Fixed tax on legal and fiscal registries 1 EUR 516 fixed fee 0.03
Tax on check transactions 1 EUR 100 fixed fee 0.01
Value added tax (VAT) 1 online 32 22% value added and land 0.00 not included
Insurance tax 1 various rates insurance premium 0.00 small amount
Stamp duty on contracts 1 various rates pages of contracts 0.00 small amount
Advertising tax 1 various rates type of advertising 0.00 small amount
Fuel tax 1 included into fuel price 0.00 small amount
Vehicle tax 1 online various rates vehicle KW 0.00 small amount
Employee paid - Social security contributions 0 jointly 9.39%-9.49% gross salaries 0.00 withheld
Employee paid - Mandatory contribution for work termination (TFR) 0 jointly 2.08% gross salaries 0.00 withheld
Totals: 14 240 62
  • Taxes by type Answer
    Profit tax (% of profit) 17.0
    Labor tax and contributions (% of profit) 43.4
    Other taxes (% of profit) 1.9
    Answer Score
    Postfiling index (0-100) 48.4
    VAT refunds 0.0
    Does VAT/GST exist? Yes
    Frequency of VAT/GST refund submission annually
    Does a VAT/GST refund process exist per the case study? Yes
    Restrictions on VAT refund process None
    Likelihood of VAT audit Likely
    Time to comply with VAT refund (hours) 51.0 0.0
    Time to obtain a VAT refund (weeks) 86.0 0.0
    Corporate income tax audits 93.6
    Does corporate income tax exist? Yes
    Likelihood of corporate income tax audit Unlikely
    Time to comply with a corporate income tax audit (hours) 5.0 93.6
    Time to complete a corporate income tax audit (weeks) 0.0 100.0
    Administrative appeal process
    First level administrative appeal authority Tax Assessment Office
    Is the appeal authority independent? Independent department within tax office
    Are appeal guidelines accessible to the public? Yes
    Source of appeal guidelines online/in printed publication/in person at tax office
    Is there a legal time limit for the appeal authority to issue a decision on the tax appeal? No
    Legal time limit

Notes:

Name of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table.

The hours for VAT include all the VAT and sales taxes applicable.

The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.

The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit.

N/A = Not applicable.