Tax
Progressive IRPF-style IRPEF, corporate IRES and regional IRAP
Residents pay progressive personal income tax (IRPEF) with regional and municipal surcharges. Companies pay IRES plus the regional production tax IRAP, and a flat-rate regime is available to small businesses and professionals.
Key rules
- Residence follows registration in the population register or a centre of interests in Italy.
- Companies pay IRES together with IRAP, which has a different and broader base.
- A flat-tax regime applies to small self-employed taxpayers below a revenue threshold.
Governing law
- Income Tax Consolidation Act (TUIR) (Presidential Decree 917/1986)
- VAT Decree (Presidential Decree 633/1972)
In practice
Electronic invoicing through the Sistema di Interscambio is mandatory for domestic supplies and is enforced strictly.