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
According to the proposed Italian budget for 2007, individual's income tax rates would remain the same, with changes in the tax brackets, implying additional tax payments for taxpayers with high income.
The budget also proposes introducing a single tax rate of 20% for capital gains, including interest and dividend income.
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
