HomePage | Contact Us | About Us

Web worldwide-tax.com

Italy Tax Deductions

Relief is given mainly in the form of a credit on tax payable. Some forms of relief are granted as a deduction, that is, a reduction in the taxable income. Most relief refers exclusively to Italian residents. The following amounts are subject to the definitions in law: Class of Relief Amount - EUR Credit for Employees Up to EUR1,840 , depending on income level Burial expenses Maximum credit of 1,549 Dependent spouse Up to 800 Married parent - dependent child Up to 900 Medical expenses In excess of 129 (Max 19%) Payments for life insurance As defined by law Mortgage Inerest 19%, up to 4,000 Italy Business Deductions Losses Losses can be carried forward up to 5 years. Losses in the first 3 years of operation can be carried forward without a limit against new activities. There is no carryback for losses. Italy Consolidated Returns Consolidated returns are allowed for parent companies with their subsidiaries, when holding 50% or more. Consolidated returns, if chosen, have to be filed at least for 3 years. Italy Interest Expenses In Italy Interest expenses are deductible up to 30% of the income before interest and depreciation.

© All copyrights reserved