- 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 EUR 1,880 , depending on income level|
|Burial expenses||Maximum credit of 1,549|
|Dependent spouse||Up to 800|
|Married parent - dependent child||Up to 1,200|
|Medical expenses||In excess of EUR 129 (Max 19%)|
|Payments for life insurance||19% up to EUR 530|
|Mortgage Interest||19%, up to 4,000|
|Donations||Up to EUR 1,033 for religious institutes.|
|Alimony||No limit, only to a spouse|
|Charity||Up to EUR 1,033|
Italy Business Deductions
Losses can be carried forward and be offset against up to 80% of the current year's income.
Losses from activities in the first 3 years of operation can be carried forward without a limit.
There is no carryback for losses.
Italy Consolidated Returns
Consolidated returns are allowed, subject to terms, 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, taxes and depreciation (EBITDA).
The excess can be carried forward indefinitely.