In this page:
Accounting Rules |
Tax Rates |
Intellectual Property |
Legal Framework |
- Tax Year
The tax year begins on 1 January and finishes on 31 December of the same year.
- Accounting Standards
Since November 2001, the organization in charge of the harmonization and control of accounting standards has been the Italian Accounting Organization (Organismo Italiano di Contabilità - OIC). The OIC replaces the "Commissione Paritetica per la Statuizione dei Principi Contabili", a commission controlled by the Italian competent accounting body and which has published 30 accounting standards. Italian accounting standards do not have force of law.
- Accounting Regulation Bodies
- Accounting Reports
Italian companies must draw up the following documents in their financial statements:
- the balance sheet;
- the profit and loss accounts;
- the notes to the accounts;
- the annual report.
- Publication Requirements
The annual report, the audit report, the financial statements and a copy of the minutes of the AGM must be filed with the company register 30 days after the AGM.
Unlimited liability companies are not obliged to publish their accounts.
Companies listed on the Stock Exchange must draw up quarterly financial statements.
Unlimited liability companies (SNC, SAS) only have to draw up a balance sheet and a profit and loss account, with no obligatory form.
Small companies are authorized to draw up financial statements in a shorter form.
- Professional Accountancy Bodies
CNDCEC , National Council of Professional Accountants
INRC , National Institute of Auditors
- Certification and Auditing
The Civil Code obliges limited liability companies whose capital is more than 120,000 EUR to appoint, at the AGM (Assemblea dei soci) an audit committee (collegio sindicale) of three to five members who give an account of their audit in an annual report included in the financial statements of the company. This committee is appointed for three years and may be prolonged indefinitely. Since 2004, a "collegio sindicale" must contain at least one revisore contabile. The law does not impose any particular model of presentation of the audit report.
Companies listed on the Stock Exchange must have their accounts audited by external independent auditors (società di revisione).
The National Committee for companies and the Stock Exchange is an independent administrative authority whose role is to protect investors.
- Accounting News
Fiscooggi.it, Italian tax agency publications
- Nature of the Tax
IVA (Imposta sul Valore Aggiunto)
- Tax Rate
- Reduced Tax Rate
There are reduced rates of VAT of 4% and 10% on basic products.
A rate of 10% is applied to some foodstuffs, live animals, some fuel supplies, catering, transport and housing.
A rate of 4% is applied to some foodstuffs, imports of agricultural products, medical supplies, books, e-books and magazines.
- Other Consumption Taxes
Other taxes are determined at the national or local level such as taxes on tobacco, petrol, alcohol, oil, etc.
Learn more about Service Providers in Italy on Globaltrade.net, the Directory for International Trade Service Providers.
- Company Tax
The calculation is different for banks, insurance companies and other financial intermediaries.
- Tax Rate For Foreign Companies
Resident companies are taxed on the basis of their global revenue. Non-resident companies are taxed on the basis of their income earned in Italy.
- Capital Gains Taxation
Capital gains are generally treated as ordinary income and taxed at the 27.5% corporate income tax rate.
- Main Allowable Deductions and Tax Credits
Research expenses. Royalties on intellectual property such as patents and trademarks. Expenses for advertising and entertainments. For additional information, consult the Italy's Tax System on the National Agency for Investment's website.
- Other Corporate Taxes
The Municipal Tax is levied on real estate property.
- Other Domestic Resources
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.
Country Comparison For Corporate Taxation
|Number of Payments of Taxes per Year
|Time Taken For Administrative Formalities (Hours)
|Total Share of Taxes (% of Profit)
- Last Available Data.
|The income tax rate
||Progressive up to 43%
|EUR 0 - 15,000
|EUR 15,001 - 28,000
|EUR 28,001 - 55,000
|EUR 55,001 - 75,000
|EUR 75,001 and over
||3% on all income exceeding EUR 300,000 (applies until 2014).
- Allowable Deductions and Tax Credits
Maintenance allowance; university expenses; medical expenses (if they are over 129 EUR); dependent elderly or disabled persons; etc.
- Special Expatriate Tax Regime
Expatriates living in Italy will be classified as a Resident or Non-Resident. Non-residents are only taxed on income and gains arising in Italy, compared to worldwide income and gains for residents. Individuals are considered residents if:
- for a period of 183 days they are registered with the registry office of the Population Registry (Anagrafe);
- for a period of 183 days has their principal place of business or residence in Italy;
- for a period of 183 days has his centre of vital interest (i.e. his family) in Italy.
Double Taxation Treaties
- Countries With Whom a Double Taxation Treaty Have Been Signed
See the list of the signed fiscal treaties
- Withholding Taxes
Dividends: 27%; Interest: 12.5%/27%; Royalties: 15% if resident and 22.5%/30% if non-resident.
Learn more about Taxes and Accounting in Italy on Globaltrade.net, the Directory for International Trade Service Providers.
- Independence of Justice
- Equal Treatment of Nationals and Foreigners
In the legal texts, there is no discrimination against foreigners. In practice, however, there is a degree discrimination.
- The Language of Justice
- Sources of the Law and Legal Similarities
The Italian Civil Code was created on the basis of Roman law modified by the Napoleonic Code. It is also modeled on German law. The highest law is the Constitution.
- Checking National Laws Online
The constitution in 5 languages
Codes in Italian
Learn more about Lawyers and Legal in Italy on Globaltrade.net, the Directory for International Trade Service Providers.
- General Information
Doing Business in Italy
Italian culture and customs
- Opening Hours and Days
Saturday and Sunday closed, or only Sunday and Monday morning for trade.
|New Year's Day
|Easter Sunday and Monday
||First Sunday after the first full moon of spring
|Liberation Day (National holiday)
|Funding of the Republic
|Christmas and St Stephen's Day
||25 and 26 December
||Second and third week of August
- Holiday Compensation
When a public holiday falls on a Sunday, some shops are closed the Monday after.
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Last Updates: November 2014