Foreign Exchange Control: None, although currency held may need to be declared.
Accounting Principles: Italian GAAP and IFRS/IAS in place. Financial statements prepared annually.
Business Entities: Principally, joint stock company, limited liability companies and branches of foreign corporations.
Residence: If management, control or the majority of business activity is centered in Italy for more 183 days of a fiscal year.
Basis: Residents are taxed on worldwide income; non-residents are taxed on Italian-source income only.
Foreign Tax: A tax credit is allowed against Italian net tax for foreign taxes paid on foreign income.
Other: Capital grants, easy-term loans and tax credits available.
Tax Year: Taxpayers may use the calendar or financial year.
Residence: Residents taxed on worldwide income, non-residents taxed on Italian-source income only (resident if domiciled in Italy for > 183 days in a year or registered on the Italian Civil Registry).
Rate: Progressive up to 43%. Additional regional taxes may be applied as well as a municipality tax.
Capital Gains: Nonqualified dividends and certain capital gains are charged at a flat rate of 20%. Qualified dividends and capital gains are subject to 49.72%.
Other: Stamp duty: levied on legal and banking transactions
Real property: Average of 0.76% of value of the property
Inheritance tax: varies from 4% to 8% with exemptions
Financial assets held abroad are taxed
VAT: Standard rate 22%
Member Firm: Studio Benettie Associates