🇮🇹 Tax Overview — Italy

Limited Liability Company (SRL)

Subject to IRES (Imposta sul Reddito delle Società) at 24% on taxable income, plus IRAP (Imposta Regionale sulle Attività Produttive) at 3.9% on a broader tax base that excludes personnel cost deductions in most cases, bringing the combined effective rate to approximately 27.9%. VAT (IVA) is charged at 22% on most goods and services, with reduced rates of 4%, 5%, and 10% for specific categories. Dividends distributed to individual shareholders are subject to a 26% substitute tax. Italy offers a Patent Box regime providing a 110% super-deduction on qualifying IP income and an R&D tax credit for eligible expenditures.