Italy is to pass a flat tax for companies next year the new government announced Monday. Flat taxes will be introduced for familes also but there are conflicting reports on when.
Italy is to pass a flat tax for companies next year the new government announced Monday. Flat taxes will be introduced for familes also but there are conflicting reports on when.
League Senator Alberto Bagnia said on TV “it looks like there is an agreement to start with the flat tax on companies’ income next year… so in the first year for companies only, while in the second year it’s to be applied to the families.”
However League politician Armando Siri said Italy would also pass the flat tax for families in 2019. “It’s not true that starting from next year the flat tax will come into force only for companies, rather it will also apply to families,” The flat tax would apply to familes with 2 children or more. it was reported by varying Italian sources.
Siri (No not Apple’s Siri) said it will cost around EUR 30 billion
Currently taxation of an individual’s income in Italy is progressive with income. In 2018 the tax rate for an individual is between 23%-43%, In addition to direct taxation (IRPEF), there is also a regional tax of 0.7%-3.33% and a municipal tax of 0%-0.9%. There are reduced rates of tax and tax exemptions available to certain income earners.
The standard rate of Italy corporate tax (IRES) in 2018 is 24%. Local tax (IRAP) is imposed at a rate of generally 3.9%, bringing the effective tax rate to 27.9%. Banks and financial companies pay 27.5% corporate tax.