Income Tax
Company Tax
Rates And Allowances
Property Related Tax
VAT - IVA
| NEW INCOME TAX REGIME - income from tax year 2003 onwards | ||
| From (euro) | (To euro) | % |
| 0 | 15,000 | 23 |
| 15,000 | 29,000 | 29 |
| 29,000 | 32,600 | 31 |
| 32,600 | 70,000 | 39 |
| 70,000 | + | 45 |
| OLD INCOME TAX REGIME | ||
| From (euro) | (To euro) | % |
| 0 | 10,329.14 | 18 |
| 10,329.14 | 15,493.71 | 24 |
| 15,493.71 | 30,987.41 | 32 |
| 30,987.41 | 69,721.68 | 39 |
| 69,721.68 | + | 45 |
Safeguard clause (Clausola di Salvaguardia)
For income in the tax years 2003 and 2004, the taxpayer may elect to be taxed according to the old regime, including tax deductions, if this produces a lower tax burden.
Application of new tax regime to employees
This will take effect from 1st January 2005.
Tax on
capital gains
| TYPE OF CAPITAL GAIN | TAX RATE |
| Individual- general | 12.5% |
| Company- general | 12.5% |
| Holding in quoted company (Note 1) | 27 % |
| Holding in non-quoted company (Note 2) | 27% |
Note 1: Sale of more than 2% of capital conferring voting rights or more than 5% of issued share capital.
Note 2: Sale of more than 20% of capital conferring voting rights or more than 25% of issued share capital.Indexation allowance
An allowance is given to adjust for inflation between purchase and sale.Relief of capital losses
Capital losses may be offset against gains in the current year, or carried forward for up to five years.
These notes are
for reference purposes only. They are only intended as a guideline and
should not be used as a substitute for proper professional advice.
Please contact us and we
will be happy to assist you.
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