Generally coincides with the calendar year (a tax period other than the calendar year is possible).

Companies with production operations/office or administrative office in Italy are subject to taxation in Italy.

Tax rate: 24% on tax profit.
The taxation is final. No tax credit is imputed to the partners.

Tax rate: 3.9 percent on operating income before personnel costs (regions may provide a surcharge).

• Resident companies: 5% of the distributed profit contributes to the tax base; in certain cases it is possible to opt for transparency taxation;
• Non-resident companies: withholding tax of 26 percent or a reduced rate, if provided by the relevant Bilateral double taxation treaty; exemption from withholding tax in case o f application of EU parent-subsidiary directive.

• Resident companies: contribute 5% of the capital gain to the tax base if  certain requirements concur (“participation exemption”), otherwise ordinary taxation;
• Non-resident companies: generally no taxation of the capital gain in Italy in application of the relevant bilateral double taxation avoidance treaty.

• Loss carryover: unlimited carryover of losses from the first 3 tax periods; carryover limited to 80% of the profit for the period for losses of tax periods after the first three
• In the case of tax consolidation: there is the possibility of adding up the taxable bases of individual companies in the same group; as a result, the losses of one company in the group with profits of another company in the group.

Straight-line depreciation based on purchase cost or internal production cost.

• Buildings: 3%;
• Land: it is not depreciated;
• Plant and machinery: 6-17.5%;
• Software: 50%
• Goodwill and trademarks: 5.55%;
• Industrial and commercial equipment: 12-40%;
• Passenger cars: 25%;
• Trucks: 20%.

Interest expense is deductible to the limit of 30 percent of ROL (=gross operating income from ordinary operations before depreciation, amortization and lease payments); excluded from application are banks, insurance companies, finance companies and real estate management companies.

Ordinary rate: 22%; reduced rates: 4%, 5% and 10%.

In general, the exemption from VAT and the application of proportional registration tax (9%) as well as the mortgage tax of EUR 50 and cadastral tax of EUR 50 apply.

If VAT is applied by construction companies (transfers within five years or by option), the reverse charge and registration tax of 200 euros as well as mortgage tax of 50 euros and cadastral tax of 50 euros are applied.

In general, VAT exemption and the application of fixed registration tax applies except for transfers between private individuals.
If VAT is applied by construction companies (transfers within five years or by option), the reverse charge and registration tax of 200 euros is applied.

Mortgage tax of 3 percent and cadastral tax of 1 percent then applies unless transfers between private individuals.

Buildings, partly also ground-fixed installations (e.g. wind and photovoltaic installations), and building areas are subject to the single municipal tax, which varies depending on the municipality from 0.86 percent to 1.06 percent. The taxable base is the value of the property, which is determined on the basis of the cadastral rent assigned.