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Italy
Overview
Last reviewed - 05 February 2024Italy, which is located along the Mediterranean Sea in Southern Europe, became a nation-state in 1861 when the regional states of the peninsula (along with Sardinia and Sicily, the two largest islands in the Mediterranean Sea) were united under the Kingdom of Italy. After the Second World War, in 1946, a popular referendum abolished the monarchy and proclaimed Italy a parliamentary republic.
Italy is composed of 20 administrative regions, with Rome as the capital. It has a population of about 60 million, and its territory covers about 301,000 square kilometres. The official language of Italy is Italian, and the currency is the euro (EUR).
Italy has a diversified economy, which is divided into a developed industrial north, featuring many private companies, and a less-developed south. The economy is driven in large part by the manufacture of high-quality consumer goods produced by small and medium-sized enterprises, many of which are family owned. Due to its archaeological and artistic heritage, tourism is one of the most important sectors.
Italy is a founding member of the European Economic Community (EEC) and North Atlantic Treaty Organization (NATO). It is also a member state of the United Nations (UN), World Trade Organization (WTO), and Organisation for Economic Co-operation and Development (OECD).
PwC Italy supports clients with the local knowledge and skills of its people and with access to a broad range of other professionals across the PwC global network of firms.
In particular, PwC Tax & Legal has 17 offices in Italy with more than 900 professionals and is active in local and international markets providing tax and legal services. The covered areas are: corporate income tax, indirect tax, international tax, legal, mergers and acquisitions, tax accounting, tax controversy and dispute resolution, transfer pricing, etc.
Quick rates and dates
| Corporate income tax (CIT) rates | |
|---|---|
| Headline CIT rate (%) |
24 |
| Corporate income tax (CIT) due dates | |
|---|---|
| CIT return due date |
By the end of the 9th month after the tax year-end. |
| CIT final payment due date |
The last day of the sixth month following the tax year-end. |
| CIT estimated payment due dates |
Advance payment: 1) 40% by the last day of the sixth month following the tax year-end, 2) 60% by the end of the 11th month following the tax year-end. |
| Personal income tax (PIT) rates | |
|---|---|
| Headline PIT rate (%) |
43 |
| Personal income tax (PIT) due dates | |
|---|---|
| PIT return due date |
30 September or 30 November, depending on filing status. |
| PIT final payment due date |
30 June of the following year. |
| PIT estimated payment due dates |
30 June and 30 November of the current year. |
| Value-added tax (VAT) rates | |
|---|---|
| Standard VAT rate (%) |
22 |
| Withholding tax (WHT) rates | |
|---|---|
| WHT rates (%) (Dividends/Interest/Royalties) |
Resident: 0 / 0 or 26 / 0; Non-resident: 26 / 26 / 30. |
| Capital gains tax (CGT) rates | |
|---|---|
| Headline corporate capital gains tax rate (%) |
Capital gains are subject to the normal CIT rate. For financial investments, the PEX regime at 95% exemption may be applied, provided that the conditions set by the law are met. |
| Headline individual capital gains tax rate (%) |
Capital gains are subject to separate taxation at 26% (normal PIT rate applies in certain instances). |
| Net wealth/worth tax rates | |
|---|---|
| Headline net wealth/worth tax rate (%) |
Wealth tax on real estate properties owned outside of Italy (IVIE): 0.76%; Wealth tax on investments owned outside of Italy (IVAFE): 0.2%. |
| Inheritance and gift tax rates | |
|---|---|
| Headline inheritance tax rate (%) |
8 |
| Headline gift tax rate (%) |
8 |
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