Regional production tax - Irap
Italian corporate entities and non-resident companies, only on Italian source income, are subject to a corporate income tax , Ires, and to a regional production tax, Irap.
The regional production tax (Irap) is a local tax on productive activities realized within a regional territory. The standard rate is 3.9%, but higher Irap rates are, for example, applicable to banks and financial institutions (4.65%) and insurance companies (5.90%).
Regional authorities have the right to increase or decrease the Irap rates within the limit of 0,92%.