Taxes on corporate income
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.
Corporate entities, such as capital companies, trusts, mutual companies, are subject in Italy to a 24% corporate income tax (Ires).
Non-resident companies are taxed only on Italian-source income. The income earned by companies not resident in Italy for tax purposes through a permanent establishment is considered as Italian source income and is therefore subject to Ires.
Irap - Regional production tax
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%.