Italy Tax Compliance Map

Email: mxp4ww@evershinecpa.com
The Engaging Manager from Headquarter
Ms. Anna Wang, Speak Italian, English and Chinese.
skype: burlinna

GLA – Italy Corporate Income Tax

GLA-IT-01

GLA Tax Entity

Is Italy corporate income tax a national income tax? A local income tax? Or is there a national and local income tax?
What if the national income tax and the local income tax are levied separately or levied together?
What is the standard tax rate? What is the special tax rate?

Evershine RD:

Most taxes are imposed by the state, although local governments (i.e., regions, provinces, and municipalities) impose certain minor taxes.
The corporate income tax (IRES) rate is 24%.
An additional tax (IRAP) of 3.9% is added for most companies.

GLA-IT-02

Registration

Which government unit is responsible for the collection of Italy corporate income tax?
The registration of the country’s corporate income tax status, that is, the tax certificate number application procedure, paper certificate number application? Or online account application? URL?
What is the advance certificate number for applying for this certificate number?
Do I need to use the industrial and commercial certificate electronic card to apply?

Evershine RD:

The main government agencies with operating roles in the administration of the tax system are the following:

• The Revenue Agency is responsible for administering and collecting direct taxes, VAT and other taxes, for carrying out tax inspections and assessments, and for managing tax disputes.
• The Revenue-Collection Agency is responsible for the collection of national and local taxes.

Each agency is represented in the territory by local offices.
Companies register with the Business Register of the Chambers of Commerce are assigned a Codice Fiscale (CF) or Tax Code

GLA-IT-03

GLA Order (OD)

What is the order of Italy corporate income tax return (information flow determines tax base) and payment (fund flow)?
Pay first and then declare? Report first and then pays? At the same time as the declaration and payment?

Evershine RD:

Deposit first (DF). Pay by installment first and declare later.

GLA-IT-04

Mechanism of Filing (MOF)

What is the return method for Italy corporate income tax return (information flow determines the tax base)?
Filing cycle: monthly? Every bimonthly? Every season? every half year? Per year? Electronic filing? Manual filing? Electronic filing and manual filing coexist? If electronic filing is possible: website URL?

Evershine RD:

Company must file their corporate income tax return (for IRES and IRAP purposes) electronically within 11 months from the end of the financial year (i.e., November 30).
Tax returns must be filed electronically.
Taxpayers can use the free software provided by the Italian Revenue Agency for the completion of the corporate income tax return.
Once completed, the tax return must be submitted online via the Revenue Agency’s online services portal.
For taxpayers to be able to access the online services, they must obtain the following credentials:

• Public Digital Identity System credentials;
• Revenue Agency online service credentials; or
• A National Service Card.

Once the tax return has been submitted, the electronic system will issue an acknowledgement of receipt of the file.
If no errors are detected, the system will send a notification to the taxpayer confirming submission of the tax return.

GLA-IT-05

Mechanism of Payment (MOP)

What is the funding method for Italy corporate income tax payment (funds flow)?
Payment cycle: M per month? B every bimonthly? Q every season? H every six months? A every year?
Automatically authorize deduction of ACH (that is, take the initiative of the recipient)?
Electronic remittance to EFT (that is, the payer takes the initiative)?
Bank counter payment OCT?Or the above methods coexist?

Evershine RD:

Two advance payments or installments are due for IRES and IRAP purposes.
The payment should be equal to 100% of the tax liability for the previous tax period.
The installments are payable as follows:

• 40% due by the last day of the 6^th month after the end of the tax year; and
• 60% due by the last day of the 11^th month after the end of the tax year.

Settlement payments may also be required.

In addition, companies subject to the synthetic indices of tax reliability (ISA), the installments above are split into two payments:

• 50% due by the last day of the 6^th month after the end of the tax year (i.e., June 30 for calendar year companies); and
• 50% due by the last day of the 11^th month after the end of the tax year (i.e., November 30 for calendar year companies).

Companies must pay taxes electronically, via the “F24” payment form.

VAT – Italy VAT

VAT-IT-01

VAT Tax Entity

Is Italy VAT National VAT? Local VAT? Or is there a national plus Local VAT?
What if the National VAT and Local VAT are levied separately or levied together?
What is the standard VAT rate? What is the special VAT rate?

Evershine RD:

Italy is an EU Member State.
VAT legislation has been harmonized across the EU in many respects, including in Italy.
Italian VAT is primarily governed by Presidential Decree No. 633 of October 26, 1972 (the “Italian VAT Law” or “VAT Law”.
In Italy, the following VAT rates apply:
Standard rate: 22%
Reduced rates: 10% (first reduced rate), 5% (second reduced rate) and 4% (super-reduced rate).
Other: Zero rate and exemptions

VAT-IT-02

Registration

Which government unit is responsible for the levying of VAT in Italy?
The registration of Italy’s VAT levy status, that is, the application procedure for VAT certificate number, paper certificate number application? Or online account application? URL?
What is the advance certificate number for applying for a VAT certificate number?
Do I need to use an industrial and commercial certificate electronic card to apply?

Evershine RD:

Administrative oversight of Italian VAT is carried out by the Italian Ministry of Finance and the Central Directorate of the Italian Revenue Agency.

Local VAT offices are responsible for day-to-day VAT administration.
Entrepreneurs must register for VAT in Italy with the office of the Italian Revenue Agency for the district in which they start operations within 30 days of establishing a business enterprise or permanent establishment in Italy.
The business enterprise is deemed to be established when at least one sale or purchase that is relevant for Italian VAT purposes is carried out.
Companies register with the Italian Register of Companies, can use a single communication (“ComUnica”) for VAT registration, company registration, social security purposes, etc.
A link to the ComUnica portal is http://www.registroimprese.it/comunicazione-unica-d-impresa.
VAT Registration form is “Mod. AA7/10”.
The form can be filed in hard copy or electronically.
A link to the e-filing portal of the Italian Revenue Agency is https://telematici.agenziaentrate.gov.it/Abilitazione/Registrati.jsp
Once a VAT registration application is processed, the Italian Revenue Agency issues a VAT identification number in the format “IT12345678901”.

VAT-IT-03

WWT Order (OD)

What is the order of Italy’s VAT declaration (information flow determines the tax base) and payment (fund flow)?
Pay first and then declare? First declare and then pay?
 At the same time as the declaration and payment?

Evershine RD:

Deposit first (DF). Pay by installment first and declare later.

VAT-IT-04

Mechanism of Filing (MOF)

What is the return method for Italy VAT declaration (information flow determines the tax base)?
Reporting cycle: every month? Every bimonthly? Every season? every half year? Per year? Electronic filing? Manual filing? Electronic filing and manual filing coexist? If electronic filing is possible: Website URL?

Evershine RD:

Italian VAT statements are generally due on a quarterly basis.
The VAT statement is generally due by the last day of the second month following the quarter.
However, the statement for the second quarter is due by September 16.
Taxpayers may opt to submit their fourth quarter return alongside the annual declaration, in which case both must be filed by the end of February of the following calendar year.
Taxpayers are required to submit their annual Italian VAT returns, Mod IVA, between February 1 and April 30 of the year following the year being reported on.
Electronic filing is mandatory for all taxpayers. Paper forms are not accepted.
To file electronically, taxpayers must be registered with the online telematics services portal of the Italian Revenue Agency.

VAT-IT-05

Mechanism of Payment (MOP)

What is the funding method for Italy VAT payment (funds flow)?
Payment cycle: M per month? B every bimonthly? Q every season? H every six months? A every year?
Automatically authorize deduction of ACH (that is, take the initiative of the recipient)?
Electronic remittance to EFT (that is, the payer takes the initiative)?
OCT payment at the bank counter? Or the above methods coexist?

Evershine RD:

VAT must generally be paid monthly on the 16^th day of the month following the end of the VAT period, using a Form F24.
An advance payment of VAT is due in relation to the last period of the relevant year by December 27 of the year.
Advance payments are calculated using one of the three following methods:

• The historical method, under which the advance payment is equal to 88% of the payment made or that should have been made, for the last month or quarter of the previous year;
• The forecast method, under which the advance payment is equal to 88% of the estimated VAT due on transactions that are expected to be carried out through December 31; or
• The analytic method, under which the advance payment is equal to the VAT due on transactions carried out through December 20.

VAT payment is generally made by electronic means, using the e-filing portal of the Italian Revenue Agency.
The taxpayer must generally have a bank account in Italy.

Contact Us

Milan Evershine BPO Service Limited Corp
Email: mxp4ww@evershinecpa.com
The Engaging Manager from Headquarter
Ms. Anna Wang, Speak Italian, English and Chinese.
skype: burlinna

or
For investment structure relevant to multi-national tax planning and Financial & Legal Due Diligence for M&A (Merge and Acquisition), send an email to HQ4mxp@evershinecpa.com
Dale Chen, Principal Partner/CPA in Taiwan+China+UK will be accountable for your case.
LinkedIn address:Dale Chen

Additional Information

Evershine CPAs Firm Headquarter
6th Floor 378 Chang Chun Rd., Taipei City, Taiwan ROC
Partner Kerry Chen,  USA Graduate School and a well-English speaker
Tel No.: +886-2-27170515 ext. 105
Mobile: +886-939357000
Email: kerrychen@evershinecpa.com
Skype: oklahomekerry

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(version: 2024/07)

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