What Taxes in Rome

How Taxes Work in Rome

Sponsored links

Companies generally self-assess tax returns, which mean that they calculate independently the taxes to be paid to the Revenue Agency. Do not try to assess your taxes returns by yourself. The Italian taxation system is byzantine, to say the least. You are going to need a commercialista to do your accounting for you, so your first step, before opening your business, is to find a good one.

Taxes are divided into two groups: direct taxes and indirect taxes.
Direct taxes are related to the company's profitability, and so they are calculated according to the company's income. The main ones are:
- Personal income tax (IRPEF), applied to revenues of sole proprietorships, partnerships (simple, general and limited partnerships);
- Corporate income tax (IRES), applied to the revenues of business corporations.
- Italian regional tax on productive activities (IRAP), applied to sole proprietorships, partnerships and business corporations.

Indirect taxes are applied to specific transactions carried out by the company and not linked to the company's revenue. The main ones are:
- Value-added tax (VAT);
- Registration fee applied to specific transactions such as transfer of movable and immovable property, when value-added tax is not applied.

The main legal framework regulating value-added tax (VAT) is Decree n.633 of 26th October 1972.
Along with the main taxes, which are applied on a national level, there are also other Rome based taxes. The most important ones are: tax on municipal solid waste management, tax for the occupation of public areas and communal tax on advertising.
Direct taxes are paid twice a year, while the value-added tax (VAT) is paid once a month if your income is above a certain level, otherwise you can opt for a 3 month or 6 month payment. Companies which have a high turnover pay taxes more often. Your commercialista will tell you your due dates according to your income level.
Value-added tax (VAT) and IRAP must be paid, periodically using the F24 form. This is also used for payments regarding social security and welfare contributions.
Citizens and businesses can submit their declarations online using the Fisconline service of the Revenue Agency. This means that they can carry out all the necessary tax payments online, including filing declarations, registering contracts for lease and consulting their personal fiscal information.
The fiscal guide for foreigners provides the main fiscal information and instructions for carrying out the most important administrative tasks regarding the taxpayers' code, VAT number, tax refunds, irregularities in income tax returns, payment files and inheritance.

Print, send by e-mail, recommend in your social networks: share and enjoy
Condividi Tweet