Italian companies must pay a federal corporation tax (IRES – Imposta sul Reddito delle Società) on profits as well as regional corporation tax (IRAP – Imposta Regionale sulle Attività Produttive).
The rate of federal corporation tax (IRES) is currently 24%. The rate of regional corporation tax (IRAP) may vary from region to region and it is normally around 3,9%.
An Italian company must file a notice of its existence to the Inland Revenue (Agenzia delle Entrate) immediately after its incorporation and open a VAT position (partita IVA). An Italian company must file with the Inland Revenue a Corporation Tax Return no later than 12 months after its accounting reference date.
Italian tax resident companies must pay Italian corporation tax on their worldwide income and gains, subject to double taxation relief.
Should any corporation tax be due in Italy, this must be paid 9 months after the accounting reference date. Should either of these dates be missed then penalties and interest become payable.