Taxes

 

Which are the main taxes for the incorporation of a company in Italy?

In the event of the incorporation of a company, a registration tax applies with regards to contributions made by share / quotaholders in order to form the share capital. In the event of the contribution of real estate properties, also mortgage and cadastral taxes apply. The amount of registration tax varies according to the nature of the items contributed.

Among non-fiscal costs, it is important to consider the fees applied by the Public Notary to draw up the incorporation deeds. These may vary depending on the value of the deed.

More info: http://www1.agenziaentrate.gov.it/english/

 

 

Starting a commercial activity in Italy: what are the main tax consequences of operating through a corporation or a branch?

 

For income tax purposes

Assuming that the presence and the activity of the transferred individual do not create any permanent establishment issue in Italy, the individual is liable to Italian income taxes on the basis of his/her tax residency status” to be determined in accordance with Section 2 of the Italian Income Tax Code. An individual is considered residentfor tax purposes if, for the greater part of the fiscal year (i.e.: at least 183 days):

  • is registered with the Registry of the Italian Resident Population (“Anagrafe”); or
  • has his/her “domicile” in the territory of the Italian State, as defined by Section 43 of the Italian Civil Code (the place where the individual as his/her economic, social and family center of interests);
  • has his/her “residence” in the territory of the Italian State, as defined by Section 43 of the Italian Civil Code (the place where the individual has declared their habitual abode).

 

Taxation of resident individuals:

Resident individuals are subject to the Italian personal (or national) income taxes on their income wherever produced (under the so called ‘worldwide principle’). Therefore, residents are also subject to taxation on income deriving from real estate owned outside of the Italian territory, foreign dividends and interests, foreign compensations and director’s fees and other types of foreign income.

In addition to the personal income tax, Italian legislation, as of fiscal year 2012, has introduced for individuals resident in Italy a ‘wealth tax’ on investments which are located outside of the Italian territory (called “IVAFE” for financial investments owned outside of Italy and “IVIE” for real estate investments).

 

Taxation of non-residents:

Individuals who are non-residents are subject to PIT (IRPEF) only on income arising from Italian sources (i.e. income earned in Italy). Therefore, foreign income is not relevant for the purposes of taxation in Italy; this applies to both income and wealth tax.