We offer the following services:
- Book-keeping
- Preparation and submission of VAT returns
- Preparation of either monthly, quarterly or yearly management accounts
- Preparation of accounts
- Completion and filing of company tax returns
- Registration of new businesses for tax and VAT
- Tax advice for small/medium sized businesses and individuals
BUSINESS SET UP
You can set up the following types of business in Italy:
- Limited Company Private (SRL)
- Public Limited Company (SPA)
- Partnership
- Sole Trader
All businesses have a legal requirement to keep full and complete books and records.
LIMITED COMPANIES (SRL)
SRL s must file accounts once a year with the Chamber of Commerce.
Auditors are not required unless you reach certain criteria –
For example: share capital of € 120,000 or more, turnover greater than € 8,800,000
LIMITED COMPANIES (SPA)
An SPA has a minimum share capital of €120,000 and auditors are required.
The SPA must complete accounts once a year with the Chamber of Commerce.
PARTNERSHIP
This can be between two or more individuals or companies but you do not have limited liability.
SOLE TRADER
This is when you trade as an individual
In Italy you have two main kinds of tax:
- Corporate Tax
- Personal Income Tax
Additionally you also have some other taxes for certain kinds of income such as Capital Gains Tax.
CORPORATION TAX
This is based on the profits of the business and is known as IRES.
The rate is 27.5%
In addition to the IRES there is a further 3.9 % regional tax called IRAP.
VAT
All Italian businesses must charge customers VAT on the sale of all goods and services.
The general rate is 22%. There are also 4% and 10% rates on some goods.
VAT Rules are extremely complex and must be discussed with an Accountant before a business commences.
PERSONAL INCOME TAX
All individuals based in Italy must pay taxes on income. The tax on individual incomes are called IRPEF and rates are as follows:
Income from €0 to €15,000 at 23 %
Income from €15,000.01 to €28,000 at 27 %
Income from €28,000.01 to €55,000 at 38%
Income from €55,000.01 to €75,000 at 41 %
Income after €75,000 at 43%
In addition to the IRPEF there is a regional and a local tax called Addizionale Regionale and Addizionale Comunale.
CAPITAL GAINS TAX
This is due on any sale of assets and other items of a capital nature
There is no annual exemption for individuals
The rate of tax is 27%
USEFUL LINKS
http://www1.agenziaentrate.gov.it/inglese/ Italian tax agency
http://www.mi.camcom.it/ Chamber of Commerce of Milan
http://www.rm.camcom.it/ Chamber of commerce of Rome
Enquire About Our Accountacy & Tax Services
For further information, please contact us on +44 (0)208 421 7474 or fill in the form below: