Italy Corporation Tax Calculator 2020

The Italy Corporation Tax Calculator is designed to allow free online calculations for resident and non-resident companies, banks / financial institutions and non-operating entities who have accrued income from profits in Italy. The calculator allows corporation tax calculations for multiple scenarios including rates and allowances tailored for tax filing status, profit amounts and allowances in 2020.

This corporation tax calculation provides you with two important pieces of financial information, the first is the amount of corporation tax you owe on profits generated in Italy, the second is the net amount of profit after tax which allows you to view exactly how your business investments in Italy are performing. Once you have calculated the corporation tax due, you can print the document or email the corporations tax document to yourself or a colleague for later reference.

Italy Corporation Tax Calculator 2020

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How to calculate Corporation Tax in Italy

Italy Corporation Tax Calculator. This image shows the Italy flag and information relating to the corporation tax rate formula used for calculating Corporation Tax in Italy using the Italy Corporation Tax Calculator in 2020

You can calculate Corporation Tax in Italy for resident and non-resident companies by multiplying the profits acrued by the appropriate corporation tax rate. We have included the Corporation Tax formula for Italy so that you can calculate corporation tax manually or update your systems with the relevent corporation tax rates in Italy. The latest corporation tax rates in Italy for 2020 are displayed in the Italy tax tables. For those who prefer to use the Italy Corporation Tax Calculator rather than calculate the tax manually, we have included a step-by-step guide to using the calculator for Corporation Tax calculations (see the guides under "How to use the Italy Corporation Tax Calculator").

Italy Corporation Tax formula

Corporation Tax in Italy is calculated using the following Corporation Tax formula:

Corporation Tax = a x (b / 100)

Where:

  • a = The net profit earned that is subject to tax in Italy.
  • b = The relevent rate of corporations tax in Italy associated with business type.

Corporation Tax Rates in Italy

Corporation tax in Italy is charged at a flat rate with the rate varying depending on the type of business subject to corporation tax. The table below defines the corporation tax rates applicable for each company type based on residence.

Italy Corporation Rates in
RateDescription
ResidentNon-Resident
24%0%Corporation Tax on Global Income (General Company)
27.5%0%Corporation Tax on Global Income (Bank / Other Financial Institution)
34.5%0%Corporation Tax on Global Income (Non-operating Entity)
24%24%Corporation Tax on Italien Based Income (General Company)
27.5%27.5%Corporation Tax on Italien Based Income (Bank / Other Financial Institution)
34.5%34.5%Corporation Tax on Italien Based Income (Non-operating Entity)
3.9%3.9%IRAP on Italien Based Income (General Company)
4.65%4.65%IRAP on Italien Based Income (Bank / Other Financial Institution)
3.9%3.9%IRAP on Italien Based Income (Non-operating Entity)

Corporation Tax Compliance: Accounting Records Retention Policy in Italy

The Italian Revenue Agency legislates that accounting records must be retained for minimum mandatory periods based on specific scenarios, these are detailed below:

  • 5 years following the year of filing the return of income yearly.
  • 7 years if the relevant tax declaration has not been lodged.
  • 10 years for compliance with civil law.

Given the above stipulations, a company is best advised to retain its accounts for 10 years when operating in Italy.

Basis of Coporation Tax

Similar to PIT, Resident entities are taxed on worldwide income and non-resident companies are subject to tax only on revenue from within Italy. Profits generated by residents on foreign source are taxed as per corporate tax regime.

How to use the Italy Corporation Tax Calculator

You can view the calculator inline or full screen. The inline view displays the calculator surrounded by the normal menus and links to other tools and supporting information. The full screen view removes or the unnecessary information so you can focus solely on using the Italy Corporation Tax Calculator. The following step-by-step guides to calculating corporation tax online with the Italy Corporation Tax Calculator covers all the functions within the corporation tax calculator:

How to complete a Corporation Tax Calculation

  1. Select Normal View or Full Screen View.
  2. Select Resident Company on Non-resident Company
  3. Confirm the type of company that you run in Italy for Corporation tax purposes.
  4. Enter the total amount of Global Income that is profit.
  5. Enter the total amount of Income generated in Italy that is profit.

The Corporation Tax Calculator will then automatically calculate the tax due based on the details entered.

More Good Calculators for Italy

If you found this information about Corporation Tax in Italy useful and liked our free online corporation tax calculator for Italy then you will probably find the following calculators and supporting Italy tax tables useful.