Italy: New corporate income tax | KPMG | GLOBAL

Italy: New corporate income tax, regional tax measures enacted

Italy: New corporate income tax

The Budget Law 2018 (published in the official gazette no. 302, on 29 December 2017) was generally effective 1 January 2018; however, many provisions have specific effective dates.

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There are changes to the corporate income tax law (IRES) and the regional tax (IRAP) included in the new law, such as:

  • Extension of the “extra” (bonus) depreciation and amortization of certain tangible and intangible assets 
  • Extension of the step-up regime to equity interests held in foreign companies
  • Corporate income tax (IRES) rate and deduction of interest expenses for investment companies (SIMs)
  • Postponed deadline for electronic submission of tax returns (Redditi, IRAP, 770) and the Certificazione Unica (CU)
  • Reduction in the interest expense deduction
  • Extension of the step-up regime for the cost of land and unlisted shares 
  • New taxation of dividends and capital gains on qualifying shares
  • Amendments to the taxation of dividends from a “tax haven”
  • Amended definition of permanent establishment
  • New “web tax” on digital services
  • Full deduction, for IRAP purposes, of the cost of “seasonal workers”

 

Read a January 2018 report [PDF 211 KB] prepared by the KPMG member firm in Italy

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