A special tax scheme (Regime Forfettario) offers a flat rate on gross income for taxpayers looking to get themselves registered for VAT and start a self-employed business or profession.
The various schemes for small taxpayers (the Regime dei Minimi/Regime Forfettario) have seen a number of changes over the years and some of the old rules continue to apply to people who started out in earlier years.
But from FY 2016 onward there is only one regime open to new taxpayers – the Flat–Rate Scheme. This Scheme was updated in December 2018, with the main result that the threshold was increased to Euro 65,000. It was further updated at the end of 2022 with the result that the annual threshold is now Euro 85,000. The 5% reduced rate for the first five years remains for start-ups. Please get in touch with us if you want to check if you qualify.
The Flat Rate Tax Scheme is optional, so taxpayers (who are not already registered under an older scheme) should indicate in advance when registering for VAT, and must confirm the option in their first annual tax return after registering, whether they wish to take the benefit of the scheme. If they do not then they will be subject to tax on their net profit at the usual scale rates.
Our Italian Tax Return and Payment Support Service
Modello Redditi PF The tax return is called “PF” standing for Persone Fisiche (individuals). Modello in Italian means “Form”. The PF form is for use by individuals who are not able to present the simplified tax return (the modello 730) or who having filed a 730, need to report foreign income
List of deductible expenses and tax credits in the Italian tax return
General Rules An Italian resident taxpayer has the right to certain deductions and claim a tax deduction or tax credit for certain expenses and charges incurred in the relevant tax return. Some, but not all, of these deductions/credits may be claimed by non-residents with taxable
Tax credit for employment income
Italy has no personal relief nor (any longer) a no-tax zone. This means that you start paying income (at 23% – see the marginal rates here) of the first euro of income. However Italy has an intricate system of tax credits (described as “deduzioni” –
Personal income tax (IRPEF) rates from 1 January 2022 up to 31 December 2023
These are the personal income tax rates that apply after 1 January 2022. For applicable rates before that date please click … […]
Personal income tax (IRPEF) rates from 1 January 2024 backup
These are the personal income tax rates that apply after 1 January 2024. For applicable rates before that date please click …. […]
Second payment on account
By 30 November of each year, Italian taxpayers must make payment of the second payment on account. The first payment was due earlier in the year at the same time as the tax due on income reported in your latest annual tax return. The amount