Italy's headline corporate income tax (CIT) rate is 24.
The headline personal income tax (PIT) rate is 43.
The standard VAT/GST (or equivalent consumption tax) rate is 22. Registration thresholds, zero-rated and exempt categories, and reduced rates vary by jurisdiction - see the source link below for the full detail on this jurisdiction.
Following Legislative Decree No. 209/2023 (effective FY2024), an individual is an Italian tax resident if, for the greater part of the year (183 days, or 184 in a leap year), they meet at least one of three tests: registration with the Anagrafe (civil registry - now only a rebuttable presumption rather than absolute), domicile (redefined to center primarily on personal and family ties, with economic interests now secondary), or physical presence in Italy (a new independent test introduced by the 2023 reform). Meeting any one test for the required duration is sufficient; days of arrival and departure both count as full days.
An Italian company controlling a foreign entity must consolidate that entity's income into its own taxable base in proportion to its shareholding, regardless of actual distribution, where the foreign entity qualifies as a CFC. From 2024, a simplified test applies: an entity is a CFC where its effective tax rate is below 15% and more than one-third of its revenue is passive (dividends, interest, royalties, and similar). Where the foreign entity's financial statements are independently audited, the taxpayer may instead elect a three-year (auto-renewing) option to pay a 15% substitute tax on the CFC's net accounting profit in lieu of full CFC inclusion.
Italy no longer has a formal thin capitalization rule. Instead, net interest expense is deductible only up to 30% of gross operating margin (ROL - Risultato Operativo Lordo, Italy's EBITDA-equivalent measure), applying to related-party and third-party debt alike.
Italy has signed roughly 100 double tax treaties (Agenzia delle Entrate, the Italian Revenue Agency) generally following the OECD Model Convention, covering all EU member states plus a broad range of other jurisdictions. The current, authoritative list of treaties in force is maintained by Italy's Ministry of Economy and Finance.