(a) Rate reduced from 33% as from 1 January 2008.
(b) This is the principal rate. Regional rates can change
(c) Capital gains derived from the sale of participations are 95% exempt if certain requirements are met.
(d) Losses incurred by a company during the first three taxable periods may be carried forward indefinitely but only if they related to a newly established business activity.
Tax advisers have witnessed a more aggressive position from the Italian tax authorities this year. The tax administration is fighting tax avoidance and, as such, is auditing companies more often. In the early years of this decade, it said big taxpayers ...
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Tax advisers have witnessed a more aggressive position from the Italian tax authorities this year. The tax administration is fighting tax avoidance and, as such, is auditing companies more often. In the early years of this decade, it said big taxpayers would be audited at least once every two years. This pledge was never carried out because the tax authorities lacked the expertise to do so. Now, as a result of the economic downturn, companies are expecting this level of auditing to begin. One adviser slammed the authorities saying "it's hard to interact with the administration especially when it comes to tax abuse".
Others have criticised the way the government has handled the downturn. Italy introduced two decrees aimed at helping companies. The first, introduced at the end of 2008, provided aid to medium-sized companies. The second was announced at the end of June 2009. It contained regulations to help improve the capital ratios of the banks. The feeling in the market, however, was that this measure came too late. Tax professionals have also criticised complexities in tax legislation. One adviser said the rules are not thought through well enough and are "technically incomplete or inaccurate". Industry commentators are calling for simplicity and a change in how issues are approached.
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