Tax Highlights Of Italian Budget 2019

; posted on
October 18th, 2018

The Italian Council of Ministers approved the bill concerning the 2019 state budget. On the same day, respecting the deadline set for all European Member States, the draft Budget was submitted to the EU Commission.

Tax Highlights

  1. From the 2019 tax period, companies investing and hiring workers can benefit from a subsidized scheme which reduces the IRES (corporate income tax) rate from 24% to 15% for the share of earnings reinvested in new capital goods and new employment;
  2. A 15% substitute income tax is introduced for all business activities with a threshold of revenues and compensation of up to 65,000 euro, regardless of the activity exercised;
  3. As from 1 January 2019, the business income tax (i.e., IRI) is repealed and is replaced by the flat tax;
  4. Certain incentives are introduced for enterprises reducing pollution. The eco-friendly activity includes: building restructuring; energy efficiency; restructuring and irrigation of private green areas;
  5. The 2018 tax bonus on depreciation related to investments in machinery and equipment is extended.

All the measures listed above are subject to approval. The budget measure will generally apply from 1 January 2019.

Sources: Draft Budget Plan 2019, Governo Italiano


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