Regional tax on productive activities

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The standard IRES rate is 24% . This is somewhat lower than in countries such as Germany, where it can exceed 30%. However, it is above more competitive destinations in terms of taxes, such as Ireland , which offers an attractive 12.5%.

How is it calculated?

Let's imagine that your company has an cayman islands phone number library annual net profit of 500,000 euros. The IRES calculation would be:

24% over 500,000 euros : 120,000 euros.
IRAP (Imposta Regionale sulle Attività Produttive) is a specific Italian tax levied on the economic activity of companies. It finances health services in the regions.

IRAP rates:

Base rate of 3.9% on net added value (not on profits).Regions are free to adjust the rate by up to an additional 1% or apply specific exemptions.

IRAP is not applied to profits, but to the added value generated by the company. This includes revenues less the costs of goods and services purchased. However, it excludes expenses related to employees and financing.