Accounting & Tax Compliance in Italy
Statutory accounts, VAT (IVA) returns, IRES/IRAP filings, and compliance aligned with the Redditi SC return.
ItalyCurrency
EUR
Corporate tax rate
24% IRES + 3.9% IRAP (combined ~27.9%, IRAP variable ±0.92pp by region)
VAT standard rate
22%
Legal forms
SRL · SpA
Bookkeeping standard
Italian GAAP (OIC) or IFRS for listed/large groups
Annual filing
Annual accounts (bilancio) approved within 120 days of year-end (180 in defined cases) and filed electronically with the Chamber of Commerce
How accounting and tax compliance work in Italy
Italy applies a national corporate income tax (IRES) alongside a regional production tax (IRAP), with the latter varying by up to 0.92 percentage points depending on the region — a structural layer most foreign companies do not encounter in comparable EU markets. Incorporation is comparatively fast and flexible: an SRL can in principle be formed with €1 in capital, though going below €10,000 carries mandatory profit-reserve obligations that make the standard threshold the practical default for most operating subsidiaries.
Operating in Italy requires coordination across a dual national-regional tax structure, an INPS contribution system with sector-specific variation, and a severance mechanism that accrues continuously and must be tracked, revalued, and reported for every employee, every year.
Discuss your Italy accounting setupRate structure and what it applies to
24% IRES + 3.9% IRAP (combined ~27.9%, IRAP variable ±0.92pp by region)
- IRAP regional variation — of up to 0.92 percentage points, requiring tax base allocation across regions for multi-location companies
- TFR accrual and annual revaluation — a deferred liability requiring continuous calculation (1.5% fixed + 75% of ISTAT inflation) for every employee
- CCNL classification — sector-specific collective agreement minimums for salary, notice and severance that frequently exceed statutory floors
- 13th and 14th month salary — built into gross remuneration and factored into TFR calculation
Rates that apply in Italy
| Rate | Applies to |
|---|---|
| 22% | Standard rate — most goods and services |
| 10% and 5%, with a super-reduced 4% | Reduced rate(s) — defined categories of goods and services |
Italian GAAP (OIC) or IFRS for listed/large groups, and when an audit is required
Statutory bookkeeping in Italy follows Italian GAAP (OIC) or IFRS for listed/large groups. Statutory audit (revisione legale) mandatory above 2 of 3 thresholds: €5.5M balance sheet, €11M turnover, 50 employees — aligned with EU harmonized thresholds.
Confirm your audit obligationAnnual accounts and registration
Annual accounts (bilancio) approved within 120 days of year-end (180 in defined cases) and filed electronically with the Chamber of Commerce.
Entity registration runs through the Chamber of Commerce (Registro delle Imprese), via notarial deed, typically taking 1–3 weeks for an SRL with standard bylaws.
Plan your filing calendarFrequently asked questions
Talk to a Italy accounting expert
TFR is frequently underestimated by companies modelling Italian employment cost from base salary alone. As a continuously accruing liability with its own revaluation mechanism, it requires year-round tracking, not a year-end estimate.