Italy Corporate Income Tax
Detailed corporate income tax rates and rules for Italy in 2026.
Italy levies a corporate income tax (IRES - Imposta sul Reddito delle Società) at a standard rate of 24%. Additionally, a regional production tax (IRAP - Imposta Regionale sulle Attività Produttive) of 3.9% applies to the net value of production, bringing the combined effective rate to approximately 27.9%. Banks and financial institutions are subject to a higher IRES rate of 27.5%.
Standard Rate
24%
Additional Notes
Italy offers a patent box regime providing a 50% exemption on income derived from qualifying intellectual property. The country also offers a notional interest deduction (ACE - Aiuto alla Crescita Economica) on equity increases. Italy implements the EU Anti-Tax Avoidance Directives and has CFC rules, interest limitation rules, and extensive transfer pricing regulations aligned with OECD guidelines. Tax losses can be carried forward indefinitely but can only offset up to 80% of taxable income (except for losses in the first three years of activity).
How Italy Corporate Tax compares
Italy’s corporate tax rate of 27.9% is the 55th highest of 203 countries TaxAtlas tracks, above the global average of 22.2% and Europe’s regional average of 19%.
