Last year, the average business taxation in Italy fell to 52.7 percent thanks to 98% of Italian companies being small and medium-sized businesses
According to the recent study conducted by the Tax Observatory of Cna, the National Confederation of Craftsmen and Small and Medium Enterprises, in light of the latest interventions of the legislature in Italy, the tax burden has lightened for those doing business in Italy. However, there are still many distortions and things to improve.
Taxation changes from region to region
The “Commune you go, tax you find” report shows that although almost homogeneously, the Italian entrepreneurial fabric, both in the North and South, is composed of 98 percent small businesses, there are deep territorial inhomogeneities on the tax front. The weight of the tax burden also changes and affects differently depending on the territory and city where different Italian businesses are established.
The paper says on the issue of taxes, “it stands out that in the municipalities with the worst services, the weight of taxes is greater.” For example, fewer taxes are paid in the North than in the South.
Bolzano remains in first place with a total tax rate of 46.7 percent, while in last place among provincial capitals is Agrigento with 58 percent.
Although the tax burden has fallen, it remains high. The differences in taxation depend on the Tari and cadastral rents that are not aligned with commercial values. In Bolzano, the business must work until June 18 to pay taxes, while in Agrigento, it is necessary to continue working until July 30.
Decreases in taxation for businesses
Last year, average business taxation in Italy fell to 52.7 percent thanks to the following:
- to the Imu deduction of 100 percent
- to the elimination of Irap
- to the reshaping of Irpef.
The overall tax burden dropped by 7.5 percentage points, and the gap between the most virtuous municipalities and those with the most significant tax burden also narrowed from 16 points to 11.3.
What are priorities for businesses, and what is new?
Among the most relevant issues, one certainly pertains to labor policies, given the increasing difficulty for businesses to find qualified personnel.
In addition, as highlighted by many SMEs, another issue relates to the possibility of facilitating access to self-generation of renewable sources and bonus tax systems, such as the eco bonus.
Tax reform in Italy will benefit those who decide to invest in small and medium-sized businesses. As pointed out by Deputy Minister for the Economy, the measure to introduce a minimum global tax of 15 percent for those who invest in Italian companies is undoubtedly a measure that will facilitate the simplification of our tax system.
