Graber & Partner - Your business & tax consultant for Italy

In Italian labor law, an absorbable pay supplement is an additional salary element that exceeds the minimum wages of the applicable collective bargaining agreement (CCNL) and may later be "absorbed" against certain wage ...

Asset account

An asset account is a central element of double-entry bookkeeping. It records the individual asset and liability items of a company and thus forms the basis for the balance sheet. What is a balance sheet account? A ...

Ateco Code (ital.: Codice Ateco)

The ATECO code is the system used in Italy to classify the economic activities of companies and freelancers. The abbreviation ATECO stands for “Attività Economiche” , i.e. economic activities. It is based on the ...

Cadastral income

The cadastral income is a fiscal value in Italy assigned to every real estate unit, specifically both buildings (fabbricati) and land (terreni). It does not represent the actual, real income generated by a property, but ...

Cadastral value

The cadastral value (valore catastale) is a central fiscal value in Italy used for calculating taxes and duties related to the ownership and acquisition of real estate. It is not intended to reflect the market value of ...

Cash limit in Italy

The cash limit defines the maximum amount that may be paid in cash in Italy. The purpose of this rule is to combat money laundering and tax evasion as well as to promote traceable payment flows. Since 1 January 2023, ...

Certified Email Address (PEC)

The PEC address (Posta Elettronica Certificata) is a certified electronic address that has the same legal validity in Italy as a registered letter with return receipt. When two PEC addresses exchange messages, ...

The ComUnica (Comunicazione unica) single declaration is the central procedure that has been in place in Italy since 2010, enabling sole traders and companies to submit all important declarations to the relevant ...

The Corporate Income Tax IRES (Imposta sul Reddito delle Società) The IRES (Imposta sul Reddito delle Società) is the corporate income tax in Italy. It is a proportional tax applied to the income of corporations and ...

Depreciation

Depreciation refers to the annual reduction in value of a company's tangible and intangible fixed assets. In Italy, depreciation is regulated both in the civil code and in the Income Tax Consolidation Act (in particular ...

Direct taxes

Direct taxes are assessed and collected directly from the taxpayer and represent one of the State’s most important sources of revenue. The most important direct tax is income tax. Income tax For individuals: IRPEF For ...

Double taxation of income occurs when two countries have the right to tax the income. This results in a taxation conflict. To protect taxpayers, double taxation agreements (DTAs) have been concluded. As a rule, these ...

Duties and Liabilities of Directors in Italian Limited Liability Companies (Srl) The directors ( amministratori ) of an Italian limited liability company (Srl) bear a central responsibility for the management, control, ...

Electronic invoicing has been mandatory in Italy since 1 January 2019 and replaces the traditional invoice in paper or PDF form. It must be created in a standardized XML format and transmitted via the state exchange ...

ENASARCO is the national welfare and assistance institution for commercial agents and representatives in Italy. Registration and the payment of contributions are mandatory for all commercial agents and representatives ...

Equity (ital.: patrimonio netto)

In business administration and accounting, equity capital ( patrimonio netto) represents the portion of a company's assets that belongs to the owners or shareholders after all liabilities have been deducted. As a key ...

Excise duty (ital: accisa)

Excise duty ( accisa ) is an indirect tax on the production and consumption of certain goods. It is levied as soon as the products are released for consumption. Formally, the tax is payable by the manufacturer or ...

FAQ: Transfer of an employee to Italy

Especially since the Covid-19 pandemic, working from home has become an established and proven work mode. Hence, there is no longer need for a physical workplace. Consequently, more and more employees of German ...

Fee note (ital.: parcella)

In Italy, invoices issued by freelancers (e.g. solicitors, tax advisors or architects) are often referred to as fee notes. These constitute tax-relevant statements of account and, unlike standard invoices, contain ...

Income statements

Income statements are one of the key management tools in corporate accounting. Expenses and income are systematically presented in the income statement, providing transparency on the factors that have a significant ...

Inheritance declaration

The inheritance declaration is a mandatory tax declaration that must be submitted after the death of a taxpayer in Italy. The aim is to report the transfer of assets and rights to the heirs, legatees and beneficiaries ...

Interest Limitation Rule in Italy

In Italy, corporations are subject to a special restriction on the tax deductibility of interest on borrowed capital. This rule, known as the interest limitation rule, is intended to counteract excessive debt financing ...

IRPEF (Imposta sul reddito delle persone fisiche) – Personal Income Tax in Italy The IRPEF is the Italian tax on personal income . The IRPEF is a progressive tax . Calculation of labor costs, gross and net salary: ...

ISA (indici sintetici affidabilità)

The ISA, short for Indici Sintetici di Affidibilità Fiscale, are standardized questionnaires that companies and freelancers are required to submit as a mandatory part of their tax return. The main purpose of the ISA is ...

The Società a responsabilità limitata (Srl) is the Italian form of a limited (liability) company and, due to its clear liability limits and flexible organisational structure, is considered the most common type of ...

The NISF / INPS (National Institute for Social Welfare) is Italy’s central social security institution for employees. There is no choice between different social security providers in Italy. NISF/INPS is the only ...

Probation period

The duration of the probationary period is established by the collective bargaining agreement and serves as a trial phase for both the employer and the employee. During the probationary period, the employment ...

Dividends are distributions of profits or retained earnings from a corporation (e.g., LLC) to its shareholders. They must be clearly distinguished from salaries or other remuneration paid to directors/managers. ...

The Quarterly VAT report (Italian: Comunicazione delle liquidazioni periodiche IVA, “LIPE”) is a report that has been required to be submitted regularly under Italian VAT law since 2017. With the Quarterly VAT report, ...

Registration tax ( Imposta di Registro ) is a central tax in Italy that is levied on the registration of certain legal acts. Contracts, deeds, minutes and agreements generally only become fully legally valid once they ...

Reverse Charge

The reverse charge procedure is a special rule for VAT. When this is used, the seller or service provider has to issue an invoice without showing the VAT. The buyer or service recipient then has to add the VAT to the ...

Service companies play an important role in international corporate structures. Especially in the Italian market, many foreign companies establish their own service companies in order to manage operational tasks, ...

Shareholder financing

Shareholder financing is a frequently used instrument with which shareholders provide their company with financial resources. It primarily serves to secure liquidity, bridge bottlenecks or finance investments. In ...

In Italy, shell companies or non-operating companies ( società di comodo or società non operative ) are companies that have no or very little operating activity over a long period of time, even though they have ...

1. Introduction Since 1 January 2019, electronic invoicing has been mandatory in Italy for most transactions between companies, freelancers and private individuals based in Italy. Invoices are only valid if they have ...

Special deduction for personnel costs

The special deduction for personnel costs (Super deduzione per nuove assunzioni) is a tax measure designed to promote new hires in Italy. The benefit allows companies and free-lancers to claim a higher amount of the ...

In Italy, the tax identification number is the central tax identification number. It is used to uniquely identify individuals and organizations, especially for dealings with public authorities and in many other legal ...

Tax incentive for equity increases (ACE) In Italy, up until the 2023 tax year, the ACE tax incentive was available. This allowed companies applying double-entry bookkeeping to claim an additional deduction from their ...

Italian tax law recognises two key points in time at which income and expenses become "taxable" under tax law: the cash principle (Italian: principio di cassa) and the accrual basis principle (Italian: principio di ...

Those who wish to work in Italy as tax advisor (Dottore Commercialista), accounting expert (Esperto Contabile) or auditor (Revisore Legale) must follow a well-defined path that includes university studies, professional ...

UniEmens

UniEmens is the monthly electronic report that employers in Italy are required to submit to the National Social Security Institute INPS/NISF. Since 2009, it has replaced the former DM10/2 and EMENS systems and ...

UniLav

UniLav is the unified electronic filing system (“modello Unificato Lav”) for all mandatory employment notifications ( communicazioni obbligatorie ) in Italy. Through UniLav, data are transmitted centrally to the ...

( Art. 93-bis Codice della Strada, REVE ) Since the reform introduced by the “Security Decree” in 2018 and Law no. 238/2021, strict rules apply in Italy for persons resident in Italy who use a car with a foreign licence ...

In Italy, there are several legally regulated VAT rates. The type of delivery or service is the only determining factor – not the person of the buyer or client. The starting point is the standard VAT rate of 22% , which ...

VAT registers in Italy (registri Iva)

VAT registers are used to record all VAT-relevant transactions and form the basis for: periodic VAT settlement quarterly VAT report annual VAT declaration tax audits The following three registers must be kept: 1. ...

Voluntary disclosure (ravvedimento operoso) is an instrument provided for under Italian tax law that allows taxpayers to subsequently correct tax irregularities or omissions on their own initiative. This applies in ...

Due to the many technical possibilities and with a view to a better work life balance, working from home is becoming more and more attractive for companies and their employees. In fact, due to social distancing and the ...

Persons resident in Italy are often contacted directly by German companies for the purpose of penetration and expansion in the Italian market. If they wish to work in Italy for a German (or Austrian) company and, hence, ...

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