IRES (Imposta sul Reddito delle Societa) is Italian corporate income tax, charged at a flat 24% on a company's taxable income. It is the Italian equivalent of corporation tax and applies to SpA, Srl, and other corporate entities.

IRAP (Imposta Regionale sulle Attivita Produttive) is a regional production tax. The national standard rate is 3.9%, but regions can raise or lower it by up to 0.92 percentage points. It is calculated on net production value, which differs from IRES taxable income (e.g., labor costs are typically not deductible for IRAP).

Does this calculator handle IRAP regional variations?

This tool uses the standard national IRAP rate of 3.9% for planning purposes. If your company operates in a region with a different rate, adjust manually: the standard rate range runs from 2.98% to 4.82%.

Is IRAP deductible for IRES purposes?

A partial deduction applies: 10% of IRAP paid is deductible from the IRES tax base in certain circumstances (broadly, where labor costs are included in the IRAP base). This tool uses the simplified gross rates; consult a tax advisor for the precise net position.

Are there reduced IRES rates for small companies?

Italy does not have a general reduced IRES rate for SMEs. The 24% rate applies uniformly. Certain special regimes (e.g., for startup innovative companies, patent box regime) can reduce the effective IRES burden — those are not covered by this calculator.

What entities pay IRES and IRAP?

IRES applies to resident companies (SpA, Srl, cooperative societies, etc.) and non-resident companies on Italian-source income. IRAP applies to all entities carrying on business activities in Italy, including partnerships and individuals with business income, using a different base.

Italy Corporate Tax Calculator

Name: Italy Corporate Tax Calculator
Availability: InStock
Author: Nham Vu

Enter your Italian company's taxable profit to instantly calculate IRES (24%) and IRAP (3.9%) with a full component breakdown.

Company Details

Taxable Profit (EUR)

€

IRAP Rate (%) Standard: 3.9%

Regional rates range from 2.98% to 4.82%. Leave at 3.9% if unsure.

Enter your taxable profit and click Calculate Tax to see results.

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Summary

Enter your Italian company's taxable profit to instantly calculate IRES (24%) and IRAP (3.9%) with a full component breakdown.

How it works

Enter your company's taxable profit in euros.
IRES is calculated at the flat 24% rate on the full taxable income.
IRAP is calculated at the standard 3.9% rate (national average; actual regional rate may differ by up to ±0.92%).
Total tax, combined effective rate, and after-tax profit are shown instantly.
Review the component breakdown to see each tax in isolation.

Use cases

Estimate annual corporate tax liability for Italian subsidiaries or branches.
Model after-tax profit for Italian business plans and investor decks.
Compare Italian tax burden to other European jurisdictions.
Plan quarterly tax advance payments (acconti d'imposta).
Prepare rough tax provisions for Italian statutory accounts.
Evaluate the combined IRES + IRAP impact on different profit scenarios.

Frequently Asked Questions

Last updated: 2026-07-23 · Reviewed by Nham Vu