Italy has introduced new reduced tax regime for Italian self-employed individuals and which will be effective from January 1, 2015. The self-employed individuals including entrepreneurs and sole traders will be entitled to new 15 percent fixed tax regime. Entrepreneurs and sole traders with an annual turnover of between EUR15,000 (USD17,900) and EUR40,000 will be under this new reduced tax regime.
A fixed rate of five percent is also applicable for startups of sole traders for their first three years. Self-employed individuals of not more than 35 years of age can still choose to continue with the previous 5 percent five year regime on the turnover of newly established business activities.
