The Italian parliament approved a “maxi-amendment” on December 23 2013 completely replacing the proposals initially made by the Government on October 2013 in its draft 2014 Budget. Government has introduced tax measures that may produce additional revenues to reduce individual tax burdens over the next year.
The so-called 2014 “Stability Law” contains only limited tax cuts like deductions to individual income tax for employees those who are earning up to EUR55,000 (USD75,300), an increased tax incentive for equity contributions from 3 percent to 4.75 percent by 2016 and a rise to 30 percent from 20 percent in the deductibility of local property tax (IMU) against both federal and local corporate income tax for one year.
