Instead of the previous 5% tax to be levied on annual personal incomes higher than EUR90,000 (USD126,300), now people have to pay 10% on annual incomes over EUR150,000, an additional rate of 3% will now be applied on all personal incomes over EUR300,000.
The government has reintroduced a ‘solidarity’ tax on incomes; details of this ‘super-tax’ will be delineated in a further decree from the Ministry of the Economy by October 30 this year. It will be effective from January 1, 2011, to December 31, 2013. The government may further extend it until Italy’s budget reaches a balanced level.
The new version of the budget now includes a 1% rise in the rate of value added tax (VAT) in reserve. This rate will be effective in future to transactions made on or after the effective date of the budgetary legislation, and there has been no indication of a fixed termination date.
Some of the anti-tax evasion measures have also been detailed in this new version of budget. For example, the corporate tax rate on shell companies will be increased by 10.5% (from the normal 27.5% to 38%) for those established to hold assets that are still operated by their individual owners. The tax authorities will establish a presumed minimum income for such companies.
