The Italian Government has issued a three-year Economic and Financial Document (DEF), which includes both individual and corporate income tax reductions.
The individual income tax reductions will benefit lower income taxpayers. With effect from 1 May 2014 resources have been allocated to increase tax deductions for those earning salaries under EUR25,000.
The government also intends to reduce business taxation and is beginning this process by implementing a reduction of around ten percent in the regional tax on production (IRAP). To pay for this reduction there will be an increase in tax on financial income, which will be increased to 26 percent from July 1, 2014. Further details will be released later in April 2014.
