Italy

Italy's Rankings
CategoryRankScore
Overall Rank3444.03
Corporate Taxes3145.96
Individual Taxes3150.72
Consumption Taxes2761.53
Property Taxes3537.26
International Tax Rules2762.25

Italy ranks 34th overall on the 2019 International Tax Competitiveness Index, one spot better than in 2018.


Strengths

  • Italy has above-average cost recovery provisions for investments in intangibles.
  • Last-In-First-Out treatment of the cost of inventory is allowed.
  • Italy has a broad tax treaty network, with 100 countries.

Weaknesses

  • Italy has multiple distortionary property taxes with separate levies on real estate, net wealth, estates, and financial transactions.
  • The VAT rate of 22 percent applies to the third narrowest tax base in the OECD.
  • Compliance with the personal income tax system takes 169 hours on average, highest by far in the OECD.

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