It is always good to be up-to-date with the tax system of the country where you have chosen to conduct your business in.

1. What you need to know about the Tax Rates for Dormant Companies in Italy
It is always good to be up-to-date with the tax system of the country where you have chosen to
conduct your business in. As per the new Italian tax law, dormant companies in Italy will be
paying a higher corporate tax rate in 2012. Companies that can be considered ‘dormant’ will have
to pay 38 percent corporate income tax (IRES) tax rate next year compared to the current rate of
27.5 percent..
The corporate income tax increase however, will not affect Unlimited Liability Companies (ULC)
or personal companies. The law also extends the ‘dormant’ discipline to companies facing
financial losses for three consecutive years.
Tax rates for dormant companies in Italy
Companies are considered as ‘dormant’ when their regular revenues are lower than these balance
sheet items that include 2percent for shares or other participating instruments and financial
credits;6 percent for real estate assets (reduced to 5% for office buildings or 4% for buildings
purchased during the same year of application); and 15percent for all other tangible and
intangible fixed assets. For instance if a company owns an office building valued € 500.000,00,
minimum revenues should be € 25.000,00 (or the 5% of € 500.000,00). If actual revenues are €
18.000,00, the company is considered a “dormant” company (unless the company applies for
seeking exemption from these provisions).
The new tax rates would need to be considered while calculating income tax pre-payments due for
2012 or the year following the effective date of September 17th, 2011.
Take the help f an expert for better results
No organization wants pay excessive taxes, especially in the current economic climate when doing
business overseas. Partnering with an expert can be of a huge help as it simplifies a number of
process and also helps overcome any challenges in taxation. A business consultant will have
complete up-to date information on how to keep up with the ever changing laws. With a
dependable professional partner in an international expansion, you can get rid of any concern
regarding taxation, expatriate tax advice, or global transfer pricing. Choose a good partner for
your overseas expansion project, so that you can concentrate on building your business.
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