With the new year, a set of tax measures for corporate
taxpayers, mainly enacted with the budget law for 2017, which was
approved by the Italian Parliament on December 7, 2016 (the
"2017 Budget Law"), become effective in Italy. Apart from
revenue goals, the measures are also aimed at rendering Italy more
attractive for foreign investments, supporting domestic investments
by Italian companies, and promoting economic growth in general.
Corporate Income Tax Rate Reduction and Surtax for Certain
Financial Institutions
As of 2017 tax year, the Italian corporate income tax
("CIT") standard rate is reduced from 27.5 percent to 24
percent. Banks, parent companies of banking groups, individual
asset management companies, financial intermediaries, electronic
money institutions, payment institutions, and financial companies
are, however, subject to a 3.5 percent surtax, so that the
effective CIT rate for such entities will remain 27.5 percent. The
surtax does not apply
