Italy
| Category | Rank | Score |
|---|---|---|
| Overall Rank | 37 | 44.63 |
| Corporate Taxes | 30 | 47.61 |
| Individual Taxes | 33 | 43.63 |
| Consumption Taxes | 28 | 59.82 |
| Property Taxes | 37 | 32.7 |
| Crossborder Taxes | 26 | 69.1 |
Italy ranks 37th overall on the 2021 International Tax Competitiveness Index, the same as in 2020.
Strengths
- Italy has above-average cost recovery provisions for investments in intangibles, as well as an allowance for corporate equity (ACE).
- 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 transfers, estates, and financial transactions, as well as a wealth tax on selected assets.
- The VAT rate of 22 percent applies to the fourth narrowest consumption tax base in the OECD (tied with Colombia).
- Compliance with the personal income tax system takes 169 hours on average, highest by far in the OECD (the OECD average is 66 hours).
Learn more about the tax system in Italy