IRAP – Regional Tax on Production Activities

IRAP (Imposta Regionale sulle Attività Produttive) is a Local Tax collected by the Region where the production activities liable for tax are conducted. If taxpayers perform their activities in establishments and offices situated on the territory of several regions, the distribution of the taxable income, and, therefore, of IRAP, is made in proportion to the cost of the employees working in the various regional establishments and offices.

Tax Rate: The general Rate is 3,90%, in some region may be higher.