Personal Income Tax (Italy)
Personal Income Tax (PIT) (Imposta sui redditi delle persone fisiche, or IRPEF)
The main tax on personal income that is implemented in Italy is the Personal Income Tax. In the local terminology, it is referred to as Imposta sui redditi delle persone fisiche (IRPEF). Individuals residing in Italy are subject to three different classes of taxes, which are as follows:
- National Income Tax
- Regional Income Tax
- Municipal Income Tax
Overall, a progressive taxation system is implemented in Italy. There are several different applicable tax rates that are taken under the tax net, contingent on the nationality status of the residing individuals.