Italy MOF Issues Decree Implementing Corporate Income Tax Rate Reduction for Entities Making Significant Investments

The Italian Ministry of Economy and Finance Aug. 8 issued a decree implementing the 4 percent corporate income tax (IRES) rate reduction, for qualifying entities making significant investments or increasing employment. The decree measures include: 1) implementing the reduction for the tax period following Dec. 31, 2024; 2) excluding from the reduction profits distributed or allocated for other than business activities during the two-year period after they are earned; 3) specifying in-scope companies, including joint-stock companies, European companies, and permanent establishments, as well as financial intermediaries applying the IRES rate with an additional 3.5 percent; 4) excluding from the regime ...