Use this practical tax calculator to estimate the main Italian tax items typically reviewed by founders, branches and foreign companies, including VAT, IRES and IRAP.
VAT is collected from customers on your invoices. You can usually offset it with VAT paid on business purchases.
The result is a VAT payable (you pay) or a VAT credit (you carry forward / request).
Flat 24% tax on taxable profit.
Applies to Italian companies, registered branches, and permanent establishments.
Typically around 3.9% (varies by region). Often unexpected for foreign founders.
The base is not always identical to profit. This tool uses a simplified proxy.
In Italy, part of next year’s taxes is paid in advance, often based on the previous year.
This is a major cash-flow impact in year 2 and beyond.
Send us your simulation and we will verify your tax position, VAT setup and structure (SRL vs Branch vs PE), including cash-flow effects of advance payments.
Email: info@isy.tax
Subject: VAT & Tax simulation ISY.tax tool