The taxation system consists of all the taxes provided for by law. All individuals who carry out a job from which they earn money are obliged to pay taxes, which will be calculated according to their income.
Definition: “Taxes are mandatory contributions levied on individuals or corporations by a government entity—whether local, regional, or national”.
Various bodies administer the Italian system, and the taxes differ according to the activity type.
All Individuals who have an employment contract pay IRPEF and other local taxes, according to the place where they reside.
Concerning business activity, societies and Individual companies pay different kinds of taxes:
IRPEF (Imposta sui Redditi delle Persone Fisiche) is the Italian individual income tax. It is payable by natural persons, regardless of whether or not they reside in Italy, for different types of income such as one from real estate, employed or self-employed work, business income and capital income
IRES (Imposta sui Redditi delle Società) is the Italian tax on corporate income.
Moreover, both individual companies and societies pay: