The Sophisticated Options for the Tax Return


The tax expert concerns the majority of Italian citizens. Nonetheless, questions continue to arise on the subject: who should pay it? What are the rates and brackets? How are they calculated? What exactly is personal income tax? We try to dispel your doubts.

The tax expert: what exactly is the personal income tax?

In Italy the personal income tax, also known as The tax expert, has been in force since 1974 and is regulated by the Consolidated Income Tax Act. It is a direct, personal and progressive tax that concerns income-producing subjects: it is said to be direct because it directly affects wealth, i.e. income, and personal because it involves all subjects residing in Italy with an income. Finally, it is progressive because the calculation of the percentage share on income is proportional to the income itself. Using the tax return calculator comes useful here.

From the fiscal point of view, the income tax is a joint tax, as it is paid in proportion to the government, the Regions and the Municipalities with the integration of related additional taxes. The tax expert is one of the most important sources of income for the Italian state.


Personal income tax is a tax that is levied directly on all types of income and is paid to the state. It is paid for by natural persons, i.e. not by legal persons, such as companies. The percentage share is calculated on the basis of the actual amount of all income received by the taxpayer and provides for the division into five income brackets.

Who are the taxable persons for personal income tax?

The obligation to pay personal income tax involves:

  • Subjects resident in Italy for assets owned and income produced in Italy or abroad
  • Persons not resident in Italy for income earned
  • Improper taxable persons, i.e. partnerships and corporations whose shareholders have adopted taxation for transparency (and pay the tax directly based on their shareholding)

Sole proprietorships

Simple companies

When is personal income tax applicable and when not?

The tax expert is calculated taking into account the total income, i.e. the sum of all income produced, namely:

  • Land
  • Of capital
  • From employment
  • Self-employed
  • Business
  • Different

The tax expert is not applicable when the natural person is considered incapable and is therefore exempt from taxation, as he falls within the so-called “No Tax Area”. It is about:

  • Pensioners over the age of 75 with a total income of less than 8,000 euros per year
  • Employees with a total income of less than € 8,174 per year

Is it possible to deduct or deduct personal income tax?

There is the possibility of making a sort of discount on the percentage of The tax expert to be paid. There are two categories of possible tax reductions:

Deductible charges: they can be subtracted from income before calculating the tax to be paid, thus reducing the tax base on which the tax is calculated.

Deductible charges: they can be deducted directly from the taxes to be paid by decreasing the amount thereof.

Income tax calculation example

Let’s take as an example a person with an income of 25,000 euros per year. In your case, the personal income tax to be paid will be:3,450 euros + (27% of excess income, 10,000 euros = 2,700 euros) = 6,150 euros.

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