More tax deduction for IMU from corporate and self-employment income
Article nr.3 of Law Decree nr. 34 of April 30th, 2019 has increased the deductibility rate of property tax (“IMU”) paid for capital real estate, for corporate and self-employment income tax purposes. The principle is that said property tax is not fully deductibile from taxable income.
The Law Decree provides for a gradual increase of the deductibility rate as shown below:
- 50% for the tax period commencing after December 31st, 2019
- 60% for the tax periods commencing after December 31st 2020 and December 31st 2021
- 70% from the tax periods commencing December 31st
Property taxes are deductible on cash basis. Therefore, said deduction will be reported in the income tax return with respect of the tax year in which the tax has been paid by the taxpayer.
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