It Irap

---
name: it-irap
description: "Italian regional tax on productive activities (IRAP) for tax year 2026. Covers who pays (companies, partnerships, professional associations, entities, public bodies) and who does not (individual traders, professionals and forfettari since 2022), the 3.9% standard rate and the 4.2%, 4.65% and 5.9% special rates, regional variation up to 0.92 points, the 2026 sector and bank surcharges, the base for companies (art. 5), partnerships (art. 5-bis) and professional associations (art. 8), the staff deductions and the flat deduction for small bases, the IRAP return, saldo and acconti, penalties, the multi-region split and the IRAP deduction in income tax. Trigger on: IRAP, imposta regionale sulle attività produttive, valore della produzione netta, dichiarazione IRAP, acconto IRAP, IRAP studio associato. Out of scope: IRES (it-ires-corporate-tax), individual income tax (it-income-tax, it-regime-forfettario), payroll (italy-payroll), cross-border hub (it-cross-border)."
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/it-irap"
  jurisdiction: "IT"
  tax_year: "2026"
  last_updated: "2026-10-31"
---

# Italian regional tax on productive activities (IRAP)

IRAP is a regional tax on the net value of production of an organised activity carried on in Italy. Italy's tax year is the calendar year; a company with another financial year uses that year. Rates, deductions and payment rules below come from the Agenzia delle Entrate instructions to the IRAP return filed in 2026 (tax year 2025), read with D.Lgs. 446/1997 as in force on 27 October 2026. The instructions for tax year 2026 are not yet published; the 2026 surcharges below come from the law itself. Whether the 2025 instruction figures hold for 2026 is on the Not yet confirmed line.

## Who this applies to

- **Taxed.** Companies and commercial entities (s.r.l., s.p.a., cooperatives), art. 3(1)(a) D.Lgs. 446/1997. Partnerships (s.n.c., s.a.s.) and those treated like them, art. 3(1)(b). Società semplici and professional associations (studi associati), art. 3(1)(c). Non-commercial entities, art. 3(1)(e), and public bodies, art. 3(1)(e-bis). Banks and financial entities (art. 6) and insurers (art. 7).
- **Not taxed: individuals.** From the tax year in progress when Law 234/2021 came into force (2022), IRAP is not due from individuals who run a business or practise a profession (Law 234/2021, art. 1(8), printed as note 70 to art. 3). That covers sole traders, freelance professionals, forfettari and minimi, with or without staff, under any income tax regime. No IRAP return. IRAP starts only if the business moves into a partnership or company.
- **Also outside.** Farming within art. 32 TUIR and farm cooperatives (art. 3(2)(c-bis)); collective investment funds other than SICAVs, pension funds and EEIGs (art. 3(2)). An EEIG's value of production is attributed to its members.
- **Autonomous organisation.** Before 2022 an individual professional owed IRAP only with an autonomous organisation (staff or significant equipment). The test now matters only for years up to 2021 (refund claims, open disputes) and for arguments that a small partnership or association lacks organisation. Refer both.

## Rates, bands and thresholds

| Item | Rate or amount | Year | Source |
|---|---|---|---|
| Standard rate (art. 16(1)) | 3.9% | 2025, used for 2026 | https://www.agenziaentrate.gov.it/portale/documents/20143/9765340/IRAP_2026_istruzioni.pdf/6cd3bc0e-e7bd-f449-c86b-03cc142c1b74?t=1772192055414 |
| Concession holders other than motorways and tunnels (art. 16(1-bis)(a)) | 4.2% | 2025, used for 2026 | same instructions |
| Banks and financial entities (art. 6) | 4.65% | 2025, used for 2026 | same instructions |
| Insurers (art. 7) | 5.9% | 2025, used for 2026 | same instructions |
| Public bodies, salary-based base (art. 10-bis) | 8.5% | 2025, used for 2026 | same instructions |
| Regional variation of the art. 16(1) and (1-bis) rates | up to 0.92 points up or down | 2025, used for 2026 | same instructions |
| Energy-sector surcharge on the art. 16(1) and (1-bis) rates, main activity in an ATECO code of Table 1 to D.L. 21/2026 | +2 points | 2026 and 2027 | https://www.normattiva.it/uri-res/N2Ls?urn:nir:stato:decreto.legge:2026-02-20;21~art3 |
| Bank and insurer surcharge (art. 16(1-bis)(b) and (c)), except art. 6(2), (3), (4) and (9) entities | +2 points | 2026, 2027, 2028 | https://www.normattiva.it/uri-res/N2Ls?urn:nir:stato:legge:2025-12-30;199 (art. 1(74)) |
| Detrazione for banks and insurers, only up to the extra tax the surcharge causes | EUR 90,000 | 2027 and 2028 | same law, art. 1(74) |
| Fixed-term staff deduction, per worker, up to 5 workers, if positive components do not exceed EUR 400,000 (art. 11(4-bis.1)) | EUR 1,850 | 2025, used for 2026 | IRAP instructions above, https://www.agenziaentrate.gov.it/portale/documents/20143/9765340/IRAP_2026_istruzioni.pdf/6cd3bc0e-e7bd-f449-c86b-03cc142c1b74?t=1772192055414 |
| Seasonal workers, 120+ days in two years, from the second contract (art. 11(4-octies)) | 70% of cost | 2026 | https://www.normattiva.it/uri-res/N2Ls?urn:nir:stato:decreto.legislativo:1997-12-15;446~art11 |
| Flat deduction, base up to EUR 180,759.91 (companies / partnerships and associations) | EUR 8,000 / EUR 13,000 | 2025, used for 2026 | IRAP instructions above, https://www.agenziaentrate.gov.it/portale/documents/20143/9765340/IRAP_2026_istruzioni.pdf/6cd3bc0e-e7bd-f449-c86b-03cc142c1b74?t=1772192055414 |
| Base over 180,759.91 up to 180,839.91 | EUR 6,000 / EUR 9,750 | 2025, used for 2026 | IRAP instructions above, https://www.agenziaentrate.gov.it/portale/documents/20143/9765340/IRAP_2026_istruzioni.pdf/6cd3bc0e-e7bd-f449-c86b-03cc142c1b74?t=1772192055414 |
| Base over 180,839.91 up to 180,919.91 | EUR 4,000 / EUR 6,500 | 2025, used for 2026 | IRAP instructions above, https://www.agenziaentrate.gov.it/portale/documents/20143/9765340/IRAP_2026_istruzioni.pdf/6cd3bc0e-e7bd-f449-c86b-03cc142c1b74?t=1772192055414 |
| Base over 180,919.91 up to 180,999.91 | EUR 2,000 / EUR 3,250 | 2025, used for 2026 | IRAP instructions above, https://www.agenziaentrate.gov.it/portale/documents/20143/9765340/IRAP_2026_istruzioni.pdf/6cd3bc0e-e7bd-f449-c86b-03cc142c1b74?t=1772192055414 |
| IRAP deductible for IRES and IRPEF, flat share linked to interest | 10% of IRAP | 2026 | https://www.normattiva.it/uri-res/N2Ls?urn:nir:stato:decreto.legge:2008-11-29;185~art6 |
| Minimum per region: no tax due or refunded if not more than | EUR 10.33 | 2025, used for 2026 | IRAP instructions above, https://www.agenziaentrate.gov.it/portale/documents/20143/9765340/IRAP_2026_istruzioni.pdf/6cd3bc0e-e7bd-f449-c86b-03cc142c1b74?t=1772192055414 |

Do not read the rates from the Normattiva current view of art. 16: it still prints a 2014 cut that was repealed back to its start. The rate for a given region, sector and year is published by the Dipartimento delle Finanze ("Fiscalità regionale e locale, IRAP"). Never assume the standard rate holds in a region. Since 2013 an ordinary-statute region may cut the rate to zero; regions under a health-deficit plan may have automatic increases.

## The taxable base

The base is the net value of production, not taxable income. Staff costs and interest are not deducted in computing it; staff relief comes through art. 11.

- **Companies (art. 5, quadro IC).** Value of production less costs of production, as classified in the income statement, excluding staff costs, losses on receivables and IMU.
- **Partnerships s.n.c. and s.a.s. (art. 5-bis, quadro IP).** Revenue (art. 85(1)(a), (b), (f), (g) TUIR) plus stock changes, less production costs, without staff costs, interest and losses on receivables. Add-backs are in rows IP29 to IP37 (leasing interest IP30, losses on receivables IP31, IMU IP32). A partnership may opt for the art. 5 company method (art. 5-bis(2)).
- **Professional associations and società semplici (art. 8, quadro IE).** Fees received less costs of the activity, including depreciation, excluding interest and staff costs; fees and costs as they count for income tax.
- **Non-commercial entities and public bodies (art. 10, 10-bis, quadri IE and IK).** Mainly pay-based. Refer.
- **Simplified option.** Businesses on a flat-rate income basis may compute under art. 17(2) (section III of IP and IE, section V of IC). Check the option rules in the instructions.

**Staff deductions (art. 11, quadro IS section I).**
- Permanent staff: whole cost deductible for taxpayers under art. 5 to 9 (art. 11(4-octies)).
- Seasonal workers: 70% of cost, as in the table; INAIL contributions stay fully deductible.
- Fixed-term staff: EUR 1,850 per worker, as in the table.
- Also deductible: INAIL premiums; apprentices, disabled staff, training contracts, research and development staff (art. 11(1)(a)).
- Per employee, art. 11(1) and (4-bis.1) deductions cannot exceed pay and employer costs (art. 11(4-septies)). For activity partly abroad, only staff in Italy count.

**Flat deduction (art. 11(4-bis)).** Taken on the base after the other art. 11 deductions, in the bands of the table. Above EUR 180,999.91 there is none. It is a deduction, not an exemption threshold. For a period longer or shorter than twelve months, or starting or ending in the year, the amounts are scaled (art. 11(4-bis.2)).

**Tax.** Each region's share of the base times that region's rate for the sector and year, plus any surcharge. Regions may grant detrazioni and credits against their IRAP (quadro IR, columns 9 and 10).

**First and last year.** A new company owes IRAP from its first year, with the flat deduction scaled and no historical acconti. A business closing mid-year pays on the value of production of its period; return and payment dates in a winding-up follow art. 5 and 5-bis D.P.R. 322/1998. Refer.

**IRAP in income tax.** For IRES and IRPEF, deduct 10% of IRAP computed under art. 5, 5-bis, 6, 7 and 8, referred flat to net interest expense (D.L. 185/2008 art. 6(1)), plus the IRAP on the taxable share of staff costs, net of art. 11 deductions (D.L. 201/2011 art. 2(1)). Not available to art. 10 and 10-bis taxpayers. A partner's share reaches IRPEF through the partnership's income.

## Deadlines and filing

- **Return.** Modello IRAP, a separate return, filed electronically (Entratel or Fisconline, directly or through an intermediary).
- **Partnerships and associations (art. 5 TUIR).** Between 15 April and 31 October of the year after the tax year.
- **Companies and public bodies.** By the last day of the tenth month after the year end. For calendar year 2025 the instructions give 2 November 2026, as 31 October 2026 is a Saturday.
- **Late return.** A return filed within 90 days of the deadline is valid; later, it counts as omitted (art. 2 D.P.R. 322/1998, as the instructions state).
- **Saldo and first acconto.** Partnerships and associations: 30 June of the filing year. Others: last day of the sixth month after the year end. Either may pay up to 30 days later with 0.40% added (art. 17 D.P.R. 435/2001). Pay with F24.
- **Acconti.** 100% of last year's tax (row IR21), if above EUR 51.65 (partnerships and associations) or EUR 20.66 (others). First instalment 40% with the saldo, not due if not more than EUR 103. Second 60% by 30 November (partnerships) or the last day of the eleventh month of the tax year (others). ISA taxpayers within the ISA revenue limit pay two instalments of 50%. The forecast method is allowed; too-low acconti carry penalties.
- **2026 acconto adjustments.** For 2026, last year's tax is recomputed as if certain listed provisions did not apply (Law 207/2024 art. 1(19)). Energy-sector taxpayers compute the 2026 acconto as if the surcharge had applied the year before (D.L. 21/2026 art. 3(2)); banks and insurers do the same for their surcharge (Law 199/2025 art. 1(75)).

## Penalties and interest

- **Omitted return** (art. 1(1) D.Lgs. 471/1997): 120% of the tax due, minimum EUR 250. With no tax due, EUR 250 to EUR 1,000, up to double for taxpayers keeping accounts.
- **Unfaithful return** (art. 1(2)): 70% of the extra tax, minimum EUR 150.
- **Late or missing payment** (art. 13(1) D.Lgs. 471/1997): 25% of the unpaid amount; halved if paid within 90 days; within 15 days, a fifteenth of the halved penalty per day of delay.
- **Voluntary correction.** Ravvedimento operoso (art. 13 D.Lgs. 472/1997) cuts the penalty, paid with interest at the legal rate. See it-ires-corporate-tax for the steps.

## Cross-border points

- **Non-resident companies** pay IRAP on activity carried on in Italy through a permanent establishment for at least three months (quadro IC).
- **Residents active abroad** through a permanent establishment for at least three months exclude that share of the value of production (art. 4(2), quadro IS section II).
- **Several regions.** Where activity in another region lasts at least three months, the base is split by region in proportion to the pay of staff and collaborators at premises in each region (quadro IS section II, quadro IR). Each region's rate applies to its share. Refer complex splits.

## Worked examples

**Example 1: s.r.l. at the standard rate.** A calendar-year s.r.l. in a region that applies the standard 3.9% has a value of production, before staff costs, of EUR 500,000. All staff are permanent, costing EUR 200,000, fully deductible. The base is EUR 300,000, above the flat-deduction bands, so no flat deduction. IRAP is EUR 11,700. That is also the next year's acconto: 40% (EUR 4,680) with the saldo, 60% (EUR 7,020) by the end of the eleventh month.

```oa-check
name: s.r.l., value of production EUR 500,000, permanent staff EUR 200,000, 3.9%
inputs:
  value_of_production: 500000
  permanent_staff: 200000
  rate_pct: 3.9
steps:
  - base: value_of_production - permanent_staff
  - irap: base * rate_pct / 100
  - acconto_first: irap * 40 / 100
  - acconto_second: irap * 60 / 100
expected:
  base: 300000.00
  irap: 11700.00
  acconto_first: 4680.00
  acconto_second: 7020.00
```

**Example 2: small s.n.c. with the higher flat deduction.** An s.n.c. in a region at 3.9% has value of production EUR 190,000 and one permanent employee costing EUR 10,000. After the staff deduction the base is EUR 180,000, inside the first band (up to EUR 180,759.91). As a partnership it takes EUR 13,000, not the EUR 8,000 a company would. Taxable base EUR 167,000; IRAP EUR 6,513.

```oa-check
name: s.n.c., base EUR 180,000 after staff, partnership flat deduction, 3.9%
inputs:
  value_of_production: 190000
  permanent_staff: 10000
  flat_deduction: 13000
  rate_pct: 3.9
steps:
  - base_after_staff: value_of_production - permanent_staff
  - taxable: base_after_staff - flat_deduction
  - irap: taxable * rate_pct / 100
expected:
  base_after_staff: 180000.00
  taxable: 167000.00
  irap: 6513.00
```

## Ask the client first

- Do you work as an individual, or through a partnership, association or company?
- What is the main activity and its ATECO code? Energy sector, bank, insurer or concession holder?
- In which regions do you have premises or staff, and for how many months of the year?
- How many staff, on which contracts (permanent, fixed-term, seasonal, apprentices)?
- What IRAP did you declare last year, and do you apply the ISA indices?
- Are you claiming back IRAP paid as an individual for a year before 2022?

## When to refer

These groups follow their own base rules or a separate regime. Do not compute their IRAP as if they were an ordinary company; refer.

- **Banks and financial intermediaries (art. 6(1) and (2)), non-financial holding companies (art. 6(9)) and insurers (art. 7).** Each has its own base rule and its own taxpayer code on the return (codes 03, 04, 07, 08). Source: IRAP 2026 return instructions, table of taxpayer codes and the insurers' section; D.Lgs. 446/1997 art. 6 and 7.
- **Concordato preventivo biennale (CPB) adherents.** The adherent declares the agreed value of production (D.Lgs. 13/2024 art. 17), with a minimum of EUR 2,000, and still fills in the ordinary base section. A holding company under art. 6(9) agrees its value under art. 5 only. Source: IRAP 2026 return instructions, quadro IS, section "Concordato preventivo biennale".
- **Non-operating companies (società non operative or di comodo).** The IRAP return instructions name the non-operating-company rules as a regime the ISA rewards can switch off. Refer any company that may fall under them. Source: IRAP 2026 return instructions, par. 2.1.6 (ISA).
- **Farming mixed with taxed activity.** Taxed and excluded farming activity are split by a ratio (Risoluzione 93/E of 18 July 2017) in a separate section of the return. Source: IRAP 2026 return instructions, par. 2.1.1 (excluded farming).

## Sources

| Source | URL | Read on |
|---|---|---|
| Agenzia delle Entrate, IRAP 2026 return instructions (tax year 2025) | https://www.agenziaentrate.gov.it/portale/documents/20143/9765340/IRAP_2026_istruzioni.pdf/6cd3bc0e-e7bd-f449-c86b-03cc142c1b74?t=1772192055414 | 2026-10-31 |
| D.Lgs. 446/1997 art. 3, with note 70 (Law 234/2021 art. 1(8)) | https://www.normattiva.it/uri-res/N2Ls?urn:nir:stato:decreto.legislativo:1997-12-15;446~art3 | 2026-10-27 |
| D.Lgs. 446/1997 art. 5-bis | https://www.normattiva.it/uri-res/N2Ls?urn:nir:stato:decreto.legislativo:1997-12-15;446~art5bis | 2026-10-27 |
| D.Lgs. 446/1997 art. 8 | https://www.normattiva.it/uri-res/N2Ls?urn:nir:stato:decreto.legislativo:1997-12-15;446~art8 | 2026-10-27 |
| D.Lgs. 446/1997 art. 11 | https://www.normattiva.it/uri-res/N2Ls?urn:nir:stato:decreto.legislativo:1997-12-15;446~art11 | 2026-10-27 |
| D.L. 21/2026 art. 3 | https://www.normattiva.it/uri-res/N2Ls?urn:nir:stato:decreto.legge:2026-02-20;21~art3 | 2026-10-27 |
| Law 199/2025 art. 1(74) and (75) | https://www.normattiva.it/uri-res/N2Ls?urn:nir:stato:legge:2025-12-30;199 | 2026-10-24 |
| D.L. 185/2008 art. 6 | https://www.normattiva.it/uri-res/N2Ls?urn:nir:stato:decreto.legge:2008-11-29;185~art6 | 2026-10-27 |
| D.L. 201/2011 art. 2 | https://www.normattiva.it/uri-res/N2Ls?urn:nir:stato:decreto.legge:2011-12-06;201~art2 | 2026-10-27 |
| D.Lgs. 471/1997 art. 1 and 13 | https://www.normattiva.it/uri-res/N2Ls?urn:nir:stato:decreto.legislativo:1997-12-18;471 | 2026-10-24 |
| D.Lgs. 472/1997 art. 13 | https://www.normattiva.it/uri-res/N2Ls?urn:nir:stato:decreto.legislativo:1997-12-18;472~art13 | 2026-10-24 |

Not yet confirmed: the IRAP instructions for tax year 2026 (the 2027 return edition; the published IRAP 2026 instructions cited above cover tax year 2025); regional rates by region and sector (Dipartimento delle Finanze list not read); which ATECO codes are in Table 1 of D.L. 21/2026; whether the 10% interest share applies with no net interest expense; the art. 17(2) simplified option rules; winding-up dates under art. 5 and 5-bis D.P.R. 322/1998; the Cassazione SU 9451/2016 autonomous-organisation ruling (not read); the 2027 move of IRAP payment and penalty articles into the new codes; the IRAP treatment of group reorganisations (mergers, demergers, contributions), which is not covered here: refer.

> Contributed by Michael Cutajar.

## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-10-31. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `it-irap` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/it-irap. If neither is available, confirm every figure against the official source pages cited above before relying on it.