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Italy — Business: Payroll

Italian payroll involves INPS contributions of about 30% (employer) and 10% (employee) of gross pay, with INPS registration required.

VerifiedProfessional tax guide — not a government sourcePwC Worldwide Tax Summaries – Italy corporate: other taxesLast reviewed: 2026-10-26

Key facts

  • Employers pay about 30% of gross pay in INPS contributions while employees bear about 10%.
  • Employers must register with INPS to pay contributions.
  • Rates vary by company activity, employee numbers and the employee's position.
  • Employee contributions are deductible for IRPEF (personal income tax).
  • The standard VAT rate is 22% with reduced rates of 10%, 5% and 4%.

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