On 18 June 2014, Italy's Constitutional Court ruled that regional authorities may only adjust the standard rate of regional tax on productions activities (IRAP), and not special rates. Regional authorities are allowed to adjust the standard rate by at most 0.92%.
The standard rate of IRAP was recently reduced from 3.9% to 3.5% effective for fiscal years beginning on or after 1 January 2014. Special IRAP rates include the rate for banks and financial institutions, recently reduced from 4.65%…