IRES, what it is and why we talk about it
Paid by 1.3 million companies and entities, the corporate profits tax is reduced on reinvested profits. The Dm of the Mef regulates the bonus version. Identikit of a 52 billion euro tax
3' min read
Key points
3' min read
It is worth over EUR 57 billion a year. It is paid by 1.3 million companies and entities. Its rate is 24 per cent, but can be reduced to 20 per cent. It is the IRES, the tax for which the ministerial decree signed on 8 August 2025 regulates the 'premium' version (i.e., with a rate of 20 per cent), reserved for companies that invest in production and hire new staff. But let us go in order.
What is IRES?
.IRES is the tax paid by corporations and entities (it is regulated by article 73 of the Tuir). It provides for only one proportional tax rate, which is 24 per cent and is levied on business income.
Who has to pay IRES?
.According to the Finance Statistics, of the approximately 1.3 million taxpayers who pay it, 1.2 million are limited liability companies (Srl). In addition to LLCs, this tax has to be paid by joint-stock companies (S.p.A.) and other corporations (such as limited partnerships).
Cooperatives and mutual insurance companies are also required to pay it. Public and private entities, consortia, trusts, undertakings for collective investment (OICR) and non-commercial entities (non-profit organisations) must also pay IRES. Among the taxpayers, for example, are 473 foundations.
Why is it in the news?
The Budget Law for 2025 provides for a discount on IRES in favour of companies that leave a significant portion of their profits in the company, in order to allocate them to investments, new hires, welfare or training. The reduced rate is 20 per cent (instead of 24 per cent).
