Investment in Italy

5.1.12 Foreign tax credits 495.1.13 Tax rulings 505.1.14 Transfer pricing 505.2 Partnerships 535.2.1 Determination of taxable income 535.3 Permanent establishments 535.3.1 Definition of permanent establishment 535.3.2 Determination of taxable income 535.4 EU directives, regulations and agreements relating to direct taxation 546. Taxation of individual income 556.1 General rules 556.1.1 Introduction 556.1.2 Italian tax residents 556.1.3 Non-Italian tax residents 556.1.4 Types of personal taxes 556.2 Taxable income 556.2.1 Categories 556.2.2 Employment income 566.2.3 Business and professional income 576.2.4 Investment income 576.3 Tax-exempt items and personal deductions 576.3.1 Tax-exempt income 576.3.2 Deductions 586.4 Tax rates 606.4.1 General rules 606.4.2 Separately taxed items 606.5 Administrative and filing requirements 626.5.1 Withholding taxes 626.5.2 Deadlines 636.5.3 Anti-money laundering rules 63© 2012 KPMG S.p.A., KPMG Advisory S.p.A., KPMG Fides Servizi di Amministrazione S.p.A., KPMG Audit S.p.A., Italian limited liability share capital companies, and Studio Associato Consulenza legale e tributaria, anItalian professional partnership, are member firms of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.