Italian Government Approves Draft Budget for 2017

The Italian Prime Minister Mateo Renzi has announced that the Council of Ministers has approved the draft budget for 2017. Tax-related measures of the budget include:

• Moving forward with the planned corporate tax rate cut from 27.5% to 24% in 2017;
• Taxing income of non-corporate businesses, such as partnerships and sole traders, at the 24% rate in the year it is earned if the income is retrained in the business (taxed as individual income if taken out);
• Extending the depreciation allowance o…