The Regional Tax on Productive Activities (IRAP) is a proportional tax. It means that taxation is performed at a fixed rate.
Compared to IRPEF and IRES taxes, the IRAP tax is levied on a different tax base: the net value of production. Moreover, it is a regional tax.
Its calculation is slightly more complicated and for this reason, to gain more information on the concept of net production value and how this tax works, we recommend reading the In-depth guide to the Regional Tax on Productive Activities.
If your company carries out an economic activity that includes the production and exchanges of goods or services through an autonomous organization, your company is required to pay the IRAP tax.