Superior tax calculations for the Italian flat-rate scheme
Control your finances with the Xolo Italian flat-rate tax calculator: Simplified, accurate and compliant estimates, perfect for freelancers and small business owners.
Calculate your taxes
Your details
Are you currently a freelancer acting on the flat-rate scheme?
Your planned monthly income*
Select business category
Have you had another previous VAT ID in the previous 3 years?
Has your business been open for more than 5 years
Your taxes
The net compensation tax calculator does not take into account any advance payments or balances due, as these can be influenced by various variables specific to the individual taxpayer. For a complete and accurate assessment of your tax situation, we recommend consulting our specialized accounting advisory services.
The flat-rate calculator that optimizes your Italian tax planning
Tailored to your unique tax liabilities, the Xolo flat-rate calculator optimizes the financial planning and decision making for any Italian business. Our accountants are experts on the Regime forfettario – the Italian flat-rate scheme–and our team ensures that any freelancer can streamline their calculations with ease.
- Input your gross revenue
- Add your social security contributions
- Discover applicable taxation rates
And voila! You’ll receive superior, accurate and easy to digest tax estimates with Xolo every time.
Calculate your taxable income in Italy with Xolo in 5 steps
Choosing your ATECO Code with the Italian flat-rate scheme
To ensure accurate calculations, the first step is to select your ATECO code. This code classifies your business activity and determines the coefficient applied to your gross revenue to calculate taxable income. It’s essential to select the correct code to reflect your business operations accurately.
How to Calculate Gross Revenue as a Freelancer
Your gross revenue is the total income earned from your freelance activities before the social contribution. Simply input the total amount you’ve invoiced over the year. The calculator will automatically adjust this figure based on your selected ATECO code.
Social Security Contributions in Flat-Rate Scheme
Under the flat-rate scheme, social security contributions (INPS) are a mandatory expense. These contributions are calculated based on your gross revenue, with a portion of your income set aside to cover them. The calculator will automatically subtract these contributions from your gross revenue to determine your taxable income.
New Business: 5% Flat Tax in Flat-Rate Scheme
If you’re a new business within your first five years of operation, you can benefit from a reduced flat tax rate of 5%. The calculator applies this rate to your taxable income, providing significant savings in your initial years of business.
XOLO
Peace of mind without the paperwork
Too much information? Don't worry, at Xolo we take care of simplifying everything related to the Italian Flat-Rate Scheme, and love saving you the drama:
- Hassle-free, free freelance (phew!) registration in under 24h.
- Software for managing invoices, expenses and everything else.
- Expert accountants accompanying you through every process with useful explanations.
FAQs
Understanding the Italian flat-rate scheme
The flat-rate scheme, or regime forfettario, is a simplified tax regime for freelancers and small businesses in Italy. It offers a lower tax rate and simplified accounting requirements, making it an attractive option for those with lower revenues. You can read more about the benefits and eligibility criteria in our detailed guide to the flat-rate scheme in Italy.
Under the flat-rate scheme, you’ll pay a single flat tax based on your adjusted taxable income. This rate is either 5% or 15%, depending on your business' age. Additionally, you are responsible for social security contributions (INPS), which the calculator automatically accounts for.
Choosing between the flat-rate and standard schemes depends on your business’ revenue and expenses. The flat-rate scheme is typically more beneficial for those who don't exceed the €85,000 revenue threshold and have fewer deductible expenses, as it simplifies tax obligations and offers a lower tax rate.
It’s necessary to open a VAT number (P.IVA) when you conduct economic activity that is habitual, continuous and organized, regardless of your annual revenue. This means that if you operate professionally and continuously, you must open a VAT number even if your income is below a certain threshold. However, if your activity is occasional and not continuous, you can earn up to €5,000 per year without needing to open a VAT number. If you exceed this €5,000 limit, you are required to open a VAT number, even if the activity remains occasional.
Freelancers under the flat-rate scheme benefit from simplified accounting obligations. You do not need to keep detailed accounts of expenses, as the scheme applies a standard deduction to your gross revenue. However, it’s still essential to maintain accurate records of your income and ensure timely payment of your tax obligations.
Use the Xolo tax calculator for the flat-rate scheme in Italy. It’s a powerful tool that can save you time and help you remain compliant with Italy’s tax regulations. Whether you’re just starting your freelance journey or have been operating for years, our calculator provides the clarity and confidence you need to manage your finances effectively.