The paper analyses the evolution of the corporate tax system in Italy over the period 2010-2020, focusing on the "Aiuto alla Crescita Economica" (ACE), the tax incentives for purchasing machinery and the tax benefits on retained earnings ("Mini-Ires"). The analysis is based on the computation of summary tax indicators derived from an investment model that takes into account the effects of the corporate taxes.
The analysis shows a strong reduction in the effective tax rates and in the tax asymmetry between debt and equity over the period 2011-2016, followed by a gradual increase in the years thereafter. Such dynamics were driven especially by the evolution of the ACE regime. Since 2016, the tax incentives on machinery have partially counterbalanced the increase in the effective tax rates.
