The profitability coefficient (coefficiente di redditivita) is the fixed percentage used in Italy's forfettario regime to convert gross revenue into taxable income. Because the flat-rate scheme ignores real expenses, this coefficient is how the tax office presumes your profit margin. It is determined by your ATECO code, the classification of your economic activity.
Coefficients range from 40% up to 86% depending on the sector. For example, professionals and consultants use 78%, retailers and traders use 40%, food and accommodation services use 40%, and street commerce uses 54%. A higher coefficient means a larger taxable share and thus more tax.
Example: a consultant (coefficient 78%) with EUR 50,000 revenue has taxable income of EUR 39,000; a retailer (coefficient 40%) on the same EUR 50,000 has taxable income of only EUR 20,000. The flat 5% or 15% substitute tax then applies to that reduced base.
- Set by ATECO activity code
- Ranges roughly 40% to 86%
- Applied before the 5% or 15% tax
Run the numbers with the flat-rate calculator, or compare Portugal's regime simplificado coefficients.