The IRAP Module

In this report, firstly Value Added Tax (VAT), social security contributions (SSC), excise taxes on production and IRAP (Imposta regionale sulle attività produttive – Regional Tax on Productive Activity) are reviewed. To the best of our knowledge, microsimulation models of indirect taxes at firm level have never been built. Moreover, some of these taxes are applied in several EU countries and hence any research experience acquired in this field may be shared within the European Community. Therefore, the challenge and the scientific interest in this project is very high. For IRAP and SSC the tax base can basically be reconstructed by using the survey data (as explained in detail for IRAP in Section 3 of this report), therefore the Regional Tax and Social Security Dataset has been built. On the other hand, for VAT and excise taxes modelling further data sources should be acquired and integrated.