On 28 September 2007, the Italian government approved the Draft Budget for 2008 (the Draft Budget) which will be presented and discussed in the Parliament. Below is a summary of the most important proposed changes. Further details will be reported as soon as the Draft Budget is approved by the Parliament. (a) Reduction of IRES and IRAP. The IRES rate would be reduced to 27.5%; currently the rate is 33%. The IRAP rate would be reduced to 3.9%; currently the rate is 4.25%. The new reduced IRES rate would also apply to partnerships but only with respect to the profit...