How is income calculated and taxed in the Simplified regime?

• Income is taxed under progressive IRPEF brackets, not a flat rate.
• Regional and municipal taxes also apply.
• The accounting method is based on the cash principle (criterio di cassa): income and expenses are recorded only when money is actually received or paid.
• You can deduct real, documented business expenses (rent, equipment, etc.).

You cannot use lump-sum deductions like in the flat-rate regime.