Interpretative Clarifications on Corporate Welfare 2023

News no. 26/2023

On August 1, 2023, the Italian Revenue Agency, with News no. 23/E, provided interpretative clarifications on the tax measures for corporate welfare, as stipulated by Article 40 of Decree no. 48/2023 (known as the Labor Decree), converted, with amendments, by Law no. 85 of July 3, 2023.

We recall that the aforementioned article established, exclusively for the 2023 tax period and for employees with dependent children for tax purposes, an increase to €3,000 (three thousand) in the exemption limit for fringe benefits as provided by Article 51, paragraph 3 (third period) of the Consolidated Income Tax Act (TUIR) no. 917/1986, whereas for all employees without dependent children for tax purposes, the exemption limit for 2023 remains at €258.23.

Included within the increased limit, exclusively for the category of employees with dependent children for tax purposes, are: -amounts paid or reimbursed by employers to these employees for the payment of domestic utility bills for integrated water services, electricity, and natural gas.-

Since the measure for the payment of domestic utility bills also applied to the 2022 tax year, to prevent beneficiaries from receiving the benefit multiple times for the same expenses, amounts already paid to the employee and related to invoices issued in 2023 but pertaining to 2022 consumption cannot be considered for the new benefit if they were already reimbursed by the employer previously by January 12, 2023.

The Italian Revenue Agency has clarified the personal scope, application method, and material scope of the beneficial measure.

Personal Scope

• The measure applies to individuals holding employment income and income assimilated to employment income, for whom income is determined according to the provisions of Article 51 of the TUIR.

Would you like to know more?

Subscribe to studiopiceci.it to continue reading these exclusive posts.

Subscribe now