Interpretive Clarifications on Corporate Welfare for 2023
- Aug. 2, 2023
- Reading time: 5 min
News No. 26/2023
On August 1, 2023, the Italian Revenue Agency, in its interpretative circular No. 23/E ( News ), provided interpretative clarifications on the tax measures for corporate welfare, as provided for in Article 40 of Decree No. 48/2023 (the so-called “Labor Decree”), which was converted, with amendments, by Law No. 85 of July 3, 2023.
We remind you that the aforementioned article established—limited to the 2023 tax year and exclusively for employees with dependent children for tax purposes—an increase to 3,000 (three thousand) euros in the exemption limit for fringe benefits provided for in Article 51, paragraph 3 (third sentence) of the Consolidated Income Tax Law (TUIR) No. 917/1986; meanwhile, for all employees who do not have fiscally dependent children, the exemption limit for 2023 remains at 258.23 euros.
The raised limit applies only to the category of employees with dependent children for tax purposes. -amounts paid or reimbursed to such employees by their employers for the payment of household utility bills for integrated water services, electricity, and natural gas.-
Since the measure for the payment of household utility bills also applied to the 2022 tax year, in order to prevent the benefit from being claimed multiple times for the same expenses, amounts already paid to the employee that relate to invoices issued in 2023 but pertain to consumption in 2022 cannot be considered for the purposes of the new benefit if they were previously reimbursed by the employer by January 12, 2023.
The Italian Revenue Agency has clarified the scope of eligible taxpayers, the application procedures, and the scope of the preferential measure.
Subjective Scope
This provision applies to individuals who receive income from employment and income treated as equivalent to employment income, for whom the income is determined in accordance with the provisions of Article 51 of the TUIR.
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