Interpretative clarifications on corporate welfare 2023
- giorgiafrisenda
- August 2, 2023
- Reading time: 5 min
News . 26/2023
On August 1, 2023, the Italian Revenue Agency, with News . 23/E, provided interpretative clarifications on the tax measures for corporate welfare, provided for in Article 40 of Decree no. 48/2023 (known as the Labor Decree), converted, with amendments, by Law no. 85 of July 3, 2023.
We would like to remind you that the aforementioned article established, limited to the 2023 tax period, exclusively in favor of employees with dependent children, an increase to €3,000 (three thousand) of 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, while for all workers who do not have dependent children, the exemption limit for 2023 remains at €258.23.
The increased limit applies only to employees with dependent children. -the sums paid or reimbursed to them by employers for the payment of domestic utilities for integrated water services, electricity, and natural gas.
Since the measure for the payment of household utilities also covered the 2022 tax year, in order to prevent the benefit from being used more than once in relation to the same expenses, amounts already paid to the employee and relating to invoices issued in 2023 but relating to consumption in 2022 cannot be taken into account for the purposes of the new relief if they have already been reimbursed by the employer before January 12, 2023.
The Revenue Agency has clarified the subjective scope, the method of application, and the objective scope of the tax relief measure.
Subjective scope
The measure applies to recipients of income from employment and income similar to that from employment, for whom income is determined in accordance with the provisions of Article 51 of the TUIR (Consolidated Law on Income Tax).