Provision of fringe benefits in 2023
- Studio Piceci
- October 2, 2023
- Reading time: 2 min
News Flash No. 32/2023
Subject: Provision of fringe benefits pursuant to Article 40 of Decree Law No. 48/2023, converted with amendments into Law No. 85/2023
As explained in News no. 13/2023 and no. 26/2023, limited to the 2023 tax period, the following do not contribute to the formation of income, within the overall limit of €3,000 the value of goods sold and services provided to employees with dependent children (including recognized children born out of wedlock, adopted children, or foster children), as well as sums paid or reimbursed to these employees by their employers for the payment of domestic utilities for integrated water services, electricity, and natural gas.
It should be emphasized that the choice of payment remains at the discretion of the employer.
When providing the benefits in question, it is useful to bear in mind a few points to pay attention to.
As already highlighted, the recipients of this "benefit" are employees with children (including recognized children born out of wedlock, adopted children, or foster children) who are fiscally dependent (Article 12, paragraph 2 of the TUIR).