Provision of Employee Benefits in 2023
- Oct. 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 Firm News No. 13/2023 and No. 26/2023, limited to the 2023 tax year, the following do not contribute to taxable income, up to a total limit of €3,000: the value of goods transferred and services provided to employees with dependent children (including recognized children born out of wedlock, adopted children, or foster children), as well as amounts paid or reimbursed to such employees by employers for the payment of household utility bills for water, electricity, and natural gas.
It is important to note that the decision regarding payment remains at the employer’s discretion.
When providing the benefits in question, it is worth noting a few points to keep in mind.
As previously noted, this “benefit” is available to employees with children (including children born out of wedlock who have been acknowledged, as well as adopted or foster children) who are considered tax dependents (Art. 12, para. 2 of the TUIR).
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