Fringe Benefits 2023 – In-depth Analysis of Contributions to the Previr-Pastore Entity

Flash News No. 38/2023

Following further analysis and clarifications, it is hereby informed that contributions paid to the Previre-Pastore entity as insurance premiums for non-occupational accident risk, are considered benefits in kind, not subject to contributions. Therefore, the related amount will contribute to the total exempt fringe benefits up to the threshold of Euro 258.23, or the broader threshold of Euro 3,000.00 established by the legislator for 2023 only for employees with dependent children.

Consequently, if the sum of fringe benefits, including contributions paid to the Previr-Pastore entity, exceeds the exempt threshold, the entire value will be considered for the purpose of determining the amount subject to taxation. This amount will differ from the amount also subject to contributions in the presence of benefits in kind related to insurance premiums not subject to social contributions (premiums subject only to solidarity contributions, such as the contributions paid to the Previr-Pastore entity).

In the reconciliation phase, should the total amount of benefits in kind exceed the respective exemption limit, the amount of insurance premiums will be considered as deductible expenses at a rate of 19% on a maximum amount of Euro 530.00, which increases to Euro 750 for premiums related to death risk covering severely disabled individuals.

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