The Christmas Bonus
- Studio Piceci
- October 17, 2024
- Reading time: 3 min
News Flash No. 32/2024
The "Christmas Bonus" allowance, provided for by Decree-Law No. 113/2024 on "Urgent fiscal measures, regulatory extensions, and economic interventions," consists of a one-time benefit one-off payment for employees who meet certain income and family requirements. The Revenue Agency has published, in News . 19/E, the initial guidelines on how to take advantage of it.
The requirements are summarized as follows:
1) You must be an employee, either in the public or private sector; the Bonus is not available, for example, to anyone receiving income equivalent to employment income as defined in Article 50 of the Consolidated Income Tax Law (T.u.i.r.);
2) You must have earned income from employment in 2024, regardless of the type of contract (permanent, fixed-term, part-time, full-time);
3) The total income of the employee for 2024 must not exceed €28,000.00 (considering it net of the income from the real estate unit used as the main residence and that of the related appurtenances). In this regard, the so-called reference income (i.e., the total income to be used to determine tax relief (including the bonus in question), also taking into account income subject to flat-rate tax, income subject to substitute tax in application of the flat-rate regime for those engaged in business, arts, or professions, the ACE tax relief quota, and sums given to private sector workers employed in accommodation facilities and food and beverage establishments as gratuities (so-called tips), subject to substitute tax.