Large-scale deduction for labor costs
- April 4, 2025
- Reading time: 4 min
News Flash No. 10/2025
We would like to remind our valued customers that Legislative Decree No. 216 of December 30, 2023, implementing the first phase of the personal income tax reform and other income tax measures, provides in Article 4 for a 20% increase in the cost of employees eligible for deduction, in the case of new hires resulting in a net increase in employment compared to the number of employees on the payroll during the previous tax year.
Employers who are eligible for the tax incentive, provided they meet the requirements outlined above, are:
- companies/entities resident in Italy (S.p.A., S.a.p.A., S.r.l., cooperatives, and mutual insurance companies);
- non-commercial entities, limited to new hires used in the conduct of commercial activities, provided that they are accounted for separately;
- nonresidents, with respect to business activities carried out in Italy through a permanent establishment;
- sole proprietorships (including family businesses and marital partnerships);
- partnerships (SNC, SAS) and similar entities;
- self-employed professionals and practitioners (including those working in a group).
This benefit does not apply to companies and entities undergoing ordinary liquidation, subject to judicial liquidation, or subject to other liquidation procedures related to corporate crises.
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