Maximum deduction for labor costs
- Studio Piceci
- April 4, 2025
- Reading time: 4 min
News Flash No. 10/2025
We remind our valued customers that Legislative Decree No. 216 of December 30, 2023, implementing the first phase of 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 that result in a net increase in employment compared to the number of employees in the previous tax period.
Employers who are eligible for the tax relief, provided they meet the requirements outlined above, are:
- companies/entities resident in Italy (spa, sapa, srl, cooperatives, and mutual insurance companies);
- non-commercial entities, limited to new hires used in the exercise of commercial activities, provided that they are recorded in separate accounts;
- non-resident entities, in relation to commercial activities carried out in Italy through a permanent establishment;
- sole proprietorships (including family businesses and marital partnerships);
- partnerships (snc, sas) and equivalent entities;
- practitioners of arts and professions who carry out self-employed work (including in association with others).
The subsidy is not available to companies and entities in ordinary liquidation, subject to judicial liquidation, or other liquidation procedures related to corporate crisis.