Maximum deduction of labor costs

Flash News n.10/2025

We remind our esteemed Customers that Legislative Decree No. 216 of December 30, 2023, implementing the first module of reform of personal income taxes and other measures regarding income taxes, in Article 4, provided for a 20% increase in the cost of employees admitted for deduction, in the presence of new hires that determine a net increase in employment compared to the employees in force in the previous tax period.

The employers who can benefit from the tax break, if they meet the requirements outlined above, are:

- companies/entities resident in Italy (spa, sapa, srl, cooperative and mutual insurance companies);

- non-commercial entities, limited to new hires used in the exercise of commercial activity, provided that they result from separate accounting records;

- non-resident entities, with respect to commercial activities carried out in Italy through a permanent establishment;

- individual enterprises (including family businesses and marital businesses);

- partnerships (snc, sas) and equivalent entities;

- self-employed professionals who carry out self-employment activities (including in associated form).

The benefit is not available to companies and entities in ordinary liquidation, subject to judicial liquidation or other liquidation procedures related to business crisis.

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