News from the conversion law of the Advance Payment Decree
- giorgiafrisenda
- January 8, 2024
- Reading time: 2 min
News Flash No. 1/2024
On December 17, 2023, Law No. 191 came into force, converting Decree-Law No. 145/23 (known as the Advance Payment Decree).
The main changes in the field of employment are summarized below:
Fringe benefits on loans granted to employees
We would like to draw particular attention to the amendment to the tax legislation concerning loans granted by employers to employees, in view of the heavy burden that the previous legislation placed on employees, caused by the sudden rise in reference rates imposed by the ECB over the last year.
In Article 3 of Decree No. 145/23, after paragraph 3, paragraph 3-bis has been added, amending Article 51, paragraph 4, letter b) of the TUIR, whereby in the case of loans granted to employees, "50% of the difference between the amount of interest calculated at the official reference rate in force on the due date of each installment or, for fixed-rate loans, on the date the loan is granted, and the amount of interest at the rate applied to the loans."
Consequently, for the calculation of any fringe benefits: