TRACEABILITY OF EXPENSE REIMBURSEMENTS

The 2025 Budget Law has introduced several measures to improve expense traceability and combat tax evasion. For income tax purposes, deductions are now limited to payments made through traceable methods for expenses related to meals and accommodation, whether incurred directly or reimbursed on an itemised basis to employees, as well as travel and transport expenses […]

COMPANY CARS ASSIGNED FOR MIXED USE BY EMPLOYEES

For cars first registered in 2025 and assigned for mixed use by employees from 2025 onwards, the method for calculating the value of the fringe benefit has been revised based on the fuel type: Further guidance from the Inland Revenue Agency is still expected  regarding how to manage cars assigned at the turn of the […]

TAX RELIEF ON PERFORMANCE BONUSES

The temporary reduction in the substitute tax rate for IRPEF and the associated regional and municipal tax surcharges, from 10% to 5%, is extended to bonuses and payments made in 2025, 2026 and 2027. This reduction, already applicable to similar payments in 2023 and 2024, applies to certain types of remuneration, including performance bonuses and […]

TAX MEASURES FOR FRINGE BENEFITS AND EMPLOYEE WELFARE PROGRAMMES

The 2025 Budget Law has confirmed that, for the 2025, 2026 and 2027 tax years, the value of goods and services provided to employees, along with amounts paid or reimbursed by employers for domestic utility bills (integrated water services, electricity and natural gas), rent for the primary residence or interest on mortgages for the primary […]

TAX CREDITS FOR DEPENDENT CHILDREN

The Budget Law has introduced new rules for tax credits for dependent children. The tax credit is now only allowed for children under 30 years of age unless a disability has been certified.  The tax credit for dependent children is set at €950 for each child, including children born outside of marriage who are legally […]

SUPPLEMENTARY TAX CREDIT

The Budget Law has confirmed and made permanent a supplementary tax credit of up to €1,200 for individuals with a total income not exceeding €15,000. This tax credit is granted on the condition that the gross tax calculated on employment and assimilated income exceeds the amount of the work-related tax deduction, reduced by €75, proportionate […]

TAX WEDGE REDUCTION

The Budget Law has introduced a new measure to reduce the tax wedge, which, unlike the 2024 provision, does not involve lowering the employee’s contribution (previously 6% or 7%). Instead, this reduction will solely have fiscal effects. Two new measures have been introduced: the first is for employees (thus excluding assimilated income) with total income […]

IRPEF TAX BRACKETS AND EMPLOYEE INCOME

First, the 2025 Budget Law permanently reduces the number of IRPEF tax brackets from four to three, a change initially introduced for 2024 as an exception to the Consolidated Income Tax Act (TUIR) by Legislative Decree no. 216/2023. The updated progressive tax brackets are now as follows: In addition, the tax deduction for employment income […]

COLLECTIVE AGREEMENT – FOR THE TOURISM INDUSTRY

On 21 December 2024, the National Collective Labour Agreement (CCNL) for the Tourism Industry was renewed, with effect from 1 January 2025 and expiring on 31 December 2027. The key economic and regulatory updates are indicated below. An increase of €200 in consolidated base pay, applicable to the average C2 level, is scheduled to be […]

Collective Agreement – EXECUTIVES – Commercial Companies

Mario Negri – Supplementary Pension Scheme The additional contribution, including the contractual membership contribution, payable by the employer, will amount to 2.47% of the agreed annual salary starting from 1 January 2025. Welfare As per last year, a mandatory welfare contribution of €1,000.00 per year has been confirmed for 2025. This amount can be spent […]

Collective Agreement – Industrial Executives – Salary Increase

On the economic side, the renewal of the Collective Labour Agreement (CCNL) provides for an increase in the minimum guaranteed pay amount (TMCG) to €80,000 in 2025. There is also a one-off payment equal to 6% of annual remuneration in 2024 to cover contractual leave, payable to executives who meet the following requirements: The amount […]

Collective Agreement- Industrial Executives – Insurance Coverage

From 1 January 2025, the amount for the policy that the company provides to cover the executive in the event of death or permanent disability shall be €300,000.00 (three hundred thousand euros) if the executive has no dependent children or a spouse. The aforementioned amount must be €400,000.00 (four hundred thousand euros) if the household […]

QUOTA 103 RETIRMENT SCHEME

The Quota 103 scheme has been extended until 31 December 2025. The pension benefit is calculated using the contribution-based method and is capped at an amount equivalent to four times the minimum. The scheme also prohibits combining the benefit with employment income until statutory retirement age is reached. The eligibility criteria remain unchanged: 62 years […]

EARLY RETIREMENT FOR WOMEN

The so-called “Opzione Donna” early retirement scheme has been renewed. To qualify, female workers must have accrued 35 years of actual contributions and reached the age of 61 by 31 December 2024. The one-year reduction in the age requirement per child, up to a maximum of two years, has been confirmed, along with the waiting […]

APE SOCIAL SCHEME

The Budget Law has extended the APE Social scheme to include 2025 as well. This support scheme is available to specific categories of taxpayers, including long-term unemployed individuals, caregivers who are workers, disabled workers and employees engaged in strenuous occupations. Eligibility requires a minimum age of 63 years and 5 months and at least 30 […]

CONTRIBUTION RELIEF FOR WORKING MOTHERS

The contribution relief for working mothers has been confirmed and extended to include fixed-term employees and self-employed workers. From 1 January 2025, this relief will be available to working mothers with two or more children until their youngest child turns ten. From 2027, for mothers with three or more children, the contribution relief will apply […]

PARENTAL LEAVE

The parental leave allowance has been permanently increased to 80% of an individual’s salary for three months, available until the child turns six. For male and female employees who complete maternity or paternity leave from 1 January 2024 onwards, the allowance will be permanently increased to 80% of their salary for the second month of leave […]

NEW REQUIREMENTS FOR NASPI ALLOWANCES

For individuals who, in the 12 months before becoming unemployed on an involuntary basis, thus qualifying for NASPI, had voluntarily ended an open-ended employment contract through resignation or mutual agreement, at least 13 weeks of contributions must have been paid after the voluntary termination of the contract. This provision does not apply to resignations during […]

CHANGES TO THE FLAT-RATE TAX REGIME

For 2025, the income threshold for accessing the flat-rate tax regime has been raised to €35,000 for individuals who earned employment income or income assimilated to employment in the previous year. The previous threshold was €30,000.

FAVOURABLE TAXATION OF TIPS FOR HOSPITALITY AND FOOD SERVICE STAFF

The 2025 Budget Law has confirmed, while also including some updates, the special tax exemption scheme for tips received by employees in hospitality establishments and food and beverage service businesses. Specifically, for 2025, the income threshold for applying the reduced taxation has been raised from €50,000 to €75,000 per year, and the annual cap for […]

SUPER-DEDUCTION FOR PERSONNEL COSTS

The super-deduction for personnel costs, available to employers hiring new staff on open-ended contracts that result in a net increase in employment, is extended for the three-year period 2025–2027 under the same conditions as those applied in 2024. This measure increases the deductible personnel costs for employees hired between 1 January 2025 and 31 December […]

INCENTIVE TO POSTPONE EARLY-RETIREMENT

The incentive to postpone early-retirement, which allows workers to receive their share of IVS contributions tax-free in their payslip, has been extended to those who meet the early-retirement requirements, regardless of age, by 31 December 2025. The key new feature is the option for workers under the contribution-only system – those who started working on […]

QUAS: Increase in the mandatory contribution for collective agreements for HOTELS, TRAVEL AGENCIES, COMMERCE, FOOD AND BEVERAGE ESTABLISHMENTS AND TOURISMHealthcare Assistance Fund for Middle Managers

From 1 January 2025, for those enrolled in the Healthcare Assistance Fund established for Middle Managers in the Tertiary Sector (Qu.A.S.) the annual contribution is set at €360, payable by the employer, and €50, payable by the Middle Manager. From 1 January 2026, this annual contribution will increase to €380, payable by the employer, while […]