Tax measures for corporate welfare

Misure fiscali per il welfare aziendale

Country	Italy , applies nationwide
Time period	Temporary, 01 January 2023 – 31 December 2027
Context	War in Ukraine, Cost of Living Crisis
Type	Legislations or other statutory regulations
Category	Promoting the economic, labour market and social recovery into a green future – Increasing income in general
Author	Alessandro Smilari (Fondazione Giacomo Brodolini)
Measure added	06 June 2023 (updated 19 March 2025)

Background information

The Labour Decree (D.L. n. 48/2023) increased the exemption limit for fringe benefits to €3,000 for employees with dependent children. This measure is a response to the need for additional support for families with children. The law regulates this provision through Art. 40 of the decree, which outlines the criteria and conditions of eligibility for the bonus.

Content of measure

The measure covers employees with children, including those born outside of recognised marriage, and adopted or foster children, who are fiscally dependent as per Art. 12 of the TUIR (Income Tax Consolidation Act). This benefit provides an increase in the fiscal and contributive exemption ceiling for goods and services provided by the employer, from a regular value of €258.23 to €3,000. Included within the €3,000 limit are sums issued or refunded for the payment of domestic utility bills for integrated water services, electricity, and natural gas. The employer must inform the unitary union representations, and the worker must declare their eligibility for the bonus and provide the tax code of their dependent children. For workers without dependent children, the exemption limit remains at €258.23. The benefit is set for the fiscal year 2023.

Updates

The following updates to this measure have been made after it came into effect.

06 November 2024

The 2025 Italian Budget Law extends workplace benefits reform, maintaining the increased tax-free allowance for fringe benefits until 2027. Additionally, it introduces tax relief on rental payments for newly hired employees who relocate their residence more than 100 kilometres from their new workplace.

Use of measure

No data available

Target groups

Workers	Businesses	Citizens
Parents in employment Single parents in employment	Does not apply to businesses	Does not apply to citizens

Actors and funding

Actors	Funding
National government Trade unions Employers' organisations Company / Companies	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	Consulted	Consulted
Form	Any other form of consultation, institutionalised (as stable working groups or committees) or informal	Any other form of consultation, institutionalised (as stable working groups or committees) or informal

Social partners' role in the implementation, monitoring and assessment phase:

Only trade unions
Main level of involvement: Unknown

Involvement

We do not have the information on who participated in the designing of the measure. Regarding the implementation, trade unions play a critical role in the implementation of the measure as outlined in the Labour Decree. The law mandates that employers inform the unitary union representations about the enhanced bonus scheme.

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