Italy: Expenses Reimbursement, Study Grants, and Performance Bonus Deductions

June 17, 2021
1 min read
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The Italian Inland Revenue Agency recently made several changes to the way employee income is taxed.

Agile Working and Expenses Claims

Sums paid to reimburse employees for any expenses incurred while performing agile work (such as, for example, electricity bills) are excluded from taxation.

Editor’s note: at the time of publication, there were some cases where the Agency deemed the expense taxable. Please check with your local authority to confirm.

Company Welfare Programs and Study Grants

Study grants awarded to the children of employees within a company welfare program must be taxed – regardless of academic performance.

Deductions for Performance Bonuses and Relevant Periods

Through a collective agreement, employers and employees can agree on the appropriate period for the application of tax deductions to performance bonuses.

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