New Legislation on Tax Matters for Employees: Simplifying Access to Benefits and Streamlining the Process

The Council of Ministers has decided to postpone the implementation of a new legislative decree on tax matters that was set to include changes to IRPEF and IRES. The draft text outlines several provisions related to benefits for the thirteenth month’s salary and taxation of productivity bonuses. For employees with a total income not exceeding 28,000 euros, who have a spouse and at least one child, there will be an allowance of up to 100 euros in 2024. This allowance will be defined by a decree from the Ministry of Economy and Finance.

The draft also confirms that performance bonuses paid from January 1, 2025, will be taxed at 10% within a ceiling of 3 thousand euros. This tax will apply to bonuses linked to indicators of productivity, profitability, quality, efficiency, innovation, and other factors defined by collective bargaining agreements.

In order to simplify access to tax benefits for productivity bonuses, some changes have been made in the draft. The application of the Irpef substitute tax and related additional taxes is now linked directly to the provision of productivity bonuses based on various indicators.

Additionally, the draft aims to streamline access to facilitation measures for employees by recognizing temporary early supplementary income only in cases where termination of employment is due to reasons other than reaching pension requirements. This change aims to make it easier for employees who are no longer working but still require financial support during this time.

Overall, the draft aims to improve access to tax benefits for employees while simplifying the process and ensuring a fair distribution of rewards based on performance indicators.