Italy Tax Agency Clarifies Fringe Benefit Tax Rules for Mixed-Use Electric, Hybrid Plug-in Company Vehicles

The Italian Revenue Agency Sept. 10 issued Letter No. 237/2025, clarifying the fringe benefit tax rules for mixed-use electric and hybrid plug-in company vehicles. The taxpayer, an employer, planned to provide mixed-use electric and plug-in hybrid vehicles to managers and cover the costs for using public charging stations. The taxpayer sought clarification regarding the fringe benefit tax implications if the managers paid to charge the vehicles for private use after exceeding the kilometer limit. Upon review, the Tax Agency clarified that: 1) providing company cards at the taxpayer’s expense wouldn’t constitute an additional fringe benefit because they were included in ...