Italy Tax Agency Clarifies Fringe Benefit Taxation Rules for Mixed Use Company Vehicles

The Italian Revenue Agency Sept. 9 issued Letter No. 233/2025, clarifying the fringe benefit taxation rules for mixed use company vehicles provided to employees. The taxpayer, an employer, planned to allow its employees to request certain features in company vehicles, with the costs charged through payroll deductions. The taxpayer sought clarification regarding the tax treatment of the costs for the optional features. Upon review, the Tax Agency clarified that: 1) if the taxpayer withheld additional amounts to cover the costs of optional features that weren’t included in the flat-rate fringe benefit taxable values in the specified tables, then the amounts ...