Italy Tax Agency Clarifies Individual Income Tax Treatment of Health Insurance for Employees Working Abroad

The Italian Revenue Agency Sept. 18 issued Letter No. 249/2025, clarifying the individual income tax treatment of health insurance premiums for public employees working abroad. The taxpayer, a public entity, provided health insurance to its employees assigned abroad. The taxpayer paid the portion of the premiums for the employees’ insurance, and employees paid any portion for their dependents. The taxpayer sought clarification as to the correct tax regime when the insurance was provided to employees and dependents located abroad, but was legally required because the foreign country didn’t provide direct healthcare. Upon review, the Tax Agency clarified that: 1) the ...