Italy Tax Agency Clarifies Individual Taxation of Reimbursed Employee Expenses

The Italian Revenue Agency April 30 posted online Letter No. 314, clarifying the individual income tax treatment of employee expenses reimbursed by employers. A company hired employees under an agile work agreement, which allows its employees to have a flexible work arrangement, including remote work and flexible hours. The company reimbursed the employees for daily work-related expenses under the agreement. The company inquired as to the taxation of the reimbursements and the agency clarified that the reimbursements aren’t taxable as they are for business-related activities. [Italy, Revenue Agency, 04/30/21]

Reference:
View Letter No. 314. View Index.