Italy Tax Agency Clarifies Tax Treatment of Reimbursement for Employee Travel Expenses

The Italian Revenue Agency Jan. 31 clarified the taxation of employer reimbursement of employee parking expenses incurred during business travel. The clarification includes that the reimbursement amount is: 1) fully included in the employee’s income where the employer has adopted flat-rate or mixed systems; 2) treated as “other expenses” and excluded from taxable income up to a maximum amount of 15.49 euros (US$17.76) per day for trips abroad where the employer has adopted analytical reimbursement system. [Italy, Revenue Agency, 01/31/19]

Reference:
View Answer No. 5/2019. View Announcement.