Italy Tax Agency Clarifies Taxation of Employee Fringe Benefits Paid Through Nominative Debit Card

The Italian Revenue Agency issued Jan. 15 issued Answer No. 5/2025, clarifying the taxation of employee fringe benefits paid through a nominative debit card. The taxpayer, a company, planned to adopt a welfare program providing fringe benefits to employees through a nominative debit card, which can only be used at specific vendors and is non-transferable. The card can’t be converted into cash or used for other purposes than those specified. The taxpayer sought clarification on the withholding tax obligations regarding the benefits provided through the card. The Tax Agency clarified that: 1) when considering the specified spending constraints and card ...