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

The Italian Revenue Agency July 22 issued Letter No. 192/2025, clarifying transitional fringe benefit taxation rules for company vehicles provided to employees for mixed use. The taxpayer, a company, signed vehicle assignment contracts with employees before Jan. 1 and sought clarification regarding whether the new percentages for calculating fringe benefits under contracts signed from Jan. 1 applied. Upon review, the Tax Agency clarified that: 1) the transitional regime didn’t apply because the vehicle registration and delivery didn’t occur by Dec. 31, 2024; 2) the new rules didn’t apply because the contract signing, registration, and delivery didn’t all occur in 2025; ...