Italy Tax Agency Issues Circular on Legislative Changes for Taxation of Employee Income

The Italian Revenue Agency March 7 issued Circular No. 5/E, providing instructions on recent tax law changes from the 2024 budget law and tax legislation. Topics covered include: 1) temporary tax exemptions for specific employee benefits, including utility reimbursements and food benefits up to 2,000 euros (US$2,186); 2) a reduced 5 percent substitute tax rate on performance bonuses and company profit sharing in 2024; 3) changes to taxation of employee loan benefits; 4) a special 15 percent income exemption for night and holiday work in the tourism, hospitality, and food and beverage sectors, from Jan. 1 to June 30; and ...