Italy Tax Agency Issues Resolution Clarifying Taxation of Specified Indemnities Paid to Employees Upon Termination

The Italian Revenue Agency July 23 issued Resolution No. 40, clarifying the taxation of specified indemnities paid to employees upon termination. The taxpayer, a bank, reached an agreement with multiple employees for the consensual termination of their employment relationship with the taxpayer. The taxpayer sought clarification on the application of the specified relief regime with respect to indemnities paid to employees as an incentive to leave and as a settlement amount. The Tax Agency clarified that: 1) the payment of the specified indemnities are subject to the separate taxation regime for amounts up to 1 million euros (US$1.1 million), and ...