- Changes in fringe benefits and company cars in 2025 affect cost deductions and VAT
- Fringe benefits are non-cash compensations to improve employee conditions and productivity
- According to D.P.R. 917/1988, fringe benefits are not considered taxable income if they do not exceed a certain threshold
- Common benefits include company car use, shopping vouchers, childcare services, insurance policies, fuel vouchers, access to devices, company-provided housing, and reimbursements for housing expenses
- The 2025 Budget Law confirmed the tax exemption limits from 2024, with a threshold of 258.23 euros
- If the threshold is exceeded, the entire value of fringe benefits is taxable for IRPEF and affects regional and municipal taxes, as well as social security contributions
- The 2025 Budget Law introduced a higher tax exemption threshold for 2025-2027
- The calculation method for taxable income from company cars now considers vehicle type, not just CO2 emissions
- A new benefit for new permanent employees relocating for work includes tax exemption for rent payments
Source: commercialistatelematico.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
