Pillar Two: The First Reporting Obligations Begin in 2026
Knowing good advice A distanza di oltre un anno dall’entrata in vigore delle nuove regole sulla tracciabilità dei pagamenti, è opportuno fare il punto sugli adempimenti che interessano imprese, amministratori, dipendenti e professionisti. Le modifiche introdotte dal D.Lgs. 192/2024 e dalla Legge di Bilancio 2025, successivamente chiarite dall’Agenzia delle Entrate con la Circolare n. 15/E del 22 dicembre 2025, hanno cambiato in modo significativo la gestione delle note spese e dei rimborsi, introducendo un principio destinato ad incidere concretamente sulla deducibilità dei costi e sulla fiscalità dei percipienti: non è più sufficiente documentare la spesa, ma occorre anche dimostrare che il pagamento sia stato effettuato con strumenti tracciabili. Trasferte: attenzione a vitto, alloggio, taxi e NCC Le disposizioni riguardano principalmente le spese sostenute in Italia durante trasferte e missioni, quali alberghi, ristoranti, taxi e servizi NCC. Le spese sostenute all’estero possono essere pagate in contanti senza comprometterne la deducibilità Quando tali costi sono anticipati da dipendenti o amministratori e successivamente rimborsati dall’azienda, il pagamento deve risultare effettuato mediante strumenti tracciabili, come carte di credito, bancomat, bonifici o applicazioni di pagamento elettronico. In mancanza di tale requisito, il rimborso potrebbe concorrere alla formazione del reddito del percipiente e il relativo costo potrebbe risultare indeducibile per l’impresa. Rimangono invece esclusi dall’obbligo di tracciabilità i trasporti effettuati con mezzi pubblici di linea, quali treni, metropolitane e autobus, parcheggi, rimborsi chilometrici, rimborsi forfettari Omaggi-Spese di rappresentanza: il contante diventa un rischio fiscale La stessa attenzione deve essere posta agli omaggi, alle spese di rappresentanza, come pranzi con clienti, eventi promozionali, ospitalità e iniziative commerciali. Dal 2025, oltre al rispetto dei requisiti di inerenza e congruità previsti dal TUIR, il pagamento deve risultare tracciabile per consentire la deducibilità della spesa. Lo scontrino o la fattura, in assenza della prova del pagamento tracciato, non sono più sufficienti se il pagamento è stato effettuato in contanti. Professionisti: cambia il regime dei riaddebiti Le novità interessano anche i lavoratori autonomi. Dal 2025 i rimborsi analitici delle spese sostenute dal professionista nell’esecuzione dell’incarico e addebitate al cliente non concorrono più alla formazione del reddito professionale. Di conseguenza, le medesime spese non risultano deducibili per il professionista che le ha sostenute se successivamente sono riaddebitate al committente in fattura in modo analitico Anche in questo caso la corretta documentazione e la prova della modalità di pagamento assumono un ruolo centrale nella gestione fiscale delle spese. Le verifiche che conviene fare nel 2026 A un anno dall’entrata in vigore delle nuove regole, imprese e studi professionali dovrebbero verificare che le proprie procedure interne prevedano: utilizzo prioritario di strumenti di pagamento tracciabili per trasferte e spese di rappresentanza; conservazione non solo del documento fiscale, ma anche della prova del pagamento tracciato; adeguate procedure per la gestione delle note spese di dipendenti e amministratori; corretta fatturazione (gestione) dei riaddebiti di spese ai clienti da parte dei professionisti. A oltre un anno dall’entrata in vigore delle nuove disposizioni, emerge con chiarezza che il tema centrale non è più soltanto la documentazione della spesa, ma anche la tracciabilità del relativo pagamento. Un adempimento apparentemente operativo che può incidere in modo significativo sulla deducibilità dei costi, sull’imponibilità dei rimborsi e, più in generale, sulla corretta determinazione del reddito d’impresa e di lavoro autonomo. Data di pubblicazione Autore Aree di attività Assistenza Fiscale (12) Assistenza Legale (2) Assistenza Societaria (1) Consulenza del lavoro (7) Kreston-TDL (1)
Pillar Two: The First Reporting Obligations Begin in 2026
Knowing good advice With the publication of the official tax return by the Italian Revenue Agency, the Pillar Two (Global Minimum Tax) regime enters its operational phase in Italy. The rules were introduced through Legislative Decree No. 209/2023, implementing EU Directive 2022/2523. Developed under the OECD/G20 Inclusive Framework, Pillar Two aims to ensure a minimum effective tax rate of 15% for multinational enterprise groups and, in certain circumstances, for large domestic groups. The regime applies to groups with consolidated revenues of at least €750 million in at least two of the four preceding fiscal years. The system is based on calculating the Effective Tax Rate (ETR) in each jurisdiction where the group operates. Where the effective tax rate falls below the 15% minimum threshold, a Top-Up Tax is levied to bridge the gap. In practical terms, the regime is designed to ensure that the profits generated by multinational groups are subject to a minimum level of taxation, regardless of the jurisdiction in which they are earned. The underlying objective is to reduce the tax advantages associated with shifting profits to jurisdictions offering particularly low levels of taxation. The legislation provides for three distinct mechanisms through which the Top-Up Tax may be collected: Qualified Domestic Minimum Top-up Tax (QDMTT), which grants the source jurisdiction the primary right to collect the additional tax; Income Inclusion Rule (IIR), generally applied at the level of the ultimate parent entity; andUndertaxed Profits Rule (UTPR), which operates as a residual mechanism where neither the QDMTT nor the IIR applies. Italy has implemented its own domestic QDMTT, referred to as the National Minimum Tax (Imposta Minima Nazionale). The Pillar Two rules apply to fiscal years beginning on or after 31 December 2023 and therefore, for taxpayers with a calendar-year accounting period, from the 2024 tax year onwards. However, 2026 represents the first real operational milestone, as it marks the beginning of the first filing and reporting obligations required under the new legislation. Affected groups will need to assess whether the rules apply to them and coordinate internally to ensure compliance with the new reporting requirements. To facilitate the initial implementation of the new regime, the legislator has introduced Transitional Safe Harbour provisions applicable to accounting periods beginning on or before 31 December 2026 and ending on or before 30 June 2028. Where specific conditions are met—relating, for example, to the size of the local business, the jurisdiction’s effective tax rate or the existence of sufficient economic substance—the Top-Up Tax may be deemed to be zero, thereby avoiding the need to apply the more complex Pillar Two computational rules. Eligibility for the Transitional Safe Harbour is based primarily on information contained in the group’s Country-by-Country Report (CbCR). This allows businesses to focus their compliance efforts on jurisdictions presenting a genuine low-tax risk while significantly reducing the administrative burden during the first years of implementation. For many multinational groups, assessing whether these simplification measures are available will represent one of the first key steps in their Pillar Two implementation project. Pillar Two introduces a fundamentally different approach from traditional international tax systems. Rather than focusing solely on the tax burden of each individual company, the new rules assess the overall effective tax rate achieved by the group in each jurisdiction. This requires a far more integrated approach to tax and financial reporting, together with continuous monitoring of the group’s international operations. From this perspective, Pillar Two represents a significant change for corporate tax departments, which must now consider not only the effects of domestic tax legislation but also the broader consequences that local tax positions may have across the multinational group. The introduction of the Global Minimum Tax also marks a gradual departure from the traditional model based exclusively on national tax legislation, strengthening the trend towards greater international tax coordination. Tax decisions taken in one jurisdiction may now have direct implications in other countries where the group operates, making globally coordinated tax planning increasingly important. In this context, businesses will need to pay close attention not only to monitoring effective tax rates across jurisdictions but also to the quality, consistency and reliability of the tax and accounting data used for Pillar Two calculations and future reporting obligations. Overall, Pillar Two represents one of the most significant developments in international taxation in recent years.It introduces entirely new obligations for multinational groups, requiring continuous monitoring of effective taxation across jurisdictions, greater coordination at group level and significantly enhanced tax governance.For businesses falling within its scope, the 2025–2026 period will be crucial in determining the correct application of the rules, implementing the necessary internal processes and preparing for the first reporting obligations under the Global Minimum Tax regime. Date of publication Author Areas of activity Assistenza Fiscale (11) Assistenza Legale (2) Assistenza Societaria (1) Consulenza del lavoro (5) Kreston-TDL (1)
Tax Changes for Third Sector Entities: What’s New from 2026
Knowing good advice The long-awaited tax reform for Third Sector Entities (Enti del Terzo Settore – ETS) will finally come into force in 2026, completing a legislative process that began several years ago with the enactment of the Third Sector Code (Legislative Decree No. 117/2017). Starting from the tax period following the one in progress as of 31 December 2025, therefore, from 1 January 2026 for entities whose financial year coincides with the calendar year, the provisions contained in Title X of the Third Sector Code will become fully effective. Their implementation is accompanied by the first official guidance issued by the Italian Revenue Agency through Circular No. 1 of 19 February 2026. The reform marks a fundamental shift in approach. The previous special tax regimes, most notably that applicable to ONLUS (non-profit organisations of social utility), are definitively abolished and replaced by a single, unified framework based on economic and substantive criteria. This new system requires organisations to adopt a more informed approach to managing their activities and interpreting their financial data. Registration with the National Third Sector Register (RUNTS) A cornerstone of the new framework is registration with the National Third Sector Register (RUNTS). Only organisations registered in the RUNTS may qualify as Third Sector Entities and benefit from the tax regime established by the Third Sector Code. Registration is therefore not merely a formal requirement but the essential prerequisite for accessing the entire package of tax incentives. The position of former ONLUS organisations deserves particular attention. As of 31 December 2025, the ONLUS regime officially comes to an end, and organisations still registered in the ONLUS Register are required to make a definitive choice: either apply for registration with the RUNTS by 31 March 2026, thereby obtaining retroactive tax effects from 1 January 2026, or, failing that, commence the procedures for transferring their assets in accordance with Legislative Decree No. 460/1997. 460/1997. Accordingly, the entry into force of the new regime marks the definitive end of the ONLUS framework. The tax benefits provided under Legislative Decree No. 460/1997 and Article 150 of the Italian Income Tax Code (TUIR) will cease to apply, giving way to a system that places greater emphasis on the economic substance of an organisation’s activities rather than on its legal form. A New Definition of Non-Commercial Activities of General Interest The most significant innovation introduced by the Third Sector Code concerns the assessment of whether activities of general interest qualify as non-commercial for direct tax purposes.Article 79 of the Code abandons the formal criteria previously applied and introduces an economic test based on the relationship between costs and revenues. Specifically, an activity of general interest is considered non-commercial where it is carried out free of charge or where the fees charged do not exceed the actual costs incurred by the organisation. For this purpose, costs include not only direct expenses but also indirect costs attributable to the activity, including depreciation, overheads and finance costs. Conversely, notional costs—such as the value of volunteer work—are excluded. The legislation also introduces an important tolerance rule. An activity will continue to qualify as non-commercial even if it generates a positive margin, provided that such margin does not exceed 6% of total costs and does not occur for more than three consecutive tax periods. Exceeding either of these thresholds results in the activity being classified as commercial. Commercial and Non-Commercial Third Sector Entities: The Predominance Test Once the nature of each individual activity has been determined, the next step is to classify the organisation as either a non-commercial ETS or a commercial ETS. To this end, the Third Sector Code introduces a predominance test comparing non-commercial income with commercial income. Non-commercial income includes, among other items, public and private grants, donations, membership fees not linked to specific services, income derived from non-commercial activities of general interest and proceeds from occasional fundraising events. Commercial income, on the other hand, includes revenues generated through activities carried out on a commercial basis, including ancillary business activities.Where commercial income becomes predominant, the organisation is classified as a commercial ETS, with the consequence that all income becomes subject to the ordinary business income tax rules. To mitigate the impact of the new regime, a transitional provision applies for the 2026 and 2027 tax years, under which any change in the entity’s status becomes effective only from the following financial year. Fundraising Activities and Public Grants Another important aspect of the reform concerns the tax treatment of fundraising activities.The Third Sector Code clearly distinguishes between occasional public fundraising events, organised in connection with celebrations or awareness campaigns, which remain tax-neutral for non-commercial ETSs, and ongoing fundraising activities involving consideration, which are instead treated as commercial activities. A similar approach applies to public grants. Such grants do not contribute to taxable income only where they are intended to finance activities of general interest carried out in accordance with the non-commercial criteria, and provided that the organisation, taken as a whole, maintains its status as a non-commercial ETS. Lump-Sum Tax Regimes: Simplification and Tax Benefits The reform introduces two simplified tax regimes of particular interest.The first, governed by Article 80 of the Third Sector Code, is available to non-commercial ETSs and allows taxable income to be determined by applying profitability coefficients ranging from 5% to 17%, depending on the level of revenues and the type of activity performed. The second regime, introduced by Article 86, is specifically designed for Volunteer Organisations (ODV) and Social Promotion Associations (APS). It may also be adopted by organisations classified as commercial, provided that annual revenues do not exceed €85,000.Under this regime, taxable income is calculated using highly favourable coefficients of 1% for ODV organisations and 3% for APS organisations, while also providing significant simplifications for VAT purposes. Final Considerations The year 2026 represents a genuine turning point for Third Sector Entities.The new tax framework requires a more structured approach to accounting and financial management, together with continuous monitoring of the economic balance of activities carried out in the public
2026 Super Depreciation: The Return of Enhanced Tax Deductions for Investments in Capital Assets
Knowing good advice With the 2026 Budget Law (Law No. 199 of 30 December 2025 199), the Italian legislator has once again revised the system of tax incentives for investments in newly acquired tangible and intangible capital assets, reintroducing the super depreciation regime (iperammortamento) to replace the Transition 4.0 and Transition 5.0 tax credits. The measure, governed by Article 1, paragraphs 427–436 of the aforementioned Law, continues Italy’s policy of supporting businesses’ technological transformation, while significantly changing both the underlying rationale and the practical mechanisms through which the incentive operates. The super depreciation regime applies to investments made between 1 January 2026 and 30 September 2028, providing a multi-year time horizon aimed at restoring greater certainty in investment planning after a period characterized by short-term incentive schemes and limited funding. Unlike tax credits, super depreciation operates through an increase in the tax basis of eligible assets. The benefit is therefore reflected in higher deductible depreciation charges and lease payments, directly reducing taxable income over the useful life of the investment. As a consequence, the incentive produces tax benefits only where the taxpayer generates taxable income. In loss-making years, the benefit is not forfeited but is deferred to subsequent tax periods. The additional deduction is relevant exclusively for IRES and IRPEF purposes, while it has no impact for IRAP purposes. The incentive is available to businesses earning business income that invest in capital assets intended for production facilities located within Italy. Companies undergoing liquidation, entities subject to insolvency proceedings without business continuity, and businesses subject to disqualifying sanctions are excluded from the regime. For eligibility purposes, only the date on which the investment is deemed to have been made is relevant, determined according to the ordinary tax accrual principles set out in Article 109 of the Italian Income Tax Code (TUIR). The enhanced deduction is structured according to the following investment brackets: 180% for investments up to €2.5 million; 100% for investments exceeding €2.5 million and up to €10 million; 50% for investments exceeding €10 million and up to €20 million. The scope of the incentive includes both tangible and intangible capital assets with a high technological content, as identified in the new Annexes IV and V to the Budget Law, which have been updated to reflect the ongoing digital transformation of manufacturing processes.The regime also covers investments related to the self-generation of energy from renewable sources for self-consumption, provided that the technical requirements established by the legislation are satisfied. Overall, the new super depreciation regime represents a highly attractive incentive for businesses. Its extended duration facilitates more effective long-term investment planning, while the updated annexes broaden the range of eligible assets and encourage the adoption of advanced technological solutions. However, one final step is still awaited: the implementing decree, expected within thirty days of the publication of the Budget Law. This decree will clarify the operational procedures, required documentation, and interaction with other available tax incentives, ultimately transforming the legislative framework into a fully operational tool for businesses. Date of publication Author Areas of activity Assistenza Fiscale (11) Assistenza Legale (2) Assistenza Societaria (1) Consulenza del lavoro (5) Kreston-TDL (1)
Building Renovations: What will change in 2025 and 2026
Knowing good advice 2025 marks the definitive end of credit transfers and invoice discounts for almost all building bonuses, following Law Decree 212/2023, converted into Law 17/2024. The concessions therefore return to ‘ordinary’ management, with tax deductions only available in tax returns. Law 207/2024 (2025 budget law), with clarifications from Inland Revenue Circular No. 8 dated 19th June 2025, and the most recent updates provided for in the 2026 budget bill, have revised the tax benefits as follows. For renovations pursuant to Article 16-bis of the TUIR (Consolidated Income Tax Law), the 50% deduction remains confirmed from 2025 only for the main residence and related appurtenances, while for other residences it returns to 36%, with a maximum expenditure limit of Euro 96,000 per property unit. This measure has currently been extended to 2026.Family members living with the owner of the main residence, if they have incurred the expenses, will no longer be able to benefit from the 50% deduction as in the past, but the benefit will be reduced to 36% from 2025. The deduction percentages for the Ecobonus and Sismabonus have also been standardized for 2025 and 2026 in a similar way to the deduction percentages and spending limits for renovation work. The Furniture Bonus, which is available for the purchase of furniture/large appliances for properties undergoing renovation, is set at 50% within the spending limit of Euro 5,000 for the years 2025 and 2026. For the Superbonus, on the other hand, for Sismabonus and Ecobonus interventions, without prejudice to the spending limits provided for individual interventions and not considering the numerous exceptions, the deduction percentages are set at 65% for 2025. Please note that for all work involving energy savings, the obligation to send a communication to ENEA remains unchanged. Currently, a general restructuring of the rates for all types of interventions for the year 2027 is already planned; this will be discussed in more detail in a subsequent article. Date of publication Author Areas of activity Assistenza Fiscale (9) Assistenza Legale (2) Consulenza del lavoro (3) Kreston-TDL (1)
Update on the implementation of tax reform
Knowing good advice Law No. 120 dated 8th August 2025, was published in the Official Gazette No. 184 dated 9th August 2025, amending Law No. 111 dated 9th August 2023, on “Authorisation to the Government for tax reform”. Law No. 111 dated 9th August 2023, authorised the Government to adopt one or more legislative decrees revising the tax system in accordance with constitutional principles and European Union and international law, based on the general and specific principles and guidelines set out in the Law itself. Initially, the Government had 24 months to complete the regulatory framework, meaning that the reform had to be completed by 29th August 2025. This deadline has recently been extended by one year (29th August 2026), as a result of the amendment provided for by Law No. 120 dated 8th August 2025. 120. A comprehensive reorganization of the provisions governing the tax system is also planned, through the drafting of consolidated texts. In the initial version, these texts were to be approved by 29th August 2024; the deadline was ultimately extended to 31st December 2026, as a result of the extension of the aforementioned Law No. 120/2025. 120/2025. In addition, a tax code containing the rules governing individual taxes will be prepared in order to simplify the tax system and increase the clarity and accessibility of tax regulations. This objective must be implemented within 12 months of the date of entry into force of the last of the legislative decrees relating to the reform. It should be noted that a number of legislative decrees have been preliminarily approved containing provisions on: the tertiary sector, business crises, and VAT; IRPEF (Personal Income Tax) and IRES (Corporate Income Tax), international taxation, inheritance and gift tax, registration tax, as well as amendments to the Taxpayers’ Charter and the Consolidated Tax Laws regional and local taxes and regional fiscal federalism. A special commission has recently been set up, whose members have been appointed by the Minister of the Higher Council of Economy and Finance to draft the new body of legislation. Date of publication Author Areas of activity Assistenza Fiscale (9) Assistenza Legale (2) Consulenza del lavoro (3) Kreston-TDL (1)
The Call-off Stock Regime: Regulations, Conditions, and Practical Application
Knowing good advice The call-off stock regime simplifies intra-Community transactions by allowing the supplier to transfer goods to another Member State without immediately carrying out a supply. Discover the requirements, timeframes, and tax implications for managing these transactions correctly. The call-off stock regime, governed by Legislative Decree No. 192 dated 5th November 2021 (which implements Article 17-bis of Directive 2006/112/EC), applies when a taxable subject transfers goods to a warehouse located in another EU Member State. In this case, the intended buyer is already identified (both in terms of identity and VAT identification number) at the time of transport and can remove the goods from the warehouse at a later time, acquiring ownership of them. The regime provides that: a) no intra-Community supply or intra-Community acquisition occurs at the time of dispatch or transport of the goods to the warehouse located in another Member State; b) the exempt intra-Community supply (in the Member State of departure) and the taxed intra-Community acquisition (in the Member State of arrival) occur only when the buyer removes the goods and acquires ownership of them. Conditions for applying the call-off stock regime To correctly apply the call-off stock regime, the following conditions must be met: The supplier and the intended buyer must be VAT taxable subjects. The supplier has not established its business establishment or a permanent establishment in the Member State of destination. The supplier must record the dispatch or transport of the goods in a special register. The goods must be transported from one Member State to another for subsequent supply to the intended buyer. The supplier must indicate the buyer’s VAT identification number in the INTRASTAT summary statement for the period in which the shipment occurs. The intended buyer must be identified for VAT purposes in the Member State of arrival. The buyer’s identity and VAT identification number must be known to the supplier at the time of shipment or transport. Completion of the intra-Community supply The intra-Community supply is also considered to have been completed in the following residual cases: The day after the expiry of 12 months from the arrival of the goods if they have not yet been supplied. When, within 12 months of arrival, one of the conditions set out in Article 41-bis, paragraph 1, ceases to be met. Before the supply, if within 12 months the goods are sold to a person other than the original buyer. Before shipment to another Member State, if the goods are further transported within 12 months. Loss of Tax Neutrality The tax neutrality regime lapses in the following cases: Destruction, loss, or theft of the goods. Replacement of the original purchaser, even if the call-off stock conditions and registration requirements are met. Sale of the goods to another Member State. Date of publication Author Areas of activity Assistenza Fiscale (7) Assistenza Legale (2) Consulenza del lavoro (2) Kreston-TDL (1)
Biennial Preventive Composition with Creditors: What it is, how it works, and what’s changing in 2025-2026
Knowing good advice The Biennial Preventive Composition with Creditors (CPB) is a measure introduced by Legislative Decree No. 13 dated 12th February 2024, to provide greater tax certainty and stability to professionals and businesses. This new measure, designed for those with business or self-employed income, allows such subjects to agree in advance with the Italian Inland Revenue Agency on their taxable income and net production value for the two-year period following adherence, on which taxes will be calculated. The Objectives of the Two-Year Preventive Composition with Creditors The CPB is part of a broader tax simplification process and aims to: Improve the relationship between taxpayers and the tax authorities Promote tax transparency Promote compliance with the Summary Reliability Indices (ISA) Reduce uncertainty related to potential audits Promote medium-term tax planning Renewal for the 2025-2026 two-year period: what the MEF provides In implementation of Article 9 of Legislative Decree 13/2024, the Ministry of Economy and Finance approved the new methodology for developing composition with creditors proposals for the 2025-2026 period with decree dated 28th April 2025. The implementing provision was published in the Official Gazette No. 117 dated 22nd May 2025 , making the new phase of the CPB operational. Who is eligible for the Two-Year Preventive Composition with Creditors? The legislation identifies three main categories of taxpayers: Those who have already joined the CPB for 2024-2025 Persons who accepted the proposal for the 2024-2025 two-year period do not need to renew their adherence for 2025: the composition with creditors regime will continue automatically, provided that the initial requirements remain met. New adherents for 2025-2026 Those who did not join the CPB in 2024 can now consider joining for the new two-year period 2025-2026.Acceptance of the proposal will take place via ISA tools, following the procedures defined by the MEF Decree, by 30th September 2025. Adherence for the 2026-2027 two-year period As provided forby Article 14 of Legislative Decree no. 13/2024 13/2024, once the first two-year period has concluded, if the requirements persist and no impediments arise, the Italian Inland Revenue Agency can formulate a new composition agreement proposal for the two-year period 2026-2027. Flat-rate taxpayers excluded from the CPB for 2025-2026 Participation in the CPB was experimented in 2024 for flat-rate taxpayers. However, for the two-year period 2025-2026, this option was not renewed: flat-rate taxpayers, therefore, remain excluded from the application of the composition agreement. Date of publication Author Areas of activity Assistenza Fiscale (7) Assistenza Legale (2) Consulenza del lavoro (2) Kreston-TDL (1)
Company car assigned to employees: mixed use, tax implications, and operating procedures
Knowing good advice a) Assignment of a car for mixed use The assignment of company cars to employees for mixed use is one of the most common forms of fringe benefits in Italy. It is a formula that allows the employee to use the company vehicle—typically a car, but sometimes also a motorcycle or scooter—both for work-related needs (travel, visiting customers or suppliers) and for personal purposes, such as weekends or leisure time. Hence the term “mixed use.” Company policies and formal agreements Vehicle assignment is governed by company policies that establish the terms of use, limitations, and any employee responsibilities. It is standard practice to prepare a formal communication informing the employee of the type of vehicle assigned, the conditions of use, and, where applicable, any amounts to be withheld from their payslips to cover costs exceeding company limits (e.g., choosing a higher-end vehicle, requesting additional accessories, etc.). Tax and Social Security Implications Given that the vehicle is used for both work and personal purposes, it effectively constitutes a marginal benefit for the employee, as they have the opportunity to enjoy an asset whose cost is borne by the employer, but which can also be freely used for personal and family needs. This benefit therefore has a tax and social security impact that must be quantified and managed. The quantification must first begin with an analysis that breaks down two distinct categories: The tax exemption limits for fringe benefits; The criteria for determining the economic value of the car benefit granted to the employee. Exemption Limits:According to the 2025 Budget Law (Law No. 207/2024), until 2027, the tax and social security exemption threshold for fringe benefits is equal to: Euro 000 for all workers; Euro 000 for workers with dependent children. If the total value of the car benefit (plus any other fringe benefits) is less than the established limit, there is no tax or social security impact. If it exceeds the limit, the entire amount becomes taxable. Consequences for the employer:In addition to the impact on the employee’s net pay, exceeding the limits also entails increased costs for the company, in terms of social security contributions and indirect costs. How is the value of the car benefit determined? The applicable legislation is Article 51, paragraph 4 of the TUIR (Consolidated Income Tax Act), which has been updated several times by the legislator to include environmental parameters in determining the benefit value. Below is a summary of the applicable criteria, broken down by period: Allocations until June 30, 2020Taxation of 30% on a conventional mileage of 15,000 km based on the ACI (Italian Automobile Club) mileage rate, net of any amounts withheld from the employee. Registration by 30th June 2020, allocation from 1st July 2020 to 31st December 2024Calculation of the normal value pursuant to Article 9 of the TUIR (leasing/rental rates), net of the portion related to business use. Registration and allocation from 1st July 2020 to 31st December 2024Variable percentage tax based on the vehicle’s pollution level, calculated on a standard mileage of 15,000 km based on the ACI (Italian Automobile Club) mileage rate, net of amounts withheld from the employee. Vehicle order by 31st December 2024, allocation from 1st January 2025 to 30th June 2025 Variable percentage tax based on the vehicle’s pollution level, calculated on a standard mileage of 15,000 km based on the ACI mileage rate tables, net of any amounts withheld from the employee. Order by 31st December 2024, allocation from 1st July 2025Variable tax from 10% to 50% depending on the vehicle’s drive system (electric, hybrid, gasoline, etc.) calculated on a standard mileage of 15,000 km based on the ACI mileage rate tables, net of any amounts withheld from the employee; Order, registration, and allocation from 1st January 2025Variable tax rate from 10% to 50% depending on the vehicle’s drivetrain (electric, hybrid, gasoline, etc.) calculated on a conventional mileage of 15,000 km based on the ACI mileage rate tables, net of amounts withheld from the employee. Interpretative doubts still open Some aspects remain unclear, including: What happens if the car was already in the company fleet but is allocated to a new employee in 2025? When should the normal value pursuant to Article 9 of the TUIR be adopted? On this last point, the Italian Inland Revenue Agency has previously clarified that in cases of leasing after 1st July 2020, with a vehicle registered before, the normal value of the asset must be applied, excluding the portion related to business use. This approach, however, presents several operational and management difficulties. An official clarification from the Italian Inland Revenue Agency remains desirable. b) Vehicle assignment without mixed use. What if the car is granted solely for business purposes? Finally, it is possible for the car to be allocated exclusively for business use. In this case, the employee accesses the vehicle only during working hours and leaves it at the company at the end of the day, returning home in another personal vehicle. Any personal use is prohibited and can result in disciplinary action. For the protection of the company, it is recommended that the employee sign a document clearly specifying all the rules of use. Date of publication Author Areas of activity Assistenza Fiscale (7) Assistenza Legale (2) Consulenza del lavoro (2) Kreston-TDL (1)
Legal collection and waiver of dividends: the italian Inland Revenue Agency clarifies with answer no. 59/2025 59/2025
Knowing good advice In its response torequest no. 59 dated 3 March 2025, the Italian Inland Revenue Agency addresses the issue of legal collection in relation to the waiver of dividends by shareholders, particularly when the dividends have already been approved by the company. In the case under analysis, the applicant company reports that: having approved the distribution of dividends when approving the 2020 financial statements; never having paid out the approved amounts; wishing to proceed with only a partial distribution of the approved dividends; having received confirmation from the shareholders (natural persons who are not entrepreneurs) that they waive the remaining portion, so that this amount can be allocated to the extraordinary reserve. Firstly, it should be noted that the legal collection argument is based on the principle that the sums waived by the shareholder have the same tax effect as if they had first been collected and then returned by the shareholder. More specifically, the waiver of receivables relating to income subject to cash taxation (such as directors’ remuneration) presupposes the legal collection of the receivable and therefore entails the obligation to tax such amounts, including through withholding tax (see Ministerial Circular No. 73/1994 and Inland Revenue Agency Resolution No. 124/2017). Returning to the specific case, the company retained that the dividend waived by a shareholder who was a natural person and not an entrepreneur did not generate any active tax effect, constituting a contingent asset under Article 88, paragraph 4-bis, of the TUIR. This position is based on the principle that the waiver does not alter the tax value of the shareholding, as confirmed by the Court of Cassation in its ruling no. 16595/2023. 16595/2023. However, in its response no. 59/2025, the Inland Revenue Agency reaches different conclusions, stating that this rule is not applicable to individual shareholders who are not entrepreneurs, as there is no difference between the tax value and the nominal value of the credit waived. In these cases, there is an increase in the tax value of the shareholding, with the consequent absence of taxable extraordinary income for IRES purposes. Finally, the Tax Office clarifies that waived dividends must be considered legally collected, making it necessary to apply the 26% withholding tax, without any obligation for the company to subject any extraordinary income to taxation. Date of publication Author Areas of activity Assistenza Fiscale (4)