With reference to the tax treatment of donations to employees, please note the following.
Pursuant to Article 51(1) and (3) of the Income Tax Consolidation Act and as confirmed by the Inland Revenue Agency in Circular no. 59/E of 22.10.2008 and, more recently, following the provisions set forth in the Budget Law 2024, liberal donations:
- in cash concur entirely to income formation from employment, so they will be taxable for both IRPEF and INPS purposes;
- in kind, including paper or electronic vouchers (e.g. Amazon vouchers, fuel vouchers, etc.), pursuant to Article 1, paragraphs 16 and 17 of Law No. 213 of 30.12.2023 NOT contribute to the formation of income up to a value of euro 1,000.00 for 2024 (instead of the ordinary euro 258.23); above this threshold, they concur entirely to the formation of income; if, however, the employee has dependent children for tax purposes, the exemption threshold is raised for 2024 to euro 2,000.00.
Finally, pursuant to Article 1, paragraph 18 of Law No. 213 of 30.12.2023, for bonuses and sums paid in the year 2024, the IRPEF substitute tax rate on productivity bonuses is reduced to 5 per cent in the presence of second-level company agreements, while still incurring the same INPS contribution rates on the company and employee sides.
While remaining at your disposal for any doubts or requests for clarification, we would like to take this opportunity to extend our best regards to all.