2024 corporate welfare bonus of up to 2,000 euros, 15% for tourism workers and redemption of periods not covered by pay. GUIDE


By John

2024 corporate welfare bonus of up to 2,000 euros, 15% for tourism workers and redemption of periods not covered by pay.

The Agency's indications on the news regarding income from employment introduced by the 2024 Budget Law and the Advances Decree. With today's circular, the Revenue illustrates the new measures for corporate welfarethe special supplementary treatment for workers of tourism, hospitality and spa sectors and the tax effects relating to the rules on redemption of periods not covered by pay.

Among the new features, tax-free “bonuses” include not only the sums paid or reimbursed by employers to employees for the payment of Household utilities, but also those for the rent and for the interest on the mortgage of the first home. The limit within which it is possible to recognize tax-exempt goods and services, ordinarily set at 258.23 euros, is established at one thousand euros, with a further increase to 2 thousand euros for employees with dependent children.

Corporate Welfare and Fringe Benefits

The circular reviews some of the news regarding corporate welfare. The 2024 Budget Law establishes that the goods and services provided and the sums paid or reimbursed to workers do not contribute to employee income, within the limit of one thousand euros. This ceiling rises to 2 thousand euros if the employee has dependent children. Between fringe benefits not only the sums for the payment of the Household utilities (electricity, water and gas), but also those for the rent or interest on the mortgage of the worker's main home, even if the rental contract or mortgage is registered in the name of the employee's spouse or another family member. The Agency also provides clarifications on the methods for determining the compensation in kind in the case of loans granted to the worker, with particular regard to the official reference rate (Tur) and on the reduction of the substitute tax rate on performance bonuses from 10 to 5%.

Support for the Tourism Sector

The Agency recalls that in order to support the sector tourism, hospitality and spa, the latest budget law also recognizes in favor of workers in food and drink administration establishments and for those in the tourism sector, including spa establishments, a special supplementary treatment, which does not contribute to the formation of income, equal to 15%. The measure refers to services rendered between 1 January 2024 and 30 June 2024 by employees with incomes not exceeding 40 thousand euros for the 2023 tax period. The benefit is calculated on the gross salary paid for overtime work on public holidays or during the night. The employer, starting from the first useful salary and, in any case within the deadline for carrying out the end-of-year adjustment operations, provides the special supplementary treatment as a withholding tax, then indicating the amount in the employee's single certification relating to the tax period 2024.

Tax Effects of Pension Redemption

Finally, the circular takes stock of the fiscal effects of the new measures regarding redemption for pension purposes of periods not covered by pay. On an experimental basis for the two-year period 2024-2025, those enrolled in one of the social security management systems administered by the INPS, who do not have a pension and have no seniority in contributions as of 31 December 1995, can redeem the periods prior to the entry into force of the Budget law including between the year of the first and the last accredited contribution. Specific conditions are foreseen for the application and the redeemable periods cannot exceed 5 years, even if not continuous. The employee can ask their employer to bear the cost of the redemption using i production bonuses due to the worker.