New legislative changes regarding tax matters, including updates to IRPEF and IRES, are yet to be approved by the Council of Ministers. The proposed changes aim to provide benefits for employees’ thirteenth-month salary and taxation of productivity bonuses. Under certain conditions, employees with a total income not exceeding 28,000 euros in 2024 could receive an allowance of up to 100 euros per month.
The draft decree also outlines that performance bonuses paid from January 1, 2025, will be subject to a 10% tax within a ceiling of 3,000 euros. This tax is in lieu of personal income tax and additional regional and municipal taxes and applies to bonuses linked to indicators such as productivity, profitability, quality, efficiency, innovation, reputation, and social responsibility.
Another change is that temporary early supplementary income (Rita) will only be recognized for employment termination not related to pension requirements starting from January 1st, 2025. The decree aims to simplify and rationalize current regulations while encouraging wider access to tax measures for employees.
Moreover, the draft addresses the need to remove obstacles hindering access to favorable measures for employees while providing data on the number of workers benefiting from productivity bonuses. Changes are being made to streamline the process of accessing tax measures while supporting company rewards for workers. The decree emphasizes the importance of capturing individual company dynamics while ensuring fair rewards without solely focusing on numerical increases in productivity indicators.
In conclusion, these legislative changes highlight the government’s commitment towards simplifying and promoting fairness in the tax system while providing benefits for employees’ financial wellbeing.