News n.26/2023
On August 1, 2023, the Internal Revenue Service, through News No. 23/E provided interpretative clarifications on tax measures for corporate welfare, provided for in Article 40 of Decree No. 48/2023 (so-called: Labor Decree), converted, with amendments by Law No. 85 of July 3, 2023.
As a reminder, the aforementioned article established, limited to the 2023 tax period, exclusively for the benefit of employees with dependent children for tax purposes, an increase to 3,000 (three thousand) euros in the exemption limit of fringe benefits provided for in Article 51 paragraph 3 (third period) of the Consolidated Income Tax Act (TUIR) No. 917/1986 while, for all workers who do not have children for tax purposes, the exemption limit for 2023 remains at euro 258.23.
Included in the limit raised to only the category of employees with tax dependent children are. -sums disbursed or reimbursed to them by employers for the payment of household utilities for integrated water service, electricity and natural gas.-
Since the household utility payment measure also covered the tax year 2022, in order to avoid multiple use of the benefit in relation to the same expenses, amounts already paid to the employee and referring to bills issued in the year 2023 but related to consumption in the year 2022 cannot be considered for the purposes of the new benefit if already reimbursed by the employer previously by January 12, 2023.
The Internal Revenue Service has clarified the subjective scope, mode of application and objective scope of the facilitated measure.
Subjective scope
The measure applies to holders of income from employment and income assimilated to employment for which income is determined in accordance with the provisions of Article 51 of the TUIR.