New Draft on Tax Matters: Simplifying Access to Benefits and Ensuring Fair Rewards for Performance

The Council of Ministers has delayed the implementation of a new legislative decree on tax matters, which includes changes to IRPEF and IRES. The draft text contains provisions for benefits related to the thirteenth month’s salary and taxation of productivity bonuses. For 2024, employees with a total income not exceeding 28,000 euros will receive an allowance of up to 100 euros per child. The allowance will be defined by a decree from the Ministry of Economy and Finance.

The draft also confirms that performance bonuses paid from January 1, 2025, will be taxed at 10% within a ceiling of 3 thousand euros. This tax will apply to performance bonuses linked to indicators such as productivity, profitability, quality, efficiency, innovation and other factors defined by collective bargaining agreements.

To simplify access to tax benefits for productivity bonuses, some changes have been made in the draft text. In order to streamline access to these benefits, certain requirements have been eliminated. The application of the Irpef substitute tax and related additional taxes is now linked solely to the provision of productivity bonuses based on various indicators.

Overall, this draft aims to improve access to tax benefits for employees while simplifying the process and ensuring fair distribution of rewards based on performance indicators.