1. Fringe Benefits Tax Year 2023 – Raising the Threshold to € 3.000 – Conditions

As a reminder, for the year 2023, the non-taxable threshold for fringe benefits is € 3.000 for employees with at least one dependent child only. Such benefits may also be paid only to certain employees at the employer’s discretion.

The limit of €  3.000 is not reduced if the child is 50 per cent dependent, the two working parents will be able to benefit from an overall limit of  €  6.000.

For other employees, the threshold up to € 258,23 for no taxation remains unchanged.

It should be noted that cars granted for private use to workers are considered fringe benefits.

Therefore, it is advisable to check the monthly value of the car fringe benefits granted to employees on the pay slip to see whether or not the yearly total exceeds the amount of € 3.000.

1.1 Dependent Children

Children are considered fiscally dependent, pursuant to Article 12 co. 2 of the Consolidated Income Tax Act:

• if they are under 24 years of age and have received a total income of € 4.000 or less during the year;
• if they are over 24 years of age and have received a total annual income of no more than € 2.840,51.

1.2 Extension to Households

Kindly note that for the purpose of this law are also considered fringe benefits the amounts paid or reimbursed to the above-mentioned employees (employees with at least one dependent child) by their employers for the payment of domestic utility bills relating to

• to the integrated water service;
• electricity;
• natural gas.

1.3 Declaration to the Employer

The employee must declare to the employer the right to make use of the higher threshold, indicating the tax codes of the dependent children. Below a draft of the declaration: Self-Certification_fringe benefits

2. Facilitation Under 36

We would like to remind you that employers who hire by 31 December 2023 an employee with a no fixed term contract (or convert an employee currently employed on a fixed-term contract into a permanent one) who has never had a permanent contract of employment in his life, either in Italy or abroad, can benefit from a contribution facilitation for three years up to a maximum of € 8.000 per year.

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