New Legislative Decree on Tax Matters Postponed: What You Need to Know About Changes to IRPEF and IRES

The new legislative decree on tax matters, which includes changes to IRPEF and IRES, has been postponed in the Council of Ministers. The draft was expected to contain provisions regarding benefits for the thirteenth month’s salary and the taxation of productivity bonuses. Specifically, it proposed an allowance of up to 100 euros for employees with a total income not exceeding 28,000 euros in 2024, under certain conditions.

The draft 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 of productivity, profitability, quality, efficiency, innovation, reputation, and social responsibility.

In addition to simplifying and rationalizing current regulations to encourage wider access to tax measures for employees, the decree addresses the need to remove obstacles hindering access to favorable measures for employees. Data on the number of workers benefiting from productivity bonuses is also provided. Changes are being made to streamline the process of accessing tax measures and to support company rewards for workers. The decree highlights the importance of capturing individual company dynamics and ensuring fair rewards without solely focusing on numerical increases in productivity indicators.