Tax, draft decree: productivity bonuses of up to EUR 3,000 taxed at 10 per cent
The decree will reportedly go to the Cabinet for preliminary examination next week. The measure marks the start of an initial implementation of the tax delegation for income from self-employment, employment, agricultural income and miscellaneous income
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The legislative decree on the revision of the IRPEF and IRES income tax system, initially expected at the Council of Ministers meeting on Tuesday 23 April, has been postponed. The measure, the drafts of which included the 13th month bonus, is not on the agenda of the meeting. The decree will reportedly go to the Cabinet for preliminary examination next week.
The government is therefore preparing to launch a revision of the income tax system for Irpef and Ires. The measure marks the start of a first implementation of the tax delegation for income from self-employment, employment, agricultural income and miscellaneous income.
Productivity bonuses up to EUR 3,000 taxed at 10%
Performance bonuses paid from 1 January 2025 will be taxed at 10 per cent up to a ceiling of EUR 3,000. This is provided for in a draft of the legislative decree on the revision of the Irpef and Ires regime. The result bonuses, 'unless expressly waived in writing by the employee, are subject to a substitute tax' 'equal to 10 per cent, within the overall amount limit of EUR 3,000 gross'. The same regime applies 'to sums paid in the form of participation in the company's profits'. This year, according to the latest manoeuvre, as in 2023, productivity bonuses are taxed at 5%.
In the chapter dedicated to employees, in the first drafts of the decree there was also a bonus of up to EUR 80 to increase the thirteenth month's income up to EUR 15,000. But the government's choice was to postpone for the time being any form of tax cut on the thirteenth month. Everything is postponed to the Nadef and to the next budget law, when there will be more certainty on the receipts from the two-year preventive agreement for VAT numbers.
Frozen for now, thirteenth month tax allowance with an extra EUR 80 for incomes up to EUR 15,000
Rita only if pension requirements not met
"As of 1 January 2025, the temporary supplementary early retirement pension (RITA) will be recognised only in the event of termination of employment for reasons other than reaching the pension requirement of any kind." This is what is stated in a draft of the legislative decree for the reform of indirect taxation expected in the Cdm tomorrow.
