On 29 December the Chamber definitively approved Law no. 213/2023 "State budget forecast for the financial year 2024 and multi-year budget for the three-year period 2024-2026 " (the so-called 2024 Budget Law). Let's talk about the new Stability law, which has notable impacts and innovations on corporate welfare issues.
The Law was published in the Official Journal no. 303 Ordinary Supplement of 30.12.2023 and is in force from 1 January 2024.
What are we talking about? Let's find out together and better understand what effects it brings to the company.
Stability Law 2023: what does the budget measure include?
The stability law ( ex. financial law ), also known as budget law or economic maneuver or just as maneuver , is an ordinary law of the Italian Republic, designed on a proposal from the government with the aim of regulating the economic policy of the country for a entire three-year period.
As regards the most recent of the economic measures, we propose below a summary of the main measures in favor of workers, businesses and families :
● confirmation of the cut in the tax wedge ;
● tax relief on Fringe Benefits
● preferential taxation of performance bonuses ;
● confirmation of benefits for workers in specific sectors (such as the tourism, hospitality and spa sectors);
● renewals of public administration collective agreements ;
● efficiency improvement of the RUNTS offices;
● combating contribution evasion in the domestic work sector;
● telematic compensation of INPS and INAIL credits;
● new provisions for retirement (social security buyout, contribution obligations, women's option, Quota 103...)
● greater protection for women and families (maternity and paternity bonuses, nursery bonuses and more...).
These are just some of the many innovations that the new 2023 stability law aims to bring between 2024 and 2026, with the aim of improving working conditions, especially for the "weakest".
But, within such a substantial three-year reform, what are actually the new developments regarding Welfare?
Stability Law 2023 and Welfare: what changes?
Let's try to sum up the interventions regarding Corporate Welfare, within the new 2023 stability law.
The content of what were the articles. 6 and 7 of the Bill has been divided into paragraphs 16, 17 and 18 of the art. 1 of the Law as follows:
● 16. Limited to the 2024 tax period, in derogation of the provisions of article 51 , paragraph 3, first part of the third period, of the consolidated income tax text, pursuant to the decree of the President of the Republic of 22 December 1986, n. . 917, the value of the goods sold and services provided to employees, as well as the sums paid or reimbursed to the same workers by the employers for the payment of the household utilities of the integrated water service, electricity and natural gas, expenses for renting the first home or interest on the mortgage relating to the first home.
The limit referred to in the first period is raised to €2,000 for employees with children , including recognized children born out of wedlock and adopted or foster children, who find themselves in the conditions provided for by article 12 , paragraph 2, of the aforementioned text of income taxes, as per the decree of the President of the Republic no. 917 of 1986. Employers ensure the implementation of this paragraph after informing the unitary trade union representatives where present.
● 17. The limit referred to in paragraph 16, second sentence, applies if the employee declares to the employer that he is entitled to it, indicating the tax code of the children.
● 18. For the bonuses and sums paid in the year 2024 , the rate of the substitute tax on productivity bonuses, referred to in article 1, paragraph 182, of law no. 28 December 2015. 208 , is reduced to 5%.
New stability law 2023 and Fringe Benefit
In addition to the re-proposal of the reduction of the contribution threshold for production bonuses not converted into Welfare (from 10% to 5%) , the new features are those that had already been anticipated:
● the "basic" Fringe Benefit threshold will be €1,000 for everyone (natural regime which does not require requirements and/or obligations to be recognised);
● the "integrated" Fringe Benefit threshold will be €2,000 for employees with dependent children.
The Fringe Benefit threshold can therefore be used, in addition to goods and services (as already provided for by art. 51 co 3), also:
● for the payment of household utilities ;
● for the payment of the costs of renting the first home ;
● for the interest on the mortgage relating to the first home.
In conclusion, the main NEW thing for Welfare is therefore the fact that even employees without dependent children will be able to take advantage (within the relevant reference threshold) of the benefits previously reserved only for those who have dependent children, thus reducing the gap subjectively detected with the measurement expected in 2023.
There are still several aspects that require greater study from a practical and bureaucratic point of view, but Ade will certainly provide the necessary specifications in the coming months.