In the Italian panorama, the "3000 euro Fringe Benefits" represent a relatively new topic and therefore of increasing interest.
This benefit offers a greater economic advantage to workers and their families, raising the maximum threshold of fringe benefits to €3,000.
In 2022, the Aiuti bis Decree had raised the tax threshold for fringe benefits from 258.23 to 600 euros per year per employee, subsequently with the Aid Quater Decree the threshold was further raised up to €3000 in order to support the workforce in paying household utilities. The 2023 Labor Decree therefore confirmed this provision for the entire current year, for 2024 there is currently a proposal on the table with a lower threshold.
But what exactly are Fringe Benefits and what is included in the €3000 that can be spent? How do they work? What are the requirements to be able to take advantage of it?
In this article, we will explore this topic in detail, addressing the main questions that arise among workers and employers.
What are the new 3000 euro Fringe Benefits?
The 3000 euro Fringe Benefits represent a tax benefit introduced to incentivize families and workers.
The benefit is applicable - in full - to each parent, holder of income from employment or similar, in the presence of one or more dependent children for tax purposes.
Children with an annual income not exceeding 2,840.51 euros (before deductible expenses) are considered dependent. The threshold rises to 4000, gross of deductible expenses, if the children are aged less than or equal to 24 years.
Speaking of Fringe Benefit, as we now know, we are referring to a non-monetary advantage , which in this case has a maximum value of 3000 euros per year for each beneficiary.
This benefit can be used to cover:
● education-related expenses,
● to culture,
● to sport,
● to sustainable mobility,
● and so on.
A significant difference between the Fringe at €3000 compared to the classic ones at €258.23 is that in the first case the available threshold can also be used for the reimbursement of utilities.
It is important to note that the Fringe Benefit does not represent an additional salary or compensation, but rather a benefit that reduces the tax burden for both the employee and the employer.
If you want to know more about the advantages of corporate welfare for the company and their taxation, read the dedicated articles!
How do they work and who is entitled to the 3000 euro Fringe Benefit?
These Fringe Benefits are accessible to different groups of workers.
They can benefit from the Fringe Benefit 3000 euros
● employees with permanent contracts ;
● coordinated and continuous collaborators;
● self-employed workers who carry out their business on a constant basis.
Furthermore, these benefits can be requested by parents with dependent children* and can be used for expenses related to their children's education or for other specific purposes, such as purchasing books or enrolling in training courses.
*The Fringe Benefit 3000 can reach a maximum total value of 3,200 euros per year for employees with dependent children or 458.23 euros per year for employees without children. This because the fringe can be combined with the fuel voucher measure of Legislative Decree 5/2023. In this case, however, we must pay attention: the additional 200 euros are not strictly fringe and are also strictly linked to the fact that they must be "petrol vouchers" and taxable from a contributory point of view (except in the case of residual capacity of the fringe pocket ).
To be considered "dependent of the parent", the child must have an annual income of less than 2,840.51 euros (including deductible expenses) or be under the age of 24 and an income threshold of less than 4,000 euros (these parameters are verified at the end of each year to establish their validity).
The benefit is available to both parents at 50% each.
Fringe Benefit 3000 euros: what does the Labor Decree say?
The €3000 Fringe Benefits are regulated according to the provisions contained in the Labor Decree , which establishes the conditions and requirements for obtaining this form of corporate welfare.
The decree offers clear guidance on how to apply, the necessary documents and the time limits to be respected.
it is essential that employers and workers are aware of these provisions in order to obtain the benefit correctly.
How to request the 3000 euro Fringe Benefit: the necessary documentation also for parents
The documentation necessary to access the Fringe Benefit is a declaration to the employer stating that you are entitled to it and indicating the tax codes of the children. However, documentation may vary depending on the country, local tax laws and specific company policies.
However, below are the steps generally required:
- check the specific company policies regarding Fringe Benefits.
- Obtain a receipt or invoice, certifying the purchase or use of the benefit.
- Declare the value of the Fringe Benefit and provide documentation to support it. For example, if it is a training course registration fee, you may need to provide confirmation of payment.
- Submit an updated tax return .
- Fill in the form or specific request , to be delivered to the employer, according to company procedures.
- Respect the terms and deadlines established each year by the decree, to request and benefit from the Fringe Benefits.
For parents who intend to benefit from the 3000 euro Fringe Benefit, it is equally essential to collect the documentation correctly.
This documentation may vary depending on expenses incurred and intended use of the benefit.
For example, if parents wish to use the benefit to cover educational expenses, they will need to provide documents such as enrollment receipts for schools, courses or training institutes.
It is therefore important to keep accurate records of expenses incurred and retain receipts, to demonstrate correct use of the Fringe Benefit.
Can the 3000 euro Fringe Benefit be combined with other benefits?
An important aspect to consider regarding the 3000 euro Fringe Benefits is their possible cumulation with other tax breaks.
For example, it is possible to accumulate this benefit with the Fuel Bonus , which offers incentives for the use of ecological means of transport.
This can translate into further economic benefit for workers and their families, while promoting sustainable mobility.
What is the deadline to request the €3000 Fringe Benefits
As mentioned, it is essential to respect the terms and deadlines established for the request and use of the 3000 euro Fringe Benefit.
The Labor Decree clearly establishes the period in which it is possible to submit the application and the time limits for using the benefit.
The deadline is generally made to coincide by the decree with the end of the year (31 December) , but it is the company that presents the documentation, which therefore must be provided by the employee in advance, based on the deadlines established by the employer.
Ignoring these deadlines could result in the loss of the benefit, so it is important to be informed and punctual in managing Fringe Benefits.
In conclusion, the €3000 Fringe Benefits represent a precious opportunity for workers and their family members.
Understanding how they work, who is entitled to them and what documents are needed to obtain them is obviously fundamental. Compliance with the Labor Decree and knowledge of the terms are the key to ensuring correct and advantageous use of this tax break.
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