Categories: News


1 Jul 2010

Wages linked to productivity gains: the government grant is confirmed

Article 2, paragraph 156, of the 2010 Financial Bill confirmed for year 2011 the possibility to apply the tax substituting the personal income tax (so called “IRPEF”) and the additional municipal tax in the limit of 10% (introduced by Law n. 126/2008) on those wages linked to productivity, quality, earning capacity or to results concerning the economic trend of the company. Here are some specifications on the matter: (i) the beneficiaries of the present tax concession are the employees of the private sector whose salary does not exceed a gross amount equal to Euro 35.000 each; they can apply the tax within the limit of a gross amount equal to Euro 6.000 euro and; (ii) the substitute tax is automatically applied by the substitute, except in case of written waiver of the employee; (iii) it is advisable to estimate the advantage deriving from the application of this facilitated tax system with respect to the ordinary taxation. In fact, should the facilitated tax system be applied, it will not be possible to apply further tax bonuses deduction on the amounts already covered by the substitute tax. Moreover, the income after tax shall be taken into consideration in order to apply for the admission to the social security and welfare benefits (i.e. for the request of the household cheque), which, if necessary, shall be consequently reduced.
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