Italy

The Italian Budget Law for fiscal year (FY) 2025 introduced some changes regarding:

• The reduction of brackets for personal income taxation, which become a final measure.

• The amendment to the tax deductions for employment incomes, which become a final measure.
• The reduction of rates for tax deductions and of expense thresholds linked to building renovation expenses.
• The amendment to the tax deductions for family dependants.
• The new rules to determine the taxable base of company cars awarded to employees for personal and business use.
• The reduction of tax rate for productivity bonus. The measure is valid for the years 2025, 2026, and 2027.
• The confirmation of annual tax-free thresholds for fringe benefits awarded to employees.