In 2024, the tax reform confirmed a series of bonuses and tax breaks aimed at citizens and businesses. These incentives aim to support those who are in good standing with their tax payments, those who invest, those who hire, and workers. In this detailed guide, we will analyze all the measures active in 2024, with a focus on how they work and who can use
them.
1. Cutting the tax wedge
The cut of the tax wedge has also been confirmed for 2024. This measure reduces labor costs through a contribution exemption of 6% for incomes of up to 35,000 euros and 7% for incomes of up to 25,000 euros. The benefit concerns both employees in the private sector and those in the public sector and will also be extended to 2025
.
2. Arranged biennial estimate
Starting in 2024, the two-year preventive arrangement was introduced, which allows holders of business income or self-employment to settle their tax debts with a two-year agreement. Registrations can be made by July 31 or by the last day of the seventh month following the close of the tax period
.
3. Flat tax 2024
The flat tax remains in force even in 2024, with some changes. Those who transfer their tax residence to Italy can opt for a replacement tax of 200,000 euros (instead of 100,000 euros) for each tax period. For the flat rate scheme, the reduced rate of 15% applies to incomes of up to 85,000 euros. In addition, the reduced taxation of 5% has been confirmed for production premiums of up to 3,000 euros
.
4. Tax reform 2024
The 2024 tax reform introduced important changes, including the IRPEF reform, the extension of the no tax area for retirees and employees, and changes to deductions and deductions. The increases in fringe benefits for those with children and the cutting of the tax wedge have also been confirmed
.
5. Tuition fee bonus
University students belonging to families with an ISEE not exceeding 22,000 euros are exempt from paying the annual all-inclusive contribution. For those with an ISEE between 22,000 and 30,000 euros, there is a graduated partial exemption
.
6. Increases for state employees
In 2024, salaries are expected to increase for state employees with low incomes, thanks to the cutting of the tax wedge and the confirmation of the bonus of 100 euros and the 1.5% allowance against the dear life. The reform also provides for the merging of the first two personal income tax rates
.
7. Global minimum tax
The global minimum tax, or ‘global minimum tax’, will take effect from 2024. This measure imposes a minimum tax of 15% for companies that are part of multinational or national groups operating
in Italy.
8. Excerpt and installments of tax records
With the 2024 Collection Decree, the time for paying off debts with the IRS has been extended, allowing a maximum of 120 monthly installments. In addition, the files will be ‘excerpted’ if they are not collected within five years
.
9. Impatriate bonus
From 2024, employees or self-employed workers who return to Italy can benefit from a 50% tax reduction for a maximum of 5 years. This benefit applies to those who are highly qualified and have not resided in Italy in
the previous three tax years.
10. Concessional taxation for the return of companies
The “return to Italy bonus” provides for a 50% reduction in income taxes for companies that transfer productive activities to Italy from non-EU countries. This benefit is valid for the tax period of the transfer and for the next five years.
11. Company relief on recruitment
The “more you hire the less you pay” bonus is active in 2024 and encourages new hires, in particular for the most vulnerable categories. Relief is also provided for the recruitment of working mothers
.
12. Excise reductions
The Advance Decree converted into law introduced the possibility of reducing excise duties on energy products used as fuel or for civil heating, in response to increases in international oil prices.
13. VAT exemption for cosmetic surgery
Since 2024, VAT has been exempt for cosmetic surgery services aimed at the diagnosis, treatment of diseases or health problems, provided that the therapeutic purposes are documented.
14. Tax credit for freight transport
The 2024 Budget Law confirmed and enhanced the freight transport bonus, with a tax credit equal to 12% of the expenses incurred for the purchase of diesel used in vehicles of the euro 5 category or higher.
15. Extension of VAT concessions for sports associations
The Omnibus Decree 2024 extended VAT benefits for amateur sports associations, including clarifications on the VAT regime for winter sports courses.
16. Tax breaks for working on weekends
The 2024 Budget Law has made the ‘summer bonus’ structural, which provides tax reductions for those who work on weekends or holidays, with particular attention to the tourism sector.
17. Discounts on registration tax
The Consolidated Law of the Registration Tax introduces discounts for business transfers, with different rates applied based on the type of goods and specific conditions.
18. Free tax shopping
Since 2024, non-EU citizens who visit Italy can request a refund of VAT for purchases intended for personal consumption, with the spending limit reduced to 70 euros.
19. News on inheritance and gift taxes
The Consolidated Text on inheritances and donations has introduced new rules for transfers from trusts and freedom of use, with rates and deductibles depending on the value of the assets and the kinship relationship.
