The tax advantages and benefits described below are valid in Italy.

Condition for accessing social security and tax benefits:

  • Contributions must be paid by the employer and/or employee to entities or funds with only welfare purposes in accordance with company contracts, agreements or regulations

TAX AND CONTRIBUTIONS TREATMENT FOR THE COMPANY

REALIZATION MODE TAX TREATMENT
of the sums paid by the company		 CONTRIBUTIVE ONERI
on the sums paid by the company
Service Fund Cost decuctible from corporate income 10% for “Solidarity Contribution”
Insurance policy Cost decuctible from corporate income Ordinary contribution


TAX AND CONTRIBUTIONS TREATMENT FOR THE EMPLOYEE

REALIZATION MODE TAX TREATMENT
of the sums paid by the company		 CONTRIBUTIVE ONERI
on the sums paid by the company
Service fund Contributions paid by both the company and the employee for an annual limit of € 3,615.19 are not to be considered income for the employee. Exemption from ordinary contribution
Insurance policy The contributions paid by the company are considered taxable “REDDITO” (medical expenses are tax deductible 19% for the excess taxable amount of 129.11) Ordinary contribution


FISCAL TAX CONTRIBUTION FOR RETIREES

As indicated in the Italian Internal Revenue Service Resolution n. 293 dated 11 July 2008, and given the regulatory equivalent as indicatedin article 49 of the “TUIR Testo Unico Imposte sul Reddito“ ( Italian Tax Authority ) , all retirees may benefit from the deductability of welfare contributions paid to welfare funds or simliar entities provided the employer adopts the same terms, conditions and limits for retireees as provided for employees.

Therefore, to enable the retiree to deduct the limit of EURO 3,615.20 (as indicated in article 51 paragraph 2, letter a ) of the “TUIR “ Testo Unico Imposte sul Reddito (Italian Tax Authority), these contributions must be paid in accordance with the labor contract or company labor agreement as indicated in the revenue decree n. 50/E from 2002. In this manner, these amounts do not form part the retiree’s income, even if they are paid to his family members, including non tax dependents.