Prepared by Marzio Scaglioni and Antonio Giardina
The Decree-law no. 113/2024 (also known as the “Decreto Omnibus”) through article 2-bis, introduces a net bonus of €100 for employed workers in 2024 whose total income does not exceed €28,000 and who meet certain family conditions. This bonus, commonly known as “Christmas bonus,” will be included in the thirteenth salary and will be given to approximately one million low-income taxpayers, identified among employed workers with an income below €28,000 (to be understood as employment taxable income), with a spouse and at least one dependent child for tax purposes.
Article 2-bis of the Decree states that, pending the introduction of a subsequent replacement tax regime provided for by a broader tax system reform, a one-time €100 net allowance, proportional to the period of work, will be provided to employed workers who are in specific economic and family conditions, identified based on specific criteria.
Recently, the Italian Tax Authority issued Circular No. 19/E of October 10, 2024 (hereinafter referred to as the “Circular”), providing operational instructions to ensure uniform application of the new provisions introduced. The Circular first clarifies that workers assimilated to employees, such as coordinated and continuous collaborators, are excluded from the bonus. It then clarifies who is eligible for the bonus up to €100 and the methods of payment, which will be included in the payslip together with the thirteenth salary, usually paid in December.
The Circular also provides administrative instructions for employing Companies responsible for paying the bonus: the amount does not contribute to the calculation of the overall income for personal income tax purposes and does not vary based on the type of contract (e.g., fixed-term or permanent) or working hours (such as part-time). The bonus amount will also be proportionate to the actual days worked, and this calculation criterion will apply to employees who have ceased or been hired during 2024 and who can benefit from the bonus amount.
To access the bonus, workers must meet specific requirements, including:
- Having a total income in 2024 not exceeding €28,000 (to be understood as employment taxable income).
- Having both a spouse and at least one dependent child for tax purposes.
- Having “fiscal capacity,” meaning a gross tax on employment income higher than the deduction for employment income (pursuant Article 13, paragraph 1, of Presidential Decree no. 917/1986).
Regarding the limit of €28,000, the Circular clarifies that the income from the main residence and its accessories are not included in the calculation. On the other hand, some examples of income included in the calculation are income from the flat-rate tax, substitute tax for self-employed workers, tips subject to substitute tax, the “ACE tax” advantage quota, and the tax-exempt quotas for repatriated workers applying the special tax regime.
The payment of this allowance is not automatic; rather, the worker entitled to it must submit a specific request, in which they certify (through self-certification) meeting the income and family requirements to benefit from the allowance, specifying the tax codes of the spouse and dependent children (or only the children in the case of a single-parent household).
The Circular also specifies that workers who have had multiple employment relationships with different employers must submit the bonus request to the last employer who pays the thirteenth salary. In the case of multiple part-time jobs, it is up to the worker to decide which employer to approach and coordinate the exchange of information in due time for the December processing.
The amounts paid by the employer are recovered as a tax credit to be used for offsetting in F24 forms, starting from the day after the payment of the bonus in the payslip. The Italian Tax Authority will provide a specific tax code to be used for offsetting. Payroll management software will be updated accordingly.
The Circular devotes ample space to different situations concerning the composition of the household. Employees with a household composed of a spouse and at least one dependent child can benefit from the bonus. Furthermore, the allowance can also be granted to single-parent households, in which:
- the other parent has passed away;
- the other parent did not recognize the child born out of wedlock;
- the child has been adopted by a single parent (recipient of the bonus) or has been entrusted or affiliated with a single parent (recipient of the bonus).
In these situations, characterized by the presence of a single parent, the cohabitation more uxorio does not exclude entitlement to the bonus. However, if the dependent child has two cohabiting parents who have recognized them, the bonus does not apply, as defined in the Circular itself.
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