Corporate Welfare: New Developments On Education And Family Care Support

CORPORATE WELFARE: NEW DEVELOPMENTS ON EDUCATION AND FAMILY CARE SUPPORT

Through Responses No. 159 and No. 163 issued last August, the Italian Tax Authority provided important clarifications on the application of the tax regime set out under Article 51, paragraph 2, letters (f-bis) and (f-ter)of the Italian Income Tax Code (TUIR) with respect to expenses reimbursed under corporate welfare plans.

Through Response No. 159, the Tax Authority confirmed that education expenses incurred for an employee’s children may be reimbursed by the employer even where the payment was made by the employee’s spouse. What matters, therefore, is the fact that the beneficiary can be clearly identified and the nature of the expense incurred, regardless of the person who actually paid for it.