The Revenue Agency has provided instructions to employers who intend to pay their employees with physically dependent children sums or reimbursements as benefits. As can be seen from circular 23/E of 1 August, which implements the measure introduced by the Labor decree for 2023, this is an exemption limit of up to 3 thousand euros. It is also up to those who have only one dependent child and are not divided between the two parents, but both can take advantage of it (provided they are employed in companies and the employer decides to provide the aid) for a total maximum of 6 thousand euros .
How does it work
The benefit can be applied to taxes and contributions, including – only for the category – also the sums paid or reimbursed to them by the employers for the payment of domestic utilities for the integrated water service, electricity and natural gas. The 3 thousand euros also include those benefits which, by choice of the worker, have been granted, in whole or in part, in place of the tax-exempt performance bonuses. If the sum exceeds the limit, the payment of taxes is not envisaged only on the excess amount but on the entire amount. The indemnity can be combined with the 200 euro exemption for petrol vouchers. Finally, for all other employees who do not have dependent children, the “traditional” threshold of 258.23 euros remains in force.
Who is it up to
The Revenue also specifies that children with an income not exceeding 2,840.51 euros (gross of deductible charges) are considered dependents, this rises to 4,000 euros when the children are up to 24 years of age (as per article 12 of the Tuir). Being disbursed only for the current year, this income limit must be verified by 31 December. To access the subsidy, then, the employee must declare to his employer that he is entitled to it, indicating the tax code of the only child or children who are fiscally dependent. There is no predefined form of declaration, so it can be decided jointly between the employee and the employer. The benefit can also be obtained by parents who already receive the single and universal allowance, for both even if they agree to attribute the deduction for dependent children in full to the parent who, of the two, has the higher income.