The following allowances can be made against taxable employment income:
Mandatory social security contributions;
Contributions up to €5,164.57 to Italian qualified pension funds;
Reimbursement for travel and accommodation for business trips up to a maximum of €46.48 within Italy and €77.47 abroad;
Reimbursement for laundry, parking and telephone costs for work away from home;
Reimbursement for food provision by an employer to his or her employees;
Reimbursement for remuneration in kind (e.g. transport to and from the workplace provided by an employer);
Share purchase plans granted under certain conditions;
Maintenance payments to a spouse (from whom the taxpayer is legally separated or divorced);
Expenses related to property income.
A tax credit of up to 19 per cent of the expenses mentioned below is also granted:
Interest on a mortgage on a principal residence (prima casa) or land in Italy, provided that the loan is taken out in a European Union country, up to a maximum of €3,615.20;
Medical expenses in excess of €129.11 for general medical expenses and €129.11 for specialist medical treatment, for both the taxpayer and his dependants;
Funeral expenses up to a maximum of €1,549.37;
Tuition expenses at universities up to the equivalent cost of attendance at a state establishment;
Premiums which are for life insurance and health insurance, up to a total of €1,291.14;
Veterinary expenses exceeding €129.11 up to €387.34;
Contributions to non-profit entities up to €2,065.83.
Personal ‘allowances’ are in fact granted in the form of tax credits.
This article is an extract from Living and Working in Italy from Survival Books.
