Italy's Revenue Agency clarifies tax limits on productivity bonuses

The Italian Revenue Agency (Agenzia delle Entrate) has clarified the tax treatment of productivity bonuses through resolution 22/E. The agency confirmed that the 5,000 euro tax-exemption limit applies equally to both monetary bonuses and those converted into corporate welfare, such as shopping vouchers, school expense reimbursements, or supplementary healthcare services.

Under the 2026 Budget Law, the tax rate for these bonuses is set to decrease to 1% for the 2026 and 2027 periods. The resolution emphasizes that there are no distinct regimes for cash versus welfare conversion; a single unified limit of 5,000 euros applies to both forms of compensation.