Traveling allowances’ fiscal regime

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The recent resolution 92/E of 31 October 2015 has provided new clarifications about traveling allowances’ fiscal regime.

The Italian fiscal Agency has first of all pointed out that for travels among the municipal territory the taxation depens on the traveling allowance type (mixed, analytic, forfait) and it is not possible to use any other calculation system for those money amounts that flow into income formation, in addition to those already provided by the law (art 51, c 5, T.U.I.R.).

The Agency has furthermore establihed that: traveling allowances for travels outside the municipal territory contribute to income formation if proven by a proper documentation. Traveling allowances for travels outside the municipal territory are tax free: howevere, in disbursement fase, the mileage must be calculated following the A.C.I. charts (Automobile Club Italia) which include type of car, distances and kilometric costs.

In the present case the Agency has identified two different hypothesis that shall be treated in a different way:

  • In case the travel made by the employee from his residence to the place of the business trip may result shorter than the the same travel from his usual workplace, following the A.C.I. charts, the employee will be given a kilometric reimbursement of a minor amount but it will be tax-free.
  • In case the travel made by the employee from his residence to the place of the business trip may may result greater than the same travel from his usual workplace, following the A.C.I. charts, the employee will be given a kilometric reimbursement of a higher amount. The difference between the thoretical A.C.I. mileage and the one effectively given, will flow into income formation and i twill be taxable to all intents and purposes.