PUBLISHED BY Arlati Ghislandi
Proximity agreements: fiscal treatment of the indemnity paid to employees

With resolution no. 16/E of February 15, 2018, Agenzia delle Entrati provided clarifications on the correct application of taxes on sums paid to employees due to the application of collective proximity agreements (art. 8, Law Decree no. 138/2011).

Specifically, it is confirmed that sums paid as indemnity, in execution of said agreements (aimed at the management of company crisis situations), are considered income as per art. 6, c. 2 of TUIR.

This because proximity agreements, signed for specific companies or locally, can – for the pursuit of certain goals (conservation of employment, increase in productivity and salary, etc.) amend law or collective bargaining agreements, within the limits of certain specific areas. Tax regulations cannot be amended by these agreements.