Deduction of up to 130% for those who hire, here are the rules

Businesses and professionals who the number of permanent employees increases,for the 2024 tax year they will be eligible for a maxi tax deduction of 120%a discount that goes up to 130% in the event that the hiring concerns categories of workers deserving of greater protection. This is provided for by the implementing decree of the Irpef reform signed on 25 June by the Minister of Economy and Finance Giancarlo Giorgetti in agreement with the Minister of Labor and Social Policies Marina Elvira Calderone. Holders of business income and practitioners of arts and professions will be able to benefit, for the fiscal year 2024, from a 120% increase in the cost of labor as a deduction in the event of an increase in the number of employees with permanent contracts compared to the previous year of tax.

The deductible portion of the labor cost rises to 130% if the new hires, with permanent employment contracts, concern specific categories of workers deserving of greater protection: disabled people, mothers with at least two children, former recipients of citizenship income, women victims of violence and young people under 30 eligible for employment incentives. The need for a company to make new permanent hires, as specified in the explanatory report of the provision, leads to the assumption that the company is in ordinary operating conditions; that’s why I am companies in ordinary liquidation are excluded from the relief,those who are in a state of judicial liquidation (bankruptcy) or who have resorted to other corporate crisis resolution institutions of a liquidation nature. The text also clarifies that the tax benefit is only available if, at the end of the facilitated tax period, the increase in the number of permanent employees is accompanied by the growth of their overall number. Otherwise it will not be possible to benefit from the benefit.

Furthermore, if during the subsidized period there have been transfers of employees following mergers, splits, contributions, assignments, rentals of companies, the same employees are not recognized as new hires. The choice derives from the idea that a transferred employee for whom there has been no termination of the previous employment relationship cannot be treated as a new hire. The following are to be considered for the purposes of calculating the deduction: wages and salaries (including all fixed and variable elements provided for by contract) and social contributions payable by the employee, as well as allowances; the charges to be paid to the various social security and insurance bodies; provisions for any supplementary pension funds other than severance pay and all other costs relating, directly or indirectly, to employee personnel. However, charges recorded in other items of the income statement are excluded, such as those relating to meal vouchers, expenses for professional development of employees, costs for food and accommodation services for employees on business trips, as well as those relating to company cars.