Budget Law 2024: possible Changes for Workers

On the 16^th of October, the Council of Ministers approved the Draft Budget Law for 2024. Among the main updates is the confirmation that also for 2024, the reduction in the tax wedge on the portion borne by workers, amounting to 6 or 7 percentage points based on certain income thresholds. 

There should also be confirmation of the revision of the exemption limit for fringe benefits, at the rate of €2000 for workers with dependent children for tax purposes, and €1000 for all other workers. This would result in a decrease in the €3000 exemption provided for 2023 for workers with dependent children and, at the same time, an increase in the threshold for all other workers for whom the ordinary exemption of €258.23 has been applied until this year. 

Significant changes could also concern the “tax regime for repatriates”: with the access rules to the benefit possibly being revised in a restrictive sense, guaranteeing that the possibility of benefiting from the advantage is only applicable to workers who have moved back to Italy after at least 3 years abroad – not 2 as before – and reducing the tax relief rate to 50% from the current 70%. The duration of the relief would also only be guaranteed for 5 years instead of the current 10, and there could also be a limit on eligible income, set at €600000. 

Finally, it is necessary to point out that all these and other updates must be confirmed by the actual 2024 Budget Law, which will be released by the 31^st of December this year.