<\/strong>Article 51, paragraph 5, of TUIR regulates the tax treatment of amounts paid to employees for business travel or missions, intended as temporary movements away from the employee\u2019s usual workplace. The tax regime varies depending on whether the activity is carried out within or outside the municipality where the employee’s workplace is located.<\/p>\n\n\n\n
For travel outside the municipality, the legislation provides three alternative reimbursement systems\u2014flat-rate, mixed, and analytical\u2014each with specific rules on income exemption for allowances and reimbursements relating to meals, accommodation, travel, and transportation.<\/p>\n\n\n\n
Flat-rate system<\/strong> Travel Outside the Municipality<\/strong><\/p>\n\n\n\n Mixed system<\/strong> Analytical system<\/strong> Travel Within the Municipality<\/strong> The IRPEF delegated decree simplified this rule by replacing the reference to \u201cdocuments issued by the carrier\u201d with the broader wording \u201cproven and documented travel and transportation expenses\u201d. The Traceability Requirement<\/strong> To qualify for exemption, employees must pay these expenses using traceable instruments, such as bank transfers, debit or credit cards, PagoPA, or other methods listed in Article 23 of Legislative Decree 241\/1997, which allow identification of both payer and payee.<\/p>\n\n\n\n Traceability applies to:<\/p>\n\n\n\n Exclusions From the Traceability Requirement<\/strong> These remain non-taxable even if paid in cash.<\/p>\n\n\n\n Documentation Allowed as Proof of Traceable Payment<\/strong> Payments made through electronic money institutions (e.g., apps linked to IBAN accounts) are also considered traceable if supported by appropriate documentation.<\/p>\n\n\n\n Domestic vs Foreign Travel: Clarification Introduced During 2025<\/strong> <\/p>\n","protected":false},"excerpt":{"rendered":" With Circular No. 15\/E of 22 December 2025, the Italian Revenue Agency, with the aim of ensuring uniform application, provided its local offices with operational instructions regarding the changes introduced by Legislative Decree No. 192 of 13 December 2024 (\u201cIRPEF delegated decree\u201d) and by Law No. 207 of 30 December 2024 (\u201c2025 Budget Law\u201d) concerning […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[26],"tags":[484,555],"class_list":["post-9732","post","type-post","status-publish","format-standard","hentry","category-observatory","tag-rimborsi-en","tag-trasferta-en"],"acf":[],"yoast_head":"\n
This system allows a daily allowance\u2014within predefined statutory limits\u2014to be exempt from income tax, excluding travel and transportation expenses. Where a travel allowance is paid, analytical reimbursements of travel and transportation expenses (including mileage reimbursements) are also exempt, provided they are supported by appropriate documentation.<\/p>\n\n\n\n
Unlike the flat-rate method, this system combines allowances with analytical reimbursements for meals and\/or lodging, reducing the daily allowance exemption limit by two-thirds based on the reimbursed analytical expenses. Reimbursements for travel and transportation expenses remain exempt if properly documented, while any other additional expenses (i.e., other than meals, lodging, travel, and transportation) are fully taxable.<\/p>\n\n\n\n
This regime allows full exclusion from income of reimbursements for meals, lodging, travel, and transportation\u2014including mileage\u2014provided they are duly documented. \u201cAccessory expenses\u201d (e.g., laundry, telephone, tips) may also be non-taxable even if not documented, as long as they are itemized by the employee. These expenses are exempt up to \u20ac15.49 per day for travel within Italy and \u20ac25.82 per day for foreign travel; any amount exceeding these limits, even if documented, is taxable. The Revenue Agency clarifies that the employer must choose a single reimbursement system for the entire period of the business trip. It is not permissible to apply different systems for different days of the same trip.<\/p>\n\n\n\n
Until 30 December 2024, the legislation was particularly strict: all allowances and reimbursements were taxable, except for transportation expenses proven by \u201cdocuments issued by the carrier\u201d. As a result, reimbursements for private car use\u2014including mileage allowances\u2014were always taxable.<\/p>\n\n\n\n
Thus, from 1 January 2025, reimbursements of travel and transportation expenses for travel within the municipality do not contribute to taxable income if suitably proven and documented, regardless of the document issuer. This means that mileage reimbursements based on ACI tables, tolls, and parking fees\u2014when properly documented\u2014are also exempt.<\/p>\n\n\n\n![\"\"](\"https:\/\/www.hrcapital.it\/wp-content\/uploads\/2025\/11\/pexels-mikhail-nilov-6964138-1024x683.jpg\")
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Article 1, paragraph 81, of the 2025 Budget Law amends the TUIR by introducing, as of 1 January 2025, a new requirement for tax and social security exemption: business travel reimbursements relating to meals, lodging, travel, and transportation provided by non\u2011scheduled public services (such as taxis and NCC\u2014chauffeur services) must be paid using traceable methods<\/strong>.<\/p>\n\n\n\n\n
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Traceability is not required<\/strong> for the following reimbursements, regardless of destination:<\/p>\n\n\n\n\n
The circular lists acceptable proof of traceability, including:<\/p>\n\n\n\n\n
The circular also recalls Decree-Law No. 84 of 17 June 2025, converted by Law No. 108 of 30 July 2025, which limited the traceability requirement to domestic travel only<\/strong>. As a result, foreign business trips remain exempt even if paid in cash<\/strong>, a change needed to address practical difficulties in countries where electronic payment systems are not widespread.<\/p>\n\n\n\n