TAX AUTHORITY: CLARIFICATIONS ON THE TAXATION OF OPTIONAL EXTRAS IN COMPANY VEHICLES FOR MIXED USE
With response no. 233 of 9 September 2025, the Italian Tax Authority clarified the correct application of tax deductions from salaries for optional accessories that employees add to company cars assigned to them for mixed use and which are not included in the valuation determined in the ACI tables.
In this regard, the Authority has stated that these sums do not reduce the flat-rate value of the fringe benefit subject to taxation pursuant to Article 51, paragraph 4, letter a) of Presidential Decree of 22 December 1986, No. 917 (better known as the Consolidated Income Tax Law – TUIR).
This is because such a rule, providing that the value of mixed-use vehicles is subject to taxation “net of any sums withheld from the employee”, must be understood as referring not to all sums withheld from or paid by the employee for various reasons in relation to the vehicle, but only to those that may be requested by the employer for personal use of the vehicle, determined on the basis of the ACI tables.
As a result, optional extras are not included in the calculation of this value, therefore any sums paid by the employee for their purchase must be deducted from the net amount paid in the pay slip.
