CHRISTMAS BONUS 2024: THE TAX AUTHORITY CLARIFIES THE REQUIREMENTS
The Tax Authority, with circular no. 19/E of October 10, 2024, clarified that the Christmas Bonus 2024 is available to employees who have:
- an annual total income not exceeding 28,000 euros;
- both a spouse and (at least) one dependent child; and
- "tax capacity," meaning a gross tax on employment income exceeding the amount of the employee tax deduction.
Following the expansion of the beneficiary base, the Tax Authority, with a new circular (the one no. 22/E), revisited the topic, clarifying the requirements and methods to obtain it.
In particular, while maintaining the other conditions (income limit and tax capacity), employers can grant the bonus to workers with at least one dependent child regardless of whether they are married, separated, divorced, single parents, or cohabiting (pursuant to Law no. 76 of 2016). However, the rule stipulates that the bonus is not available to an employee whose spouse, not legally and effectively separated, or cohabiting partner is a beneficiary of the same allowance.
Regarding the "family requirement," it is no longer necessary for both the spouse and a child to be dependent; it is now satisfied with the mere presence of a dependent child.
The other two requirements remain unchanged: having a total income not exceeding 28,000 euros in 2024 and having a gross tax amount exceeding the employee tax deduction.
