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Introduction Of Tax Credits For Newly Employed Personnel

14 Jun 2011

A recent decree has been introduced in certain regions of the south of Italy, which allows companies to apply for a tax credit when employing new personnel Taxand Italy provides a brief overview of the law.

The tax credit amounts to 50% of the "wage costs" borne in the 12 months following the employment for each newly employed individual. Wage costs are those defined by the EU regulations (which include (a) the gross wage, before tax, (b) social security charges, (c) child care and parental care costs). Under certain circumstances, the new law allows the tax credit to be calculated on wage costs borne for a period of 24 months following the employment.

Taxand's Take

The new regulatory and tax provisions may have an impact on envisaged investment projects on certain Italian regions.

Your Taxand contacts for further queries are:
Guido Arie Petraroli
T. +39 02 7260591

Alberto Alfredo Ferrario
T. +39 02 7260591

Taxand's Take Author