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Italy Provides Guidance on Increased Deduction for New Permanent Hires

27 January 2025

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Approved Changes

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Italy

The Italian Revenue Agency has announced the release of Circular No. 1/2025, which provides guidance on the tax benefit for companies and professionals that hire new employees on a permanent basis. The tax benefit consists of a 20% increase in the cost allowed as a reduction for the increase in staff, which rises to 30% for employees deserving of greater protection, such as people with disabilities, women with at least two children (minors), women that have been victims of violence, and young people eligible for youth employment incentives. As extended by the 2025 Budget Law, the tax benefit applies for...