Hiring Incentive: Receive Up to 130% Deduction with These Rules

Businesses and professionals experiencing an increase in the number of permanent employees will be eligible for a maximum tax deduction of 120% for the 2024 tax year. This discount can go up to 130% if the hiring includes categories of workers deserving greater protection. The Irpef reform implementing decree, signed by the Minister of Economy and Finance Giancarlo Giorgetti and the Minister of Labor and Social Policies Marina Elvira Calderone, provides for these deductions. Business income holders and arts and professions practitioners can benefit from a 120% tax deduction for the fiscal year 2024 when there is an increase in the number of employees with permanent contracts compared to the previous year.

The deductible portion of the labor cost increases to 130% if the new hires involve specific categories of workers needing greater protection, such as disabled people, mothers with at least two children, former recipients of citizenship income, women victims of violence, and young people under 30 eligible for employment incentives. The relief excludes companies in ordinary liquidation, those in judicial liquidation (bankruptcy), or those resorting to other corporate crisis resolution institutions. The tax benefit is only available if, by the end of the facilitated period, there is an overall increase in the number of permanent employees.

Transfers of employees due to mergers, splits, or other corporate transactions during the subsidized period are not considered new hires. The deduction calculation includes wages, salaries, social contributions, allowances, benefits for social security, and other costs related to employee personnel. Charges like meal vouchers, expenses for professional development, and company car-related costs are excluded. The focus is on sustained employment growth for the benefit to apply.