Performance bonuses or fringe benefits, which is more convenient for employees and companies?

The Italian tax legislation, contained in the Consolidated Law on Income Taxes (approved by Decree of the President of the Republic of 22 December 1986 number 917) establishes in article 51, paragraph 1, that employee income is made up of all sums and values ​​received in any capacity during the tax period, including in the form of donations, in relation to the relationship.

Among the exceptions to the principle of all-inclusiveness just described, include on the one hand the performance bonuses which, under certain conditions, benefit from a substitute tax for the Irpef and the related additional taxes, and, on the other hand, the goods and services (also called fringe benefits) that the employee receives according to the existing employment contract. For the latter, in particular, a tax relief regime operates within an amount ceiling, recently adjusted by the latest budget law.

Faced with the two facilitation measures mentioned, which should be chosen both in terms of greater benefits for employees and less expenditure of energy (in obligations and procedures) by the company? […]

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