If you’re an employee travelling for business purposes in Italy, we’ve got some good news. If you’re using your own or a private vehicle, you can claim a tax-free reimbursement back from your employer to cover the costs of your trip.You might be based in Italy, or maybe you’re visiting on a corporate trip to Europe. Either way, this article will give you a full rundown of the Italian system of travelling allowance payments, from fuel rates to type of vehicle permitted, to taxable income thresholds.Ready to leave? Andiamo!
How does travelling allowance work in Italy?
Let’s make sure we’ve got the basics straight. Mileage allowance is the amount employees can claim to cover the cost of fuel, insurance, road tax and the wear and tear of their own car. This subsidy only applies to business trips, i.e. not personal trips during work hours.
What are the mileage allowance rates in Italy in 2024?
The Italian system is very specific. Unlike other systems in Europe, it does not use a flat rate to determine mileage reimbursements.The Italian mileage allowance rates depend on two key factors:In Italy, the mileage allowance rates for 2024 are calculated using the ACI tables. There are several hundred rates, varying according to vehicle specifics (e.g. brand and fuel type). The rates are published annually in the
- Municipality: reimbursements for business journeys within the municipality of the office are considered part of the employee’s taxable income. If the business trip takes place outside the workplace’s municipality, the reimbursement is not part of the taxable income—up to a certain amount.
- Make of car: includingengine category, the car manufacturer, the type of fuel and engine capacity
Gazzetta Ufficiale
.The employer can then decide to pay a higher rate per kilometre, but the portion exceeding the defined rates will be considered part of the employee’s taxable income.?)
See how to save your company time and money on business travel management.
Personal use of company car in Italy
In Italy, there is also a company car benefit, applicable to vehicles provided by the employer to the employee for private and business use—but is ultimately the company’s property. Before 2020, 30% of the maximum annual 15,000km mileage cost was a taxable benefit, to account for estimated personal use.However, since the Italian Budget Law of 2020, the taxable travelling amount depends on the emission rate of the car, ranging from 25-50%. In other words, there are different percentages of the tax benefit depending on the level of carbon dioxide (CO2) emissions:
- 25% if the amount of CO2 emitted is less than 60g/km
- 30% if the amount of CO2 emitted is more than 60g/km but less than 160g/km
- 50% if the amount of CO2 emitted is more than 160g/km but less than 190g/km
- 60% if the amount of CO2 emitted exceeds 190g/km
Domestic business trip
International business trip
€46,48 per day
€77,46 per day
The above rates apply only if the employee receives no meal/accommodation allowance.If, on the other hand, the employee’s meals or accommodation are specifically subsidised by the employer (including cases where the employee eats for free in the hotel), then the tax-free allowance decreases:
Finally, if the employee receives no travel allowance at all, any expenses supported by receipts that are related to food, travel and accommodation are not taxable in Italy.
Meals or accommodation
Deduction of one-third of the total
Meals and accommodation
Deduction of two-thirds of the total
What is not included in the commuting allowance?
In Italy, certain conditions have to be met before you can claim your mileage allowance. You cannot apply for a free commuting allowance for your business trip if:
- The trip takes place within the same municipality as your company office
- You are carrying out personal errands, for example dropping in at the post office or collecting a friend from the airport
- You are completing tasks not directly related to your job role, as per your contract, for example collecting coffee for your manager
How can I file a mileage allowance claim in Italy?
Filing a mileage allowance claim in Italy can be complicated, given the variety of mileage rates. Often, the claimant (i.e. employee) is tasked with working out the rate applicable to them, based on the information published in the
Gazzetta Ufficiale
. This involves ensuring that the rates are compliant with both government and company standards. Employees should speak to their employers for details on how to handle business mileage reimbursements at their organisation.Streamline travel expenses with TravelPerk's business travel management platform
There we have it: Italy’s intricate rules for mileage reimbursements. With so many numbers flying around, it’s important to know exactly where your employees are. One of the most efficient ways of keeping an eye on employee travel arrangements and mileage rates is to integrate an expense management solution with a dedicated business travel management platform—like TravelPerk.Business travel can seem like an admin-heavy task, and it can be, but it doesn’t have to be. TravelPerk offers an impressive selection of
third-party integrations
, including expense management tools from Pleo to Expensify, TravelPerk can make your business travel management a total breeze.Mileage allowance for Italy FAQs
Do all countries offer mileage reimbursement to travelling employees?
Are mileage reimbursements in Italy the same as in the UK?
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