Tax Exemption for Employee’s Children’s Sports Activities: Legal Interpretation and Agency Opinion

• The company has an agreement allowing employees to convert their performance bonus into goods and services from a Welfare Plan
• The company wants to reimburse expenses for sports activities of employees’ children, carried out in sports clubs, gyms, or schools
• The company asks if these expenses can be considered as part of tax-exempt corporate welfare initiatives
• The company argues that the constitutional recognition of the educational value of sports allows for the inclusion of these expenses in the tax exemption
• The tax agency clarifies that their opinion does not address the conditions for converting performance bonuses into benefits, but focuses on the tax exemption for sports activity expenses
• The tax agency explains that income from employment includes all sums received, regardless of the purpose, and that the tax exemption for sports activities does not apply to expenses for family members of employees.

Source: agenziaentrate.gov.it

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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