Summary
Part-time and overtime work
Definition and Applicability:
Overtime is considered to be work performed beyond the normal working hours, set at 40 hours per week or the shorter hours established by collective agreements. This type of work is applicable only to vertical and mixed part-time contracts, i.e., those in which work activity is concentrated on certain days or periods of the week/month and must be limited and justified by actual needs.
Management and Remuneration:
Overtime hours must be recorded separately in the Single Labor Book: remuneration for such hours is increased as determined by collective bargaining agreements.
As an alternative to or in addition to the increased pay, collective agreements may provide for compensatory time off.
Limits and Agreements:
Average working time, calculated over a maximum period of 4 months (extendable to 1 year by collective agreements), may not exceed 48 hours per week, including overtime.
Overtime work requires agreement between employer and employee.
The maximum limit of overtime hours is 250 hours per year, unless otherwise provided by collective agreements.
Employee bonuses: taxation during vesting period
The tax authorities clarified that bonuses of employees who worked abroad during the vesting period are taxed according to their tax residence during that period. Specifically:
- if the employee was resident abroad, the bonus is taxed abroad, even if the employee then returns to Italy;
- income for work done in Italy is taxed in Italy, pro rata temporis;
- to avoid double taxation, conventions entered into between Italy and other countries are used.
2025 UPDATES
New ATECO classification
In Circular No. 71 published on 31/3/2025, INPS provided operational instructions to employers, principals and professionals enrolled in the Institute’s Separate Account on the classification of economic activities following the adoption from, April 1, 2025, of the new ATECO 2025 classification (DGTAX-FLASH 9-2025) prepared by ISTAT.
News electronic invoicing
Also effective April 1, 2025, are the new Technical Specifications 1.9 for electronic invoicing.
New specs include:
- New document type TD29 (DGTAX-FLASH 12-2025) for reporting omitted or irregular billings to the Internal Revenue Service;
- Change in the description of document type TD20.
- Cross-border VAT Exemption Scheme RF20: New cross-border VAT Exemption Scheme (EU Directive 2020/285);
- Updated diesel/fuel invoice value codes: in accordance with the new coding provided by ADM;
- Elimination of 400 euro simplified invoice limit: for suppliers/suppliers under flat-rate regime (art. 1, c. 54-89, L. 190/2014) or under cross-border VAT exemption regime (EU Directive 2020/285).
Catastrophic risk insurance obligation.
Deadlines for underwriting catastrophe policies (DGTAX Newsletter 06-2025), which are mandatory for enterprises, have been differentiated according to company size:
- Medium-sized enterprises: must underwrite policies by October 1, 2025.
- Small and micro enterprises: must underwrite policies by January 1, 2026.
- Large enterprises: must underwrite policies by March 31, 2025.
However, there is a 90-day grace period for large enterprises, during which any failure to comply with the insurance obligation will have no consequences in the allocation of public grants, subsidies or facilities, including in the case of calamitous events.