Pursuant to Article 81 of the Italian Constitution, the government in force is required to enact annually a law, commonly called budget law. It is a budget-type accounting document, in which the government informs Parliament of the public expenditure and revenue expected for the following year in accordance with the laws in force (it differs from the final statement, which is instead an accounting document listing the revenue and expenditure that have been realised in the financial year to which the budget refers).

Therefore, close to the end of each year, in Italy we all take time to study the latest news from the government. The Budget Law 2025 - i.e. Law No. 207/2024, which was published in the Official Gazette on 31 December 2024 and entered into force on 01 January 2025 - introduced significant regulatory changes that will certainly affect every company and worker during the year that has just begun.

Following is a review of the most discussed elements.

Car fringe benefit for both private and company use

Among the fringe benefits most frequently awarded to employees, cars certainly stand out. Current provisions distinguish among: 

• car given for business use only;
• car given for private use only;
• car given for both private and business use.