Effective from 18 September 2026, Legislative Decree No. 148/2026 (the so-called “Omnibus Correction”) introduces significant amendments to the tax treatment of company cars provided to employees for mixed business and private use (uso promiscuo). Authored by Marzio Scaglioni and Silvia Capobianco, the Newsalert explains that the decree modifies the calculation of the taxable fringe benefit (valore normale) by adjusting the percentage coefficients applied to the vehicle’s cost based on CO2 emission bands. The new rules aim to align the fringe benefit valuation more closely with environmental performance, increasing the taxable base for higher-emission vehicles while offering favorable rates for electric and plug-in hybrid models. Additionally, the decree clarifies the documentation requirements for proving business use, including mandatory logbooks or approved telematic systems. These changes affect both corporate income tax (IRES) deductions for the employer and personal income tax (IRPEF) withholding for the employee. Companies with existing fleet policies must urgently review their car allocation strategies, update payroll systems for the revised benefit computation, and communicate changes to affected employees before the next payroll cycle.
Key Takeaways
- Emission-Based Fringe Benefit Valuation: The taxable benefit percentage now varies more steeply across CO2 bands, penalizing high-emission vehicles and incentivizing green fleet transitions.
- Stricter Business Use Substantiation: Employers must implement compliant tracking methods (digital logbooks or certified telematics) to defend the business-use percentage during audits.
- Immediate Payroll and Policy Impact: The changes apply retroactively to the 2026 tax year, requiring swift updates to payroll calculations, fleet procurement plans, and employee communications to avoid compliance gaps.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement