Form 770/2025 – Severance pay revaluation index – Stressful working environment – Black list – ISEE

Form 770/2025

By order No. 75896 of February 24^th 2025, the Italian Revenue Agency approved the 770/2025 form, relating to the 2024 tax year, with the instructions for its compilation, concerning the data on payments, credits and offsets, as well as the technical specifications for the telematic transmission of the form.

Severance pay: revaluation index for January 2025

ISTAT, in a note dated 21 February 2025, announced that the coefficient for determining the severance pay accrued as at December 31^st 2024 will be 0,561772.

The consumer price index for blue- and white-collar households for January was 120.9.

Stressful working environment

By Order No. 123 of January 4^th 2025, the Supreme Court, Labour Section, held that, on the subject of liability of the employer for damage to an employee’s health, there is a breach of Article 2087 of the Civil Code if the employer permits, even negligently, the maintenance of a stressful environment that is a source of damage to the health of workers, or engages in conduct, even if not unlawful in itself, but such as to induce discomfort or stress, which occurs in isolation or is connected to other non-compliant conduct, contributing to exacerbate the effects and severity of the injury to personality and health in the strict sense of the term.

Conflicting personal relationships within an office require the employer to take appropriate measures to restore the serenity necessary for the proper performance of work, including recourse to disciplinary power.

Black list: updated list of non-cooperative countries

The Council of the European Union has updated the list of non-cooperative countries and territories for tax purposes, i.e. those jurisdictions whose tax systems are not considered to comply with EU principles of good tax governance.

Currently, the list of non-cooperating countries includes the following jurisdictions: American Samoa, Anguilla, Fiji, Guam, Palau, Panama, Russia, Samoa, Trinidad and Tobago, US Virgin Islands and Vanuatu.

In addition,Annex II was approved, listing the jurisdictions subject to the EU screening process. These include: Antigua and Barbuda, Belize, Brunei, Eswatini, British Virgin Islands, Seychelles, Turkey and Vietnam.

It should be noted that Costa Rica and Curaçao have fulfilled their commitments by amending tax regimes considered harmful. Brunei, on the other hand, made a commitment to review or abolish the exemption of foreign source income by the end of the year.

Transactions with Blacklisted Countries

Transactions with persons domiciled in EU blacklisted countries are subject to the restrictions provided for in Article 110, paragraphs 9-bis to 9-quinquies, of the TUIR, as amended by Law 197/2022. In particular:

• Limited deductibility: costs and other negative components arising from transactions with suppliers located in non-cooperative jurisdictions are deductible only up to the normal value;
• Exclusion of restrictions if
  – the Italian company proves to the tax authorities that the transactions were actually carried out and respond to a real economic interest;
  – the transactions concern companies controlled by the Italian company, to which the CFC (Controlled Foreign Companies) regime of Article 167 of the TUIR applies, with income imputed for transparency to the Italian shareholder.

Finally, even respecting the normal value limit, income components arising from transactions with blacklisted suppliers must be reported separately in the tax return. In case of omission, an administrative sanction of 10 per cent of the expenses is applicable, with a minimum of €500 and a maximum of €50,000 (Article 8, paragraph 3-bis, Legislative Decree 471/1997).

ISEE: changes to calculation methods

The decree amends Prime Ministerial Decree 159 of December 5^th 2013, which governs the regulations and methods for determining the Indicator of Equivalent Economic Situation (ISEE). This tool assesses the economic condition of households in Italy, taking into account income, assets, number of members and type of household, in order to allow access to subsidised social benefits.

As from March 5^th 2025, new criteria for calculating ISEE will be introduced, with changes to the way it is determined and the fields of application. The main changes include:

• Rent deduction: for families living in rented accommodation, the annual rent will be deducted up to a maximum of EUR 7,000, with an increase of EUR 500 for each cohabiting child over the second;
• Exclusion of government bonds: the value of government bonds and Treasury Bonds (BTP) up to EUR 50,000 will no longer be taken into account when calculating ISEE;
• Increased protection for households with disabled people: for households with disabled or non-self-sufficient persons, welfare, social security and allowances paid by public administrations in relation to the disability condition will be excluded from income.