An employer in Italy can reimburse employees for using a personal vehicle for business journeys. An example of a business journey is a client visit.
Reimbursements for business journeys within the municipality of the company’s office are considered part of the employee’s taxable income. In case the business journey is outside the municipality of the place of work, the reimbursement is not part of the taxable income up to a certain amount. These maximum amounts are calculated based on the ACI tables and depend on the specifics of the vehicle (such as brand and fuel type). The rates are published annually in the Gazzetta Ufficiale (2023 rates, 2022 rates).
The employer can decide to pay a higher rate per kilometre, however, the part exceeding the defined rates will be considered part of the employee’s taxable income.