THE VACCINE IN THE COMPANY IS NOT TAXABLE
Reimbursement of expenses incurred by the worker for vaccination does not constitute compensation (good or service) in kind and, therefore, the same will not fall within the deductible of 258.23 euros.
The similarity of Coronavirus symptoms with influenza syndrome and the consideration that, even within the company, it may be appropriate to make “differential diagnoses” to avoid Covid outbreaks prompts many employers to make a free influenza vaccination service available to their employees. The value of the vaccination service does not constitute income for employees. In fact, although such initiatives may bring an indirect benefit to employees, they do not enrich workers and are made available to them also and above all in the “prevailing” corporate interest (Circular no. 37/E of 20 December 2013).
The non-taxability of the vaccination service offered to all employees, on company premises or at approved centres, is provided for by Article 51, paragraph 2, letter f) of the Tuir, according to which “the use of the works and services recognised by the employer voluntarily or in accordance with provisions of contract or agreement or company regulations is excluded from income (and, therefore, is not subject to taxes and contributions), offered to the generality of employees or to categories of employees and family members indicated in article 12 for the purposes referred to in paragraph 1 of article 100”, i.e. for the purposes of education, education, social assistance, health care and worship.
In addition, the vaccination service provided to family members (Article 433 of the Civil Code) is also excluded from taxation, regardless of the condition of dependent family member, cohabitation with the employee and the receipt of legal alimony allowances.
If, on the other hand, the employer reimburses only the cost of flu vaccination directly incurred by employees, the tax “management” is more complex. As a matter of fact, following the application of the principle of all-inclusiveness of the employee’s income, according to which reimbursements received by the employee on account of his status as an employee also constitute income, in the absence of specific exclusion rules, the reimbursement of health expenses constitutes income.
In the event that the reimbursement of health expenses is made in accordance with collective agreements or company agreements and regulations, since the expenses reimbursed are also considered to be borne by the taxpayer if the reimbursement has, in any case, contributed to forming the employee’s income, the employee is granted the right to the deduction referred to in article 15, paragraph c) of the Tuir at the end of the year or at the end of the relationship (circular 326 of 23 December 1997 and resolution 285 of 19 July 2019).
Reimbursement of expenses incurred by the worker for vaccination does not constitute compensation (good or service) in kind and, therefore, the same will not fall within the deductible of 258.23 euros (doubled for 2020 to 516.46 euros) pursuant to article 51, paragraph 3 of the Tuir. However, in order to use the franchise, the employer could consider making available to all employees vouchers that can be activated by more than one health care professional who give the right to the flu vaccination service.
The costs incurred by the employer to make the vaccination service available to all employees are fully deductible (article 95 of the Tuir) in all cases where such an initiative is the result of an obligation to negotiate, while they will only be deductible up to a limit of 5 per thousand (article 100, paragraph 1, Tuir) when the initiative is taken voluntarily. Finally, the reimbursement of the cost of vaccination incurred by the employee will also be fully deductible under Article 95.
LDP remains available for further clarification.