Having an electric vehicle charging station for employees is potentially an important element of Corporate Welfare and can also be an economic advantage. What are the benefits of providing a wallbox or charging station? When would it be tax exempt and allow the company to make savings?

There are several advantages for companies in having a corporate electric car fleet, and not only in terms of the absence of fossil fuel. As we have previously discussed in our in-depth reviews on the issue, investing in electric mobility brings with it lower maintenance costs, greatly reduced fuel costs and less insurance costs due to the increased safety of these vehicles.

Looking at the overall picture, a 2022 study by GeoTab reports that 60% of European corporate fleets could save EUR 261 million in seven years. For each electric vehicle, the savings are around EUR 9,500 over the same period of time compared to a vehicle with an internal combustion engine.

Apart from the significant economic impact, it is obvious that offering employees company charging for their electric cars would be a valued gesture that would increase employee satisfaction and encourage the transition towards sustainable mobility. 

The focus should be on the aspects of this choice related to sustainability to understand whether corporate charging stations can be considered as tax-exempt welfare or risk becoming a cost borne entirely by the company.

Before replying to this question, it is important to remember what Corporate Welfare consists of: it is a series of (non-monetary) benefits and services that a company provides for employees to improve well-being, employment satisfaction and quality of life.

To be tax exempt, the benefits must not be included in the calculation of employment income. To clarify this issue, it is necessary to look at Articles 51 and 100 of the Testo Unico delle Imposte sui Redditi (TUIR [Consolidated Income Tax Act]).

Corporate benefits, provided for under Article 51, include contracted public transport, transport assigned to third parties, or financial support for the purchase of season tickets for local, regional and inter-regional transport. 

At first glance, it would not appear to cover the charging of electric vehicles, but when we read further, we find the answer. In Article 100, expenses incurred for educational and instructional purposes are listed as possible benefits, ‘for a total amount not exceeding ‘five-per-thousand’ of total expenses for employee services resulting from the income tax return’.

In 2022, Article 100 allowed the Italian Revenue Agency to express an opinion on the matter, in answer 329/2022: Can electric car charging be considered a benefit?

The Revenue Agency has given positive confirmation and includes it among educational and awareness-raising actions regarding the urgent issue of decarbonisation and responsible consumption. This is provided, however, that the action is well structured and limited in time ‘to avoid any abuses’.

In other words, the benefit is included under the employment income exclusion regime if:

• Employees prove they have purchased an electric car.
• The time period is limited to six months.
• The company uses self-generated energy or enters into an agreement with a supplier.
• The limits are respected in terms of cost and/or total kW of charging.
• It completely meets the educational purposes required by the regulation.

The NRRP and the 2030 Agenda have, for some time, been two reference points for funds, resources and strategic choices aimed at shaping the Europe of the future. In both we find numerous references to ecological transition and the importance of sustainable mobility.

For example, SDGs 3, 8 and 11 talk, respectively, about health and well-being, decent work and economic growth, and sustainable cities and communities. In the NRRP we find missions M2, M3 and M6, respectively ‘green revolution and ecological transition’, sustainable mobility infrastructure’ and ‘health’.

It is these overlapping objectives from both plans that provide an excellent framework on which to rethink corporate welfare to include electric cars and charging infrastructure. The interpretation by the Revenue Agency seen here is a significant opening to the topic, but there is a pressing need for clarity and decisive incentives on the benefit policies related to sustainable mobility and its many benefits. 

At the present, charging is part of Corporate Welfare only under the conditions that we outlined above, for a defined time period and with limits on the total kW consumed. A small step towards the possibility of incentivising sustainable mobility with more conviction. Including it in a more structured manner among tax-exempt benefits could be an important aid to its diffusion, both for commercial use and for private travel.