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Central Management Legislation and Litigation
Rome, 7 March 2008
SUBJECT: Deduction for subscriptions to public transport (Article 1, paragraph 3
09, Act No. 244 of December 27, 2007).
re eligible to deduct ........................... 3 DOCUMENTATION FOR deduct ...
............ 5
3.1. Ticket name .............................................. ................
................... 6 3.2. Ticket no name ......................................
....... ............................. 6
INTRODUCTION The Law 244, December 27, 2007 (Finance Act 2008) art. 1, paragraph
309, introduced for 2008, a new tax relief on expenses incurred for the purchas
e of subscriptions to public transport services. In particular, the paragraph in
question recognizes a deduction from gross income tax of 19%, up to the amount,
for expenses incurred before December 31, 2008 to purchase subscriptions to ser
vices "of local public transport, regional and interregional, for an amount not
exceeding $ 250 (with a tax saving, then, to 47.50 euros). The rule specifies th
at the deduction it provided that those expenses are not deductible in determini
ng individual income that form the total income (for example, where the subscrip
tion fee for the cost of transport is inherent and therefore deductible from bus
iness income or self-employment). The deduction even if it is incurred in the in
terests of family members who have been charged under Article. 12 TUIR.
Subjects allowed to deduct (beneficiaries) The ratio of available comment is due
to the will of
legislature to promote the use of public transport for the revival of collective
sustainable mobility, urban and suburban, encouraging in the context of environ
mental policy measures, including reducing emissions of pollutants. The technica
l report to the Finance Act in calculating the impact that the facility produces
tax revenues refers to "students and workers using public transport to travel t
o the place of
study and work "in particular" to the average costs of annual subscriptions for
students and workers and urban and suburban commuters. Although the text of the
rule does not refer to the period of
subscriptions or entities mentioned in the report, the Court finds that the dedu
ction is given to those who use public transport for their daily mobility, such
as students, workers, pensioners. This is corroborated by the fact that the iden
tification of the owners of the benefit derives automatically the type of ticket
purchased (subscription), as specified in the next paragraph.
Expenditure eligible to deduct the income tax deduction, introduced by the invok
ed Article 1, paragraph 309,
On the expenditure incurred for the purchase of subscriptions to public transpor
t services, local, regional and interregional cooperation. In this regard it is
considered that the purpose of deduction under consideration is meant by "subscr
iption" a ticket entitling the holder authorized to make unlimited travel for se
veral days, on a certain route or the entire network, in a specified time period
. Based on the ratio of the standard, under the preceding paragraph, there is, h
owever, that they are permitted to deduct only the cost of subscriptions that us
e does not imply an episode of public transport. It is considered therefore that
the benefit of subsidy tickets which they last hour, although higher than daily
, such as tickets to long lasting 72 hours or so-called integrated transport car
ds that include even more services to those
transport such as the tourist maps that besides the use of public transport allo
w entry to museums or performances. For public transport services, local, region
al or interregional means activities involving the transport of persons, for gen
eral access, provided by public entities or by private foster public service bas
ed on specific licenses or permits from public entities. Fall into that category
any public transport service, regardless of the means of transport, operating c
ontinuously or periodically with routes, times, frequencies and tariffs. Given t
he broad scope reference "local€regional and interregional "contained in the ru
le, the benefit may relate to subscriptions relating to public transport taking
place both within a region, as by crossing several regions. The deduction respon
sible only for expenses incurred during 2008 and pursuant to a cash basis which
is the principle of charging time on typical charges. In this regard states that
the deduction can be calculated on the entire expenditure in 2008 for the subsc
ription, even if it expires in the next tax period (eg, subscriptions valid from
1 March 2008-28 February 2009). It should be pointed out that the maximum deduc
tion of $ 250 must be considered to cumulative costs incurred by the taxpayer fo
r their subscription and that of dependents. This follows clearly from the techn
ical report accompanying the bill of financial reporting. The use of the deducti
on is allowed within the limits of capacity of taxes due. Failure to use the ded
uction for incapienza, this is lost, with no possibility to postpone the fruitio
n next year.
Documentation to qualify for the deduction to deduct income tax on the purchase
subscriptions to public transport services taxpayers are required to acquire and
maintain specific documentation to be submitted if requested by the office and
/ or when completing the tax return with the assistance of Caf or professional i
ntermediaries. First, the taxpayer is required to keep the ticket. In this conne
ction it is recalled that the decree of June 30, 1992 - on determining the chara
cteristics of the ticket on the collective transport of passengers and vehicles
and luggage - established in Article 1 that the provision of collective public t
ransport of passengers and vehicles and luggage, carried by any means, and for w
hich it is not required if the invoice is not requested by the customer, transpo
rt tickets fulfill the function of proof of purchase. Moreover, according to tha
t decree, the travel ticket must have in any case the following: a) company name
or business name or name of individual or logos identifying the undertaking and
VAT number of the issuer the ticket or making the provision of transport, b) a
description of the characteristics of transport, c) Amount of fees payable d) se
rial number; e) date to be entered for the issuance or use. The indication refer
red to in subparagraphs b) and c) can be expressed in alphanumeric code whose de
coding has been previously communicated to the appropriate office of the revenue
, or printed on the ticket itself.
Transport companies which make use of that power to be displayed in alphanumeric
code, the amount of fees due and / or a description of the transport, are requi
red to publish the decoding of these codes for 2008, including through electroni
c channels .
3.1. Ticket name on the ticket name, the taxpayer is required to keep should be
listed and the length of the expenditure. In order to demonstrate that the expen
diture was in 2008, the taxpayer must also maintain the bill may request the ope
rator of the transport service or any other documentation proving the date of pa
yment. If the taxpayer himself is unable to obtain that information (event possi
ble, especially because of the VAT treatment of supplies of tickets) the expendi
ture incurred shall be deemed to coincide with the commencement of the subscript
ion (for eg. for a valid subscription name that takes from 1 February 2008, the
expenditure incurred on that date will be considered). In case of release or cha
rge the ticket made in electronic format requires certifies that contains the es
sential information to classify the ticket as well as any other useful informati
on to identify the service rendered (subject to user indication, duration, expen
diture and the date of incurring of expenditure).
3.2. If ticket not name the ticket is purchased the same name must be preserved
and accompanied by a self made in the manner and
time allowed by law (declaration in lieu of an affidavit of the DPR 28 December
2000, No. 445, Art. 47€whose signature can not be authenticated if accompanied
by a photocopy of the identity of the subscriber) made by the taxpayer stating t
hat the subscription has been purchased for the taxpayer or his family dependent
The Regional offices will ensure that the principles enunciated in this circular
should be applied with uniformity.