Section 7-quinquies of the law which converted decree no. 225 dated 1 December 2016 containing “Urgent fiscal measures and measures for financing non-deferrable requirements ”, published in Official Gazette no. 282/2016, provides an authoritative interpretation of the definition of “earnings from work carried out on assignment” and “travelling worker on assignment”. In particular, paragraph 6 of section 51 of the TUIR (Consolidate Law on Income Taxes) should be interpreted as meaning that travelling workers on assignment are intended as workers for whom the following conditions exist simultaneously: (a) no indication, in the engagement letter, of the place where the work services are to be carried out; b) carrying out work that requires continuous travelling by the employee; c) payment to the employee of an indemnity or fixed higher salary for work carried out in different places, which are paid without specifying whether the employee has actually travelled to the place where the work is to be carried out or the actual place where such work is carried out. The law then states that workers for whom the above provision does not apply because the abovementioned conditions do not exist concurrently are entitled to the treatment set forth for travel allowances provided for by paragraph 5 of section 51. Section 7 – quinquies therefore resolves a debate that had arisen over the years in practice and case law on the correct definition of “travelling worker on assignment”. Moreover, given that this is an authoritative interpretation law, it may be applied retroactively and thus, if the conditions exist, even to previous and pending disputes and lawsuits.
