With the start of the 2025 Income Tax Return campaign, running from April 8 to June 30, 2026, a common question among citizens is whether traffic fines can be considered deductible expenses. The Tax Agency has made it clear that these penalties are not tax-deductible.
Current regulations, specifically Article 15 C of the Corporate Income Tax Law, explicitly state that fines and penalties, both criminal and administrative, as well as surcharges for executive periods or late declarations, are not considered tax-deductible expenses. This provision applies without distinction to any individual or entity receiving a sanction.
Fines and criminal and administrative penalties, surcharges for the executive period, and surcharges for late declarations without prior request shall not be considered fiscally deductible expenses.
This rule affects all types of taxpayers, including self-employed individuals, retirees, employees, and those who are unemployed. For companies, the situation is identical: penalties are not deductible, as a financial penalty cannot be transformed into a tax benefit.
In addition to the inability to deduct fines, the Tax Agency warns about the importance of meticulously reviewing data before submitting the declaration. Errors or incomplete information can lead to additional penalties. Furthermore, late submission also incurs significant surcharges. For each month of delay, an initial 1% surcharge is applied, increasing progressively. If the delay exceeds 12 months, the surcharge rises to 15%, plus late payment interest.
