Several tax changes will take place from 2025, which will not only affect companies, but will also bring changes to wage earners. For the first time in the new year, the income declaration will also be affected by the changes that came into effect in 2024.
According to Annika Traks, CFO of Merit Tarkvara, one of the biggest changes from the new year is related to tax-free income, which you have the right to deduct from your taxable income. “With the amendment to the law adopted last year, the additional tax-free income for children, spouse and housing interest disappeared from this year. This means that they can no longer be taken into account in the income declaration submitted next year for 2024,” said Traks.
Previously, it was possible to count an additional tax-free income of 1,848 euros from the second child and 3,058 euros from the third child. You still have the right to deduct training costs and donations up to 1,200 euros from tax-free income, and you still have the right to deduct contributions from the III pillar of the accumulated pension up to 6,000 euros.
In addition, it is worth knowing that from January 1, 2025, it is possible to choose 2, 4 or 6 percent as the payment rate for the accumulated pension (pillar II). For this, it is necessary to submit an application to the keeper of the pension register before November 30 of this year. If no application is filed, the default payment rate is 2 percent of salary.
The elimination of the tax hump was also planned from 2025, but this change is postponed to 2026. “From a payroll perspective, removing the tax hump is welcome as it helps reduce people’s fear of earning more or working overtime, which could affect the tax-free amount. In this way, a situation could no longer arise where a person has to pay more income tax on the basis of an income declaration due to increased income,” explained Merit Tarkvara’s financial manager.
2024-10-22 10:47:00
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