News Flash No. 13/2022
Subject: New from 2022: additional deduction from gross tax for income earners in the range of 25,001 euros to 35,000 euros
Among other things, the Budget Law for 2022 made changes to Article 13 of the Consolidated Income Tax Act, affecting the calculation of gross tax deductions, which are differently determined, based on the type of income that goes into total income.
For the type of employee and assimilated income, if the total income is more than Euro 25,000 but not Euro 35,000, the deduction due is increased by an amount of Euro 65.00.
This amount is to be understood as an upward adjustment of the previously reproportioned deductions and is to be paid, if the above income requirements are met, in full during the year 2022, as a one-time payment, without making any adjustment to the period of work in the year.
It follows that the tax withholding agent must recognize the additional deduction of 65 euros as of the first useful pay period of 2022, with the understanding that at the end of the year, or at the time of termination of employment, it must recalculate the deduction actually due in relation to the amount of the total remuneration paid in the tax period.