News Flash No. 5/2024
Due to the significant reduction in the rate of revaluation of the Severance Pay (which last year was close to 10% while this year has been significantly reduced, standing at 1.944162%), the calculation of the balance of the substitute tax generated a credit, due to the circumstance that the down payment was commensurate with the rate of 9.9745%, in effect as of December 31, 2022, while the balance was calculated with the rate in effect as of December 31, 2023.
As a result of the reduction in the rate of revaluation of severance pay, the amount that companies paid by Dec. 18, 2023 was actually in excess of the total amount due for 2023, with the corresponding formation of a credit.