Tax 

Cancellation of super-gross wage recalled. Personal taxation will remain unchanged next year

The Ministry of Finance withdrew its original proposal to cancel super-gross wage and the related conceptual changes in the personal income tax calculation. The proposal was part of an amendment to the Income Taxes Act with the proposed effective date from January 2019, which will now contain only the implementation of the Anti Tax Avoidance Directive (ATAD).

The income of natural persons will therefore continue to be taxed at 15%, with a solidarity tax surcharge of 7% for income exceeding the 48th multiple of the average wage per year. Since the work on the new act on income taxes (which we informed you about several months ago) has been suspended, employers and taxpayers can enjoy legislative peace. It is impossible to rule out last-minute surprises in the form of parliamentary draft proposals during the discussion of the tax amendment for 2019, but they are not expected.

However, we recommend paying attention to the changes in interpretation by the Financial Administration, especially with respect to personal income tax prepayments of tax non-residents and residents working abroad. Tax authorities complicate the reimbursement of amounts overpaid and challenge the method of calculation of tax prepayments, the correct calculation of prepayments therefore becomes a difficult task where it is worth contacting tax specialists for assistance.

The article is part of dReport – June 2018, Tax news; Grants and investment Incentives

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