Conditions for tax exemption of the 13th salary

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We have already informed you about the tax-deductible benefit of 13th and 14th salaries in accordance with an amendment to the Income Tax Act (Act No. 595/2003 Coll.) in the February 2018 edition of the newsletter. With effect from 1 March 2019, the Income Tax Act has been amended by Act No. 54/2019 Coll., on the protection of notifiers of anti-social activities. The specific change affects the issue of 13th salaries paid for work during the summer holiday period.

One of the previous conditions for the tax exemption of 13th salaries was that such a 13th salary would amount to at least the average monthly earnings of the employee. With effect as of 1 March 2019, it will be sufficient for a single employer to pay a 13th salary in the amount of €500. This condition for the income tax exemption of 13th salaries will be applied for the first time to payments made in June 2019.

Other conditions for tax exemption purposes will not be changed.


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