Effective as of 1 January 2020 part 2

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  • introducing a reduced income tax rate of 15% for business individuals with income from business and other self-employment up to EUR 100,000;
  • increasing the non-taxable portion of the taxpayer’s tax base to an amount equal to 21 times the amount of the applicable subsistence minimum (from the current 19.2 times);
  • a change in the range of income from which income tax advances are paid by a business individual with an active income and an increase in the threshold for the obligation to pay advances from EUR 2,500 to EUR 5,000;
  • extending the income tax exemption for defined types of in-kind income (employee education, medical preventive checks); change in grossing up of in-kind income;
  • increasing the amount of employee exempted in-kind payment in order to ensure accommodation by an employer, from EUR 60 to EUR 100;
  • allowing an employee to submit by electronic means an application for the annual calculation of tax advances based on mutual agreement with an employer; 
  • introducing the possibility for an employer to issue and deliver to an employee, based on mutual agreement, certain types of documents by electronic means;
  • terminating the employee obligation to annually sign a declaration to apply the non-taxable portion of the taxable person’s tax base and tax bonus.
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