From 2018 to 2022, the principle of tax exempt income for natural persons applied uniformly – up to 6,000 euros per calendar year and up to 500 euros per calendar month.
As of 1 January 2023, an amendment will enter into force, according to which the income tax exempt income of a natural person will be up to 7,848 euros per calendar year and 654 euros per calendar month. It should be noted that the amount of tax exempt income for a person who has reached retirement age varies. This means that for those persons who will reach the age of old-age pension in 2023, the tax exempt income will be 8,448 euros per year and 704 euros per month.
This change in the amount of the personal income tax exempt income will apply from 1 January 2023 to payments made to the person concerned. It is important to know that the December 2022 remuneration paid to the employee in January 2023 will already have to be taken into account under the new income tax exemption. If an employee wants to make changes to the way their employer calculates their income tax exempt income, they must submit a request to the employer.
The change in the amount of tax exempt income must also be taken into account when filing the 2023 personal income tax return.