Please be informed that below you can find the information on the Law Amending Article 20 of the Law on Personal Income Tax (Law No. XIV-10981 of 17 May 2022) which amended the applicable Tax-exempt amount of income for 2022 and later (hereinafter - TEAI) and which came into force on 1 June this year. When the salary does not exceed the minimum monthly wage (hereinafter- MMW), the TEAI increases from EUR 460 to EUR 540. Please note that this amendment to the law applies a new TEAI formula and increases the threshold to EUR 1,704, from which the TEAI applies.
Although these provisions of the Law entered into force on 1 June 2022 (if the wage is paid after 1 June 2022, the new provisions of the Law shall apply), it is established that the increased monthly TEAI and annual TEAI apply from 1 January 2022 when declaring income for 2022 and subsequent tax periods during and calculating personal income tax.
Changes for applicable TEAI:
Salary: |
Monthly TEAI |
|
From 2022-01-01 to 2022-06-01 |
From 2022-06-01 |
|
Less or equal to 1 MMW |
EUR 460 |
EUR 540 |
More than one MMW, but less than EUR 1,704 (before the amendment to the Law - EUR 1,678) |
460 - 0.26 x (MW1 - 1 x MMW) |
540 - 0.34 × (MW - 1 x MMW) |
More than EUR 1,704 (before the amendment to the Law – EUR 1,678) |
400 - 0.18 × (MW - 642) |
400 - 0.18 × (MW - 642) |
Working capacity level: |
Monthly TEAI |
|
0–25% |
EUR 740 |
EUR 870 |
30–55% |
EUR 690 |
EUR 810 |
1 Monthly wage or employment income.
Of the population with a working capacity level of more than 55%, the largest increase in after-tax income due to increased TEAI will be for those whose employment-related income per month does not exceed the minimum monthly wage per month (1 January 2022 - € 730) or € 8,760 per year. Income after tax will also increase for people of the same working capacity whose salary does not exceed € 1,704 per month or € 20,448 per year, and for those earning more than € 1,704 per month or € 20,448 per year, after-tax income will not increase.
The TEAI will also increase for people with a working capacity below 55%:
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