Accounting, Payroll, Tax & Legal since 1989

Personal income tax law changes from 2018

I.       Gifts and prizes from employers when value of prize or gift does not exceed EUR 200, are considered non-taxable income. Until 1 January 2018 only prizes from employees when value did not exceed EUR 200 were treated as non-taxable income.

II.     From 2018 the benefit received by an employee when an employer pays for rail and road public transport tickets which are used to travel to and from the work are considered untaxable income.

III.   The formula used to calculate monthly non-taxable amount has changed:

Untill 01.01.2018

From 01.01.2018

310 – 0,5 * (monthly salary – 380)

380 – 0,5 * (monthly salary – 400)

IV.       Individual non-taxable amounts were increased:
a.     For employees having limited working capacity of 0-25% - individual non-taxable amount is EUR 450 per month (earlier – EUR 380);
b.     For employees having limited working capacity of 30-55% - individual non-taxable amount is EUR 390 per month (earlier – EUR 320).

V.      Additional non-taxable amount for employees having children was abolished. From 2018 the parents may apply for special child benefit from the governmental institutions.


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