New for 2022: an additional deduction of €65
- March 23, 2022
- Reading time: 2 min
Updated: May 31, 2022
News Flash No. 13/2022
Subject: Changes Effective in 2022: Additional deduction from gross income for taxpayers with income between €25,001 and €35,000
The 2022 Budget Law introduced, among other things, amendments to Article 13 of the Consolidated Income Tax Law, concerning the calculation of gross tax deductions, which are determined differently depending on the type of income included in the total income.
For income from employment and similar sources, if the total income exceeds €25,000 but does not exceed €35,000, the applicable deduction is increased by €65.00.
This amount is intended as an upward adjustment to the deductions previously recalculated on a pro-rata basis and must be paid, provided the aforementioned income requirements are met, in full during the year 2022, as a one-time payment, without any adjustment based on the period of employment during the year.
It follows that the withholding agent must apply the additional deduction of 65 euros starting with the first applicable pay period of 2022; however, at the end of the year, or upon termination of employment, the withholding agent must recalculate the deduction actually due based on the total amount of compensation paid during the tax year.
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