New for 2022: additional deduction of €65
- Studio Piceci
- March 23, 2022
- Reading time: 2 min
Update: May 31, 2022
News Flash No. 13/2022
Subject: New for 2022: additional deduction from gross tax for income earners in the €25,001 to €35,000 bracket
The 2022 Budget Law has, among other things, amended 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 is less than €35,000, the deduction is increased by €65.00.
This amount is to be understood as an upward adjustment of the previously re-proportioned deductions and must be paid, provided the above-mentioned income requirements are met, in full during the year 2022, as a one-off payment, without any adjustment to the period of work during the year.
It follows that the withholding agent must recognize the additional deduction of €65 from the first applicable pay period of 2022, it being understood that at the end of the year, or upon termination of employment, the deduction actually due must be recalculated in relation to the total amount of remuneration paid during the tax period.