2023 Substitute Tax on Severance Pay (TFR) Balance and Handling of Any Credit for Offset on the F-24 Form
Feb. 2, 2024
Reading time: 2 min
News Flash No. 5/2024
Due to the significant reduction in the revaluation rate for severance pay (which was nearly 10% last year but has dropped considerably this year to 1.944162%), the calculation of the balance of the substitute tax resulted in a credit, due to the fact that the advance payment was based on the rate of 9.9745%, in effect as of December 31, 2022, while the balance was calculated using the rate in effect as of December 31, 2023.
As a result of the reduction in the TFR revaluation rate, the amount that companies paid by December 18, 2023, actually exceeded the total amount due for 2023, resulting in a credit balance.
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