Govt Proposes No Taxation for Salaries Up to ALL 40,000
From July next year, the floor salary that will not be subject to income tax will go from 30 thousand ALL, to 40 thousand ALL per month. The government also plans to revise some income tax limits on other wages.
According to the draft law, which is still in the form of a preliminary draft, it is proposed that taxpayers with salaries up to 50 thousand ALL halve the income tax for the limit from 30 to 50 thousand ALL, which today is 13%.
The draft law also provides for the change of the progressive taxation band. Thus, the 23% personal income tax will be applied only for salaries over 200 thousand ALL and above from the current 150 thousand. But above the threshold of 200 thousand ALL there will be as a tax a fixed amount of 22 and 100 ALL per month.
The number of taxpayers who benefit from this tax relief is about 5,900. The negative effect that the budget is expected to have from these changes is expected to be around 12 million euros less per year. However, the proposal must first be submitted to the council of ministers and then to be discussed in the Parliament.