The minimum monthly tax allowance is raised to 500 euros (EUR) starting from 2018, but it is set to decrease as the gross income increases. Consequently, personal tax allowances will become progressive in nature, and, as a result, the net income of low and medium income earners will increase.
There are a number of amendments coming into force during 2017 and 2018 that are also relevant for individuals:
- 7% withholding tax (WHT) on domestic dividends that have been taxed at 14% at the level of the distributing company instead of 20%.
- Deposit interest exemption is abolished.
- Progressive minimum monthly allowance of EUR 500.
- Changes to the joint annual tax return of spouses.