Individual - Significant developments

Last reviewed - 29 June 2020

Starting from 1 January 2021, the higher 32% personal income tax (PIT) rate for the income exceeding the threshold of EUR 81,162 should be
applied. The threshold is reduced from EUR 104,277.60 which was in force in 2020.

Employment income exceeding EUR 81,162 threshold is subject to a lower rate of social security contributions (SSC) at 6.98%. The legislation
was amended where the possibility to refund SSC paid during the calendar year at a standard rate was foreseen for the employees having
more than one employer and exceeding the aforementioned annual income threshold in total. In previous years SSC ceilings were applied to
each employer separately and the refund was not possible even if the annual threshold was reached by adding individual's income from all
the companies.

Taxation of other personal income was slightly reduced and the progressive PIT rate at 20% is applied to annual income exceeding EUR
162,324 instead of EUR 148,968.