Individual - Significant developments

Last reviewed - 20 January 2023

Starting from 1 January 2023, the higher 32% personal income tax (PIT) rate for the income exceeding the threshold of EUR 101,094  should be applied. 

Employment income exceeding EUR 101,094  threshold is subject to a lower rate of social security contributions (SSC) at 6.98%. Employer‘s SSC of 1.77% (standard rate) is not capped.

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 202,188.