Worker
A salaried worker is liable to tax on income from employment and to contributions from salary. Person liable to calculate, withhold and pay the said charges on behalf of the employee is the employer.
1. Tax on income from employment is payable on gross salary reduced by the amount of contributions (20%) and personal allowance, which constitutes the taxable amount. Basic personal allowance amounts to EUR 600.00 per month and may be increased depending on personal circumstances (dependent family members, disability).
Income tax is payable on taxable amount at the rates prescribed by units of local self-government. Lower rate is applied on the taxable amount of up to EUR 60,000.00 annually, while the taxable amount higher than this is taxed at a higher prescribed rate.
Prescribed tax rates for annual income tax
Tax liability for young people up to 25 years of age is reduced by 100%, and for young people aged 26 to 30 by 50% for a salary up to annual base of EUR 60,000.00 This right is exercised on the basis of annual income tax assessment.
2 . Contributions from salary for pension insurance are payable in the amount of 20% of gross salary (for person falling within the second pillar of pension insurance, the amount of 15% is payable on the basis of generational solidarity, and 5% on the basis of individual capitalised savings).
The reduction of contributions for pension insurance on the basis of generational solidarity (1st pillar)
Monthly basis for calculating contributions for pension insurance on the basis of generational solidarity (1st pillar) is reduced:
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by fixed amount of EUR 300.00 for the insured person whose total amount of monthly gross salaries amounts to up to EUR 700.00 (inclusive of EUR 700.00)
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by amount received by calculating 0.5 x (EUR 1,300.00 - the total amount of gross salaries for specific month) for the insured person whose total amount of monthly salaries falls within the range of EUR 700.01 to 1,300.00
The said reduction is used regardless of the number of insured days in a given month and regardless of whether the employment was full time or part-time.