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Employee’s partial tax base = gross wage - contributions (13.4% of the gross wage).
In the transitional period from 1 July 2022 to 31 December 2022, the employer will compare the amount of the tax bonus according to the two above-mentioned calculations (i.e. old and new) and award the higher allowance.
Example 1:
The employee's gross wage is EUR 850; the partial tax base is EUR 736.10.
Calculation of the tax bonus after 1 July 2022 for children up to 6 years of age (note: post July 1, the tax threshold up to 6 years of age is abolished and only the threshold up to 15 years of age is introduced):
In the above model cases, the bonus after 1 July 2022 will be recalculated using the new method, as the amount of the tax bonus using the new method is more favourable than prior to 30 June 2022 (i.e. EUR 47.17 / child up to 6 years of age).
Example 2:
The employee's gross salary is EUR 850; the partial tax base is EUR 736.10.
Calculation of the tax bonus after 1 July 2022 for children aged 6 to 15 (note that the 6-year age limit is abolished and a uniform limit of up to 15 years is introduced):
In the above model cases, the bonus after 1 July 2022 will be recalculated using the new method, as the amount of the tax bonus using the new method is more favourable than prior to 30 June 2022 (i.e. EUR 43.60 / child).
Example 3:
The employee's gross salary is EUR 850; the partial tax base is EUR 736.10.
Calculation of the tax bonus after 1 July 2022 for children aged 15 and over:
In the above model cases, the bonus after 1 July 2022 will be recalculated using the new method, as the amount of the tax bonus using the new method is more favourable than prior to 30 June 2022 (i.e. EUR 23.57 / child).
Example 4:
An employee has a gross wage of EUR 700 and has four children aged 1, 4, 10 and 11.
The tax bonus is rounded to the euro cents mathematically.
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