There are six important things to every employee – whether you are an entrepreneur, a civil servant or a teacher… If you do not follow them, you are likely to become a tax debtor to the state!
#1
In the Electronic Declaration System (EDS) you can view the projected monthly non-taxable minimum, as well as find the Personal Income Tax and social contributions paid by a particular person by month.
#2
Information on the income of a natural person for a calendar year can be found in the EDS “Statements” section by selecting the option “Prepare a new statement” / “Statement of income of a natural person” and indicating the year for which information is required.
You can ask your accountant for advice, but objectively, the employer’s accountant will not always know the full amount of income a natural person had during the year, as there may already be several sources of income.
#3
According to the established procedure, the SRS forecast monthly non-taxable minimum for each of us is calculated twice for a calendar year – in December of the pre-tax year and in July of the current year. Accordingly, the calculation made in July also provides for the recalculation of the non-taxable minimum, which corresponds to the current situation of a natural person.
# 4
Starting from 1 October 2018, the SRS shall ensure the calculation of the income of natural persons and, upon establishing that the threshold has been exceeded, shall automatically make a note regarding the non-application of the non-taxable minimum by 31 December of the calendar year.
# 5
The aim of the functionality introduced in the EDS is to provide an opportunity for any of us as taxpayers to make a note on non-application of the non-taxable minimum, if income has already reached or will reach the amount above the annual differentiated non-taxable minimum, i.e. in 2020 – 12,000 thousand EUR.
#6
If it is known that the monthly income during a calendar year will exceed 1000 EUR, then it is recommended for any of us to make a note in the SRS EDS system about non-application of the non-taxable minimum in order not to create a tax debt in the future. The main principle to remember is that the lower the income, the higher the non-taxable minimum!
P.S. Next time we’ll talk again on what is useful to you. But now – I invite you to fill in the questionnaire so that we can finally talk about the situation of your company and possible risks from the point of view of accounting! The questionnaire can be found here.