Increase in tax bonus
From July 1, 2022 and further again, from January 1, 2023, the amounts of the tax bonus will be changed. At the same time, the age limits will be reduced from three to two, namely for children under 15 years of age and children over 15 years of age. The maximum amount of the tax bonus is also introduced, which represents an increasing percentage limit of the tax base depending on the number of children as follows:
- 1 child – 20% of the partial tax base,
- 2 children – 27% of the partial tax base,
- 3 children – 34% of the partial tax base,
- 4 children – 41% of the partial tax base,
- 5 children – 48% of the partial tax base,
- 6 or more children – 55% of the partial tax base.
Where partial tax base for the relevant month is the difference between the gross salary and social/health deductions. Until December 2022, it is also possible to apply the procedure valid until June 30, 2022, if it is more advantageous for the employee. The payroll accountant/payroll software will calculate the tax bonus in both ways and apply the higher amount.
In the annual tax reconciliation/tax return, the tax basis is half of the partial tax base from the dependent activity for the year 2022. In case that the taxpayer started performing dependent activity according to § 5 only in the period from July 1, 2022, the basis is the entire partial tax base for the year 2022. The tax bonus for the months of January to June 2022 will be determined "in the old way". For the rest of the year, the tax bonus will be calculated in both ways and the more favorable amount is paid out.
Overview of the new tax bonus amounts:
|
|
from 1st July 2022 |
from 1st January 2023* |
|
a child under 15 years of age |
€70 |
€100 |
|
a child over 15 years old |
€40 |
€50 |
*the change has been approved by the Slovak parliament and is valid at this point but the president of Slovak republic has questioned it and the Constitutional Court of the Slovak Republic will need to either confirm or reject this change. Its validity is therefore not certain.
For comparison, the amount of the tax bonus until June 30, 2022 was:
|
age up to 6 years |
€47.14 |
|
age from 6 to 15 years |
€43.60 |
|
age from 15 years |
€23.57 |
Please note that only a taxpayer who does not receive a subsidy for meals for a child is entitled to a tax bonus.
Example no. 1
The employee has a gross salary of € 1,000, has 2 children - 4 and 16 years. He does not claim the meal subsidy.
Old calculation:
Tax bonus = € 47.14 + € 23.57
Tax bonus = € 70.71
New calculation:
Tax bonus = € 70 + € 40 = € 110
- at the same time, a limit of 27% of the partial tax base applies for 2 children which is € 233.82
Since the tax bonus according to the new calculation is higher, the employee will get € 110 because it is more advantageous and at the same time meets the limit.
Example no. 2
The employee has a gross salary of € 650 and has 4 children - 5, 7, 12 and 14 years old. He does not claim the meal subsidy.
Old calculation:
Tax bonus = € 47.14 + € 43.60 + € 43.60 + € 43.60
Tax bonus = € 177.94
New calculation:
Tax bonus = € 70 + € 70 + € 70 + € 70 = € 280
- at the same time, a limit of 41% of the partial tax base applies for 4 children which is € 230.79
Since the tax bonus according to the new calculation is higher, the new methodology will be used but with a cap of € 230.79 so the amount that the employee will receive is € 230.79.