What are the most common reasons for which the payable amount of personal income tax is calculated in the Tax Return?
What are the most common reasons for which the payable amount of personal income tax is calculated in the Tax Return?
The payable amount of personal income tax usually results from the recalculation of tax-exempt amount of income (TEAI). If the amount of the TEAI, that has been applied for you by your employer, is bigger than the applicable annual TEAI, you must recalculate the annual TEAI and declare the annual income. You have to pay the income tax from the difference that was calculated after deducting the annual TEAI calculated according to the formula from the actually applied amount of the TEAI. For example, if you only received wages, for which the TEAI of EUR 2,000 was actually applied, and the applicable amount of the TEAI, that was calculated according to the formula, is EUR 1,400, then arrears of 20% of personal income tax shall be calculated from the difference obtained (EUR 600).