BRATISLAVA, March 7, (WEBNOVINY) –The Finance Ministry suggests bringing down the non-taxable part of tax base of all taxpayers from 19.2-fold to 18-fold the living standard next year. The annual non-taxable part for 2012 would be EUR 3,413.70. “The non-taxable part of tax base for active income of a private individual would reach EUR 3,641.28 in 2012 under the current system,” reads a tax and payroll levy reform blueprint tailored by the Finance Ministry. In addition to this, the ministry plans to eliminate applying of non-taxable part of tax base for spouse. Finance Minister Ivan Miklos said that the non-taxable part could be bound exclusively to persons whose partner takes care of a dependent child of up to 26 years; or, taxpayers whose spouses are on parental leave will be entitled to the non-taxable part.
As the minister stated potential preservation of the so-called millionaire tax remains open, too. Miklos, however, admitted that he would like to cancel this tax. The material further suggests that with passive income health insurance premiums be paid solely on dividend income. The rate of social insurance premiums paid by the state is to go up from the current 19 to 26 percent. Rates of health and social insurance premiums will be technically converted after the introduction of the super-gross wage.
Net income of some 230,000 self-employed individuals will drop due to the tax and payroll levy reform, which will raise the calculation base for premiums as well as the tax base, which no longer will be reduced by paid premiums. Some 170,200 such persons reporting profit before taxation and premiums deduction ranging from more than EUR 3,416 to EUR 8,162 will face income drop of 8.4 percent or EUR 312.6 annually. The self-employed with profit before taxation and premiums deduction from EUR 8,163 to EUR 84,706 will lose 11.2 percent or EUR 1,208.4 on average.
SITA