Article 15v of the Law on Citizens’ Income Tax stipulates that the income tax base for a newly settled taxpayer, for the earnings based on an employment agreement for an indefinite period with a qualified employer, where the taxpayer establishes employment at a workplace where there is a need for the employee to have special professional education and for which there is a need that cannot be easily satisfied on the domestic labour market, amounts to 30% of the realized income.
The right to tax relief
On September 26, 2022, the Tax Administration published a notice on how to submit a tax return on the earnings of newly settled taxpayers who exercise the right to the aforementioned tax relief.
The Rulebook on the tax return for withholding tax prescribes special code OL 24 for the earnings, or compensation of earnings, of a newly settled taxpayer.
The notice of the Tax Administration contains detailed information on the payers’ and recipients’ income codes, calculation of taxes and contributions, as well as examples of calculations and income codes.
