Marcel Muráni, Tax Advisor
Obligation to file an income tax return for 2024
A natural person is required to file an income tax return for the calendar year 2024 no later than 31.3.2025, at any tax office or electronically via the Financial Administration portal. The taxpayer is also required to pay the income tax within this period.
A natural person is obliged to file a tax return if their total taxable income for 2024 exceeds the amount of EUR 2,823.24 (except for the cases outlined in Section 32, Paragraph 4 of the Income Tax Act, e.g. if they only have income from dependent activities and requested an annual tax settlement from their employer) or if they report a tax loss.
Any income that is subject to tax and is not exempt from income tax is included in the total taxable income.
Income subject to withholding tax under Section 43 is not included in the total taxable income for the purpose of assessing the obligation to file a tax return (EUR 2,823.24), if:
- the tax obligation is fulfilled by withholding the tax, or
- the taxpayer does not apply the procedure under Section 43, Paragraph 7 (if the taxpayer decides not to treat the withholding tax under Section 43 as an advance payment on the tax).
Income tax rate for 2024 vs 2025
In order to calculate their tax liability correctly, the taxpayer, a natural person, must first classify their income according to the relevant section of the Income Tax Act (§5 – §8), calculate the tax base, and then apply the correct tax rate.
The following table provides an overview of the tax rates in cases where:
- the taxpayer determines the tax base as the sum of partial tax bases from income derived from employment (reduced by non-taxable portions of the tax base), rental income, income from the use of works, and other income,
|
Tax period |
When is it applied? |
Tax rate |
|
2024 |
from the calculated tax base, not exceed 176.8 times the amount of the applicable subsistence minimum, i.e. for 2024 the amount of EUR 47,537.98 | 19% |
| 2024 |
from that part of the tax base which exceeds the amount of EUR 47,537.98 |
25% |
- the taxpayer determines the tax base as the sum of the partial tax bases from income derived from business and other self-employment activities.
|
Tax period |
Achieved taxable income (TI) | Tax rate |
|
2024 |
TI ≤ 60 000 |
15% |
|
2024 |
TI > 60 000 (from that part of the tax base which does not exceed the amount of EUR 47,537.98) |
19% |
|
2024 |
TI > 60 000 (from that part of the tax base which exceeds the amount of EUR 47,537.98) |
25%
|
| 2025 | TI ≤ 100 000 |
15% |
|
2025 |
TI > 100 000 (from that part of the tax base that does not exceed 176.8 times the applicable subsistence minimum) |
19% |
| 2025 | TI > 100 000(from that part of the tax base that exceeds 176.8 times the applicable subsistence minimum) |
25% |
As part of the consolidation package, the threshold of taxable income for the application of the reduced tax rate (15%) is adjusted from EUR 60,000 to EUR 100,000. The reduced tax rate of 15% is maintained, unlike the corporate tax rate, which has been reduced from 15% to 10%.
If the taxpayer has paid himself a profit share (dividend), the following tax rate applies. The above tax rates apply to dividends paid for tax years beginning no earlier than 1.1.2024 and 1.1.2025, regardless of the period in which they are paid.
|
Tax period |
Tax rate on profit-sharing payments |
| 2024 |
10% |
| 2025 |
7% |
Child tax bonus for 2024 vs. 2025
The child tax bonus has undergone several changes, adjustments, and additions in recent years. What is the amount and what are the conditions for claiming the child tax bonus in 2024?
|
In 2024 |
From 1.1.2025 |
||
|
Age of child |
Amount of tax bonus | Age of child | Amount of tax bonus |
| 0 – 18 years | EUR 140 | 0 – 15 years |
EUR 100 |
| 18 – 25 years |
EUR 50 |
15 – 18 years |
EUR 50 |
Development of electromobility from 1.1.2025
Currently, if an employee uses a company car for private purposes, they are taxed on the non-cash income at the rate of 1% of the entry price of the vehicle.
From 1.1.2025, if an employee uses a company car defined as an electric vehicle for private purposes, they will be taxed on the non-cash income at the rate of 0.5% of the entry price of the vehicle.
The information above on this website is intended to give you a basic overview of tax, accounting, and legal regulations. They do not in any way serve as a guide for their application in practice, which may differ significantly from the legislation in force at the time. The information on this website does not guarantee legal, accounting, tax or other professional advice or services. As such, information should not be taken as a substitute for professional consultations with accountants, tax, legal or other advisors. EMINEO PARTNERS shall not be liable and shall not be liable for any discrepancies, omissions or results obtained from the use of this information. All information and examples are provided without any guarantee of their applicability in practice. EMINEO PARTNERS is not obliged to reflect the applicable legislation on the information and examples provided on this website.
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