Single tax and single levy on labor

Finance Minister Matovič (OĽaNO) has presented the second part of his tax reform that changes taxes on labor. He aims to increase the net salary of 99% of workers, with average tax falling by 5%. This will cost the state €500m annually, and Matovič wants to fund this by eliminating tax and payroll levy exemptions that will increase revenue by €550m annually. Under the new system, a worker will pay a 19% income tax from gross wage and no levies. Companies will pay levies totaling 39% of gross wages. The first €357 of salary will be exempt, and full taxes and levies will kick in only for wages in excess of €1,111. There will be no cap for the payment of payroll levies. The basic deductible level will be higher for students and the handicapped.

(trend.sk)