The new withholding tax model takes effect on Saturday, July 1, with the government’s intention that the changes will ensure that an increase in gross income corresponds to an increase in net income.
“This new model aims to ensure that two fundamental objectives are met: to ensure that an increase in gross income always corresponds to an increase in net income at the end of the month; by completing the IRS Model 3 return to deliver,” the Treasury Department said in a statement released this Friday.
According to the ministry, this new model is in practice an approximation of the amount that is withheld during the year and the amount to be settled annually.
The Ministry of Finance indicates that the application of these new tables will result in “a net monthly increase over the amount they earned in the first half of the year” for most taxpayers.
Three simulations are presented in the statement: single with no dependents, single with a dependent and married, two holders, with a dependent.
In the case of a household of only one person, compared to the first semester, monthly net wages vary between 1% and 2% for gross wages between 760 euros and 3,400 euros, while a single person with one dependent can see his net wage increase by between 2% and 5% for the same salary range.
For a couple with a dependent, the net profit is limited to between 1% and 3% on these gross incomes and compared to the first six months of the year.
Source: DN
