Personal Income Tax (PIT) Law

  • Tax relief on catering expenses of employees: PIT is not applied on employer’s paid catering services not exceeding 480 euros annually (40 euros monthly) per employee. Tax relief on catering expenses is considered as additional benefit not subject to the payroll tax and SSI (statutory social insurance). To get tax relief, the employer must meet certain conditions: e.g. employ at least 6 employees, not have tax debts exceeding 150 euro on 15 December of the previous year. More detailed information in the article: "Payroll tax relief staff catering services" (
  • Payments from private pension funds: If an member of pension plan contributes to a private pension plan in a tax year, but also receives payments from a pension plan during the tax year or the post-tax year, taxable income of an individual shall be increased by the difference of contributions paid and savings in the pension fund.
  • Additional tax exemptions related to dependent persons: The range of persons for which the person is entitled to claim the allowance for dependents is extended - relief will extend to a spouse off work that has a custody of a child who is minor or a disabled person, if the spouse off work does not receive taxable income or state pension.

Personal allowance

  • In 2017 taxpayer's minimum monthly non-taxable allowance will be 60 euros. In the coming years, the minimum monthly non-taxable allowance will decrease gradually: 2018 – 40 euros; 2019 - 20 euros; 2020 0 euros.
  • Differential non-taxable minimum will be applied once a year by submitting an annual income tax declaration and its amount will depend on the taxpayer's annual taxable income in a tax year. First annual income tax declaration, where differential non-taxable minimum will be assessed, will be for year 2016.

Allowance for dependent

  • In year 2017 the allowance for each dependent remains unchanged, and it is 175 euros.

Minimum wage

  • In 2017 minimum monthly wage with normal working hours is 380 euros. Calculation of a minimum hourly rate remains the same. It depends on the normal working hours in a particular month, thus it is determined on a monthly basis.

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