NON-TAXABLE PART OF THE TAX BASE

The Income Tax Act allows the taxpayer to claim a number of tax advantages, such as the non-taxable portion of the tax base of the taxpayer and his/her wife or husband, as well as the application of the tax bonus on the dependent child and the application of the employment bonus.

Non-taxable portion of the tax base of the taxpayer

 Non-taxable portion of the tax base on the wife/husband

 Non-taxable portion of the tax base on the wife/husband and its calculation 

Tax bonus

Non-taxable portion of the tax base of the taxpayer

Nezdaniteľná časť základu dane - Bratislava -Košice - Žilina - TrenčínA taxpayer is entitled to claim a non-taxable portion of the tax base only from the sub-base of the income tax from the dependent activity and from the business income or from other separate earning activity or their totality, that means actively carried out work, depending on the reported tax base.

The partial tax base calculated from the so-called passive income (such as rental income, income from non-monetary gains, income from the sale of property, income from the payment of the unit certificate) can not be reduced by a non-taxable portion of the tax base.

If the taxpayer’s tax base is equal or less than 19,809 € in 2017, the non-taxable amount is 3,803.33 €.

If the taxable amount of the taxpayer’s tax is greater than 19 809 €, the non-taxable amount is the difference between the sum of 8 755,578 and one quarter of the taxpayer’s tax base; if this amount is less than zero, the non-taxable portion of the taxpayer’s tax base per year is equal to zero.

Non-taxable portion of the tax base of the taxpayer is not entitled to the taxpayer who is at the beginning of the taxable period recipient of

  • retirement pension
  • early retirement pension
  • retirement pension savings
  • pension from foreign compulsory insurance of the same kind as in SR
  • annuity pension

and if the amount of that pension is in excess of the amount of the non-taxable portion of the tax base determined for the taxable period.

If the total amount of the pension does not exceed the amount of the non-taxable part of the tax base of the taxpayer for the taxable period, the taxpayer may apply the non-taxable amount of the tax base of the taxpayer in the amount of the difference between the non-taxable amount of the taxable person’s tax base (3,803.33 €) and the paid amount of the pension.

Non-taxable portion of the tax base on the wife/husband

A taxpayer is entitled to claim a non-taxable portion of the tax base on the spouse only from the sub-base of the tax on income from the dependent activity and from the income from business or from other separate earning activity or their aggregate, that means from actively carried out work, depending on the reported tax base.

The partial tax base calculated from the so-called passive income (such as rental income, income from non-monetary gains, income from the sale of property, income from the payment of the unit certificate) can not be reduced by a non-taxable portion of the tax base.

Non-taxable portion of the tax base on the wife/husband may be claimed by the taxpayer, only if the spouse lives with the taxpayer in the same household and meets at least one of the following conditions:

  • cared for a dependent minor living with a taxpayer in the household
  • received a care allowance in the relevant tax period
  • was enrolled in job applicants’ records
  • is considered to a disabled person
  • is considered to be a person with severe disability

If these conditions are met for only one or several calendar months in a taxable period, the taxpayer may reduce the tax base of the non-taxable amount of the tax base on the wife/husband corresponding to 1/12 of the non-taxable amount for each calendar month at the start of which the conditions for applying this non-taxable part of the tax base were met.

Non-taxable portion of the tax base on the wife/husband and its calculation

Nezdaniteľná časť základu dane - Bratislava - Žilina - Košice - TrenčínIf the taxable person reaches in the tax year 2017 taxable base equal to or less than 35 022.31 €, the non-taxable amount of the tax base is:

  • 3 803.33 € if the spouse living in the same household had no own income
  • the difference between the sum of 3 803.33 € and the income of a spouse living in the same household, if the spouse had personal income not higher than 3 803.33 €
  • zero, if the spouse living in the same household had personal income higher than 3803.33 €

If the taxable person reaches in the tax year 2017 taxable base of more than 35 022.31 €, the non-taxable amount of the tax base is:

  • the difference between the sum of 12 558,906 (63,4 times the applicable subsistence minimum, which at 1 January 2017 represents the sum of 198,09) and one quarter of the taxable person’s tax base, if the spouse living with him in the household had no own income; if this amount is less than zero, the non-taxable portion of the taxable amount on the spouse (spouse) is equal to zero
  • the difference between the sum of 12 558 906 and one quarter of the taxable person’s tax base, deducted by the spouse’s own income, if the spouse had his/her own income; if this amount is less than zero, the non-taxable portion of the tax base on the spouse is equal to zero

Calculation of spouse’s own income

Any income shall be included in the spouse’s own income, even if it’s exempt from the income tax, apart from the employee’s bonus, the tax bonus, the increase in the pension for sickness and apart from the state social benefits, shortened by the paid insurance and the health and social insurance contributions, which he/her was obliged to pay.

State social benefits consist of:

  • child birth allowance,
  • addition to child birth allowance,
  • contribution to parents who gave birth to three or more children simultaneously, or who have repeatedly re-born twins or more children over the course of two years,
  • funeral allowance,
  • parental allowance,
  • child allowance,
  • addition to child allowance,
  • Christmas allowance to pensioners,
  • retirement allowance for political prisoners.

Note: Maternity, sickness benefits, all kinds of pensions, winnings, etc., are counted in the total income of the spouse and affect the amount of the non-taxable portion of the tax base the husband/wife will apply to the spouse.

More info here.

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