Background
When the budget for 2019 was to be adopted, the Moderates and Christian Democrats' reservation, which included a proposal to abolish the special payroll tax for the elderly, was approved. A memorandum was submitted in December 2018 and a government bill in March 2019.
Abolished rules
Parliament has now said yes to the proposal to abolish the special payroll tax of 6.15 percent for the elderly.
Entry into force
The adjustment in the legislation, that the payroll tax for the elderly is abolished, takes effect on 1 July 2019.
For income from business activities, the following applies. If the tax year includes both the period before and after 1 July 2019, and the taxpayer cannot demonstrate otherwise, income shall be apportioned so that income attributable to the period before 1 July 2019 is subject to special payroll tax, and income attributable to the period after 1 July 2019 is not.
For employees, it applies that for remuneration paid from 1 July 2019 onwards, the payer will no longer pay the special payroll tax.
Source: Wolters Kluwer – Tax Information
