The government this week approved a reduction in personal income tax withholdings for low and medium incomes.
The rule raises the minimum amount to make withholdings from 15,000 euro to 15,876 euro, which will allow those who earn the minimum wage in 2024 not to have personal income tax withholdings on their payroll.
The measure increases the reduction for work income and incomes of less than 22,000 euro will also see their withholdings reduced.
The reduction in personal income tax will benefit 5.2 million taxpayers, both employees and pensioners, with low and medium incomes who will save 1,3 billion euro in withholdings.
This update of the tax, which was also adopted last year, is part of the Government’s fiscal policy of relieving the tax burden on those who earn the least and asking for a greater effort from large assets and multinationals.
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