How should the personal statement for salary tax be filled out? - The formula for applying tax deductions for employees changes
The payroll declaration that must be submitted to the tax administration by March 31, 2025, has changed, in function of the new income tax law. Businesses and their employees, current and new, must change the declaration on personal status.
But what is a personal status statement?
Every employee has the right to benefit from a deduction from the taxable value of salary income, of the amounts determined, according to point 1 of Article 22 of the law, only once during a monthly calendar period.
The personal status declaration must be signed by both parties (taxpayer and employee) before the start of the employment relationship or before the first payment of taxable employment income;
In the case where an individual has more than 1 employment during 1 month, the status declaration is submitted to only 1 entity and the deduction is applied only to the payroll submitted by this entity. In the other entity(ies), the calculation of employment income tax will be carried out on the gross salary.
The new payroll will contain a box for the declaration of personal status. This selection (check) allows the deduction of amounts determined depending on the gross salary they have from the tax base. All employers whose employees are employed by only one employer (before 01.01.2025) will automatically have the check box for "Personal Status", but they will keep this check only if the employee and the employer have signed the declaration of Personal Status.
It is a legal obligation that tax deductions will be made by the employer.
In case an individual is employed by more than one employer, the box will not be filled in as the personal status declaration must and can only be selected from one of the employers, which must be determined by the employee himself.
Self-employed individuals are exempt from the declaration of personal status.
The legal changes only affect the form of declaration and income tax, as the progressive tax rates for calculating the tax have not changed, they are 13% and 23%.
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