From January, the child benefit will be reduced and fewer parents will receive it. In addition, the percentage of the bonus will be adjusted according to the number of children. For one child, the bonus will increase from the current 20% to 29% of the partial tax base, for three children from 34% to 43% and for six or more children to 64% instead of the current 55. The bonus will be reduced by one tenth of the difference between the partial tax base and the threshold if income exceeds 1.5 times the average annual wage.
The tax bonus can be claimed up to EUR 100 for a child under the age of 15 and up to EUR 50 for a child aged between 15 and 18.
Miriam Bellušová, the Secretary General of the Slovak Craft Industry Federation, said the change in the rules would not have a major impact on the amount of the bonus for the majority of entrepreneurs. A sole trader's partial tax base is annual income, from which actual or lump-sum expenses (60%) and health and social security contributions are deducted.
"The application of the tax bonus will result in either a reduction in tax liability or an overpayment of tax, i.e. the sole trader will either pay the tax reduced by the tax bonus or receive a so-called tax refund on his bank account approximately two months after filing the tax return".
The Finance Ministry responded that the tax bonus has been fixed by law since it came into force so that from 2025 its amount will be automatically reduced. Spokesperson Pavol Kirinovič.
"While the original parameters favoured parents on higher incomes, the new settings will make the full bonus more accessible to low-income groups. Unlike the original bonus settings, full entitlement will start at around half the minimum wage. From a gross salary of €2,477, the bonus will gradually decrease and will not be paid at all from an income of €3,458 per year".
The tax bonus for children over 18 will be abolished. This is part of the consolidation package. Only those earning less than €2,400 per month gross will receive the maximum bonus.
Source: Rádiožurnál, Slovenský rozhlas
