Personal Income Tax exemption on balance sheet bonuses paid in 2024

Key aspects

• The exemption applies to balance sheet bonuses paid to employees in 2024 for profits made in 2023 or previous years;
• The exemption only applies if there is a salary increase of at least 5% for all employees;
• The comparison will be between the salaries on December 2024 and on December 2023;
• The PIT exemption limit for each employee is equivalent to one fixed monthly remuneration capped at five times the national minimum salary, i.e., €4,100.00;
• The procedure for correcting any tax withheld on balance sheet bonuses paid in 2024, prior to the issuance of the Letter, remains to be clarified.