New Deadline for Exemptions for Employing Entrepreneurs 60 Days from Revocation of State of Emergency

According to the Law on Personal Income Tax, the deadline for acquiring the status of a qualified new employee was April 30, but it has been postponed by the decree on extension of the deadline for acquiring the status and is now 60 days from the revocation of the state of emergency.

This exemption was implemented parallel with the implementation of the Independence Test. The aim was for the employment of former entrepreneurs to be facilitated for companies. The Law thereby envisages for the company not to pay taxes for a qualified new employee, that is, a person who did not have the insured employee status in 2019, and who is employed by April 30 (the deadline has now been moved).

More precisely, 70% of the tax on salaries paid in 2020, 65% for those in 2021 and 60% for those in 2022, is not paid. The company's only obligation was not to reduce the number of employees compared to December 31, 2019. If the number is reduced, the right to exemptions is lost for an equal number of new employees.

Law on Personal Income Tax

decree on extension of the deadline for acquiring the status of a qualified new employee

Independence Test

tax on qualified new employee

status of insured employee