Constraints to be imposed where phasing out of employee’s tax credit is concerned
Changes are being made to the employee’s tax credit in exchange for illegality not being criminalised.
With effect from 2015 the phasing out of the employee’s tax credit is to start at an income of approximately 49,000 euros rather than 42,000 euros, which would have been the case had it not been for this adjustment. The employee’s tax credit for 2014 has been capped at 2,097 euros. It starts to decline from an income level of 40,721 euros onwards up to 83,971 euros, from which level onwards a maximum employee’s tax credit of 367 euros applies. Lower maximum amounts apply to those who have reached official retirement age.
By 2017 the phasing out of the employee’s tax credit will cease at an income in the amount of approximately 116,000 euros. A stipulation has been included in the coalition agreement to the effect that entitlement to employee’s tax credit should cease to exist by 2017 from the level of approximately 110,000 euros onwards.