The most important changes to taxation in 2017, at a glance.
There are so many innovations that occur every year in tax law, making it is very easy to quickly lose track. For example, how much are the allowances for the year 2017? What can be applied to income-related expenses? Here you will be able to find everything that you need to know, explained in a straightforward and uncomplicated way.
Increased lump sums for relocation expenses
People who change their place of residence for work will now benefit from a higher lump sum. This is, from the 1st February, 764 €. Single parents and married couples can spend as much as € 1,528. For each additional person living in the household, there is an allowance of 337 €.
Child benefit increase and a higher rate of child allowance
Those who earn very little often cannot take advantage of the child allowance. Child benefit, on the other hand, is available to everyone. This was increased in 2017 to 192 € for the first and second child. For the third child it is now 198 € and thereafter, for each additional offspring, 223 € per month will be allowed.
Since 2017 you can invest more money in your private pension. In fact, up to € 23,362 can now be paid by the employee and this payment is tax-free. That’s at least 600 € more compared to last year, helping to make a comfortable, potentially early, retirement a significant possibility.
The basic allowance that is exempt from income tax was raised to € 8,820 in 2017. Those who earn above this amount must, of course, pay taxes on that part of their income. In 2018, the basic allowance is to be increased to € 9,000. Married people can benefit from twice the amounts shown due to the joint taxation that is allowed within their tax returns.
Child tax credit
The child allowance has also been increased in 2017. This now amounts to € 7,356 and will continue to increase, until 2018, to € 7,428. This child allowance will help to reduce the taxable annual income. As you are a parent, the tax office that is responsible for your returns will automatically check your eligibility, in order to ascertain which you are entitled to claim for - the child allowance or the child benefit.
People with disabilities
There is also positive news in this respect. Since 2017, disabled people no longer have to prove their disability each year. From now on, only the degree of disability has to be registered. If the level of disability changes in any way, this must be communicated to the tax office.
Positive news for environmentalists. If you buy an environmentally friendly electric car, you do not have to pay any vehicle tax for 10 years.
Proof is relaxed
First and foremost, the bureaucracy has been reduced, making it easier for many. However, if the taxman still wants to see important proof, this must be submitted upon request. Failure to do so could incur costs which may not be otherwise taken into account. In technical jargon, the document submission requirement thus becomes a document retention requirement.
This is just one more reason to file your tax return with us. It only takes a few minutes and the income tax return is deductible. You will be able to submit your returns electronically and send them signed to the relevant office. Then sit back and wait for your tax assessment and look forward to hopefully receiving a nice surprise in the form of a tax refund.