In 2018, basic exemption per month will be increased to EUR 500.
The following subsidies and benefits paid by the Unemployment Insurance Fund are subject to income tax:
- Unemployment insurance benefit
- Redundancy benefit
- Employer's insolvency benefit
- Commuting benefits
- Support for continuation of employment
- Mobility benefits
The rest of disbursements made by the Unemployment Insurance Fund are not taxed, for example:
- Working ability allowance
- Unemployment allowance
- Travel and accommodation allowance etc.
In order for us to be able to calculate basic exemption, the client must submit an application for basic exemption to the Unemployment Insurance Fund. The application form can be found at the following link: application for basic exemption.
When submitting and application, it will apply to all subsidies and benefits received from the Unemployment Insurance Fund. If, for example, an application has already been submitted when applying for an unemployment insurance benefit, then no other application is required when receiving other subsidies and benefits.
The Unemployment Insurance Fund takes the basic exemption into account no later than the month following the submission of the application. Income tax is not recalculated for subsidies and benefits that have already been paid.
The application is valid as long as no application for amendment or termination of the application has been submitted.
Additional information about calculating basic exemption: