Law Changes 2021
Minimum wage
From 01.01.2021, the minimum wage does not increase and remains at the 2020 level – EUR 584 per month. Consequently, the minimum hourly rate also remains the same – EUR 3.48 gross.
Social tax minimum
The social tax minimum in 2021 is EUR 192.72. This is the amount that must be paid monthly for employees under employment contracts, and for other contracts, it is the minimum amount required for valid health insurance.
Payroll taxes
No changes in payroll taxes in 2021. Withholdings remain 1.6% employee unemployment insurance (except for management board member contracts), 2% funded pension (if joined), and 20% income tax. Employers pay 33% social tax and 0.8% employer unemployment insurance (except for management board member contracts).
Funded pension law changes
With the adoption of pension reform, people can now decide for themselves whether they want to remain in the II pillar and make contributions or leave it.
- Applications submitted during 01.01.2021-31.03.2021 suspend the 2% contribution from 01.09.2021;
- Applications submitted during 01.04.2021–31.07.2021 suspend the 2% contribution from 01.01.2022;
- Applications submitted during 01.08.2021–30.11.2021 suspend the 2% contribution from 01.05.2022;
- Applications submitted during 01.12.2021–31.03.2022 suspend the 2% contribution from 01.09.2022.
Sick leave compensation 01.01.2021-31.12.2022
To reduce the risk of people working while sick and employees' liability, and thereby limit the spread of COVID-19, the sick leave compensation procedure temporarily changed from 01.01.2021. The employee's liability is the first sick day, the employer pays compensation from the second to the fifth day, and the Health Insurance Fund pays compensation from the sixth day.
4% II pillar contributions resume
On 01.09.2021, the temporary suspension of II pillar contributions ends, which was in effect from 01.07.2020-31.08.2021 for those who submitted the corresponding application.
III pillar pension age changes
In the future, new III pension pillar joiners can retire up to five years before the state pension age. Existing pillar owners retain the option to retire from there at age 55.
Abolition of VAT exemption for postal packages
From July 1, the VAT exemption for imports of packages up to EUR 22 in value ends, and 20% VAT will also be added to cheaper packages from third countries.
EU distance selling rules change (IOSS / OSS special scheme)
From July 1, a general distance selling threshold of EUR 10,000 applies. Up to this threshold, the transaction is taxed with VAT in the seller's member state, and above this threshold in the buyer's member state.
IOSS
The IOSS special scheme applies to imported goods shipments to end consumers in the EU, which at the time of the sales contract are located in a non-EU country, with an actual value not exceeding EUR 150 and not subject to excise duty.
OSS
OSS (One Stop Shop) is the special VAT scheme for services, intra-Community distance sales, and sales of goods through online marketplaces.
The OSS special scheme taxation period is a quarter and the OSS declaration must be submitted by the last day of the month following each quarter:
- Q1 - April 30
- Q2 – July 31
- Q3 – October 31
- Q4 – January 31 of the following year
Tax and Customs Board interest rate
Until the end of 2021, the Tax and Customs Board interest rate discount applies, reducing the current 0.06% daily interest rate by half, so the current daily rate is 0.03%.
Personal protective equipment
Covid-19 was added to the regulation "Occupational health and safety requirements for work environments affected by biological hazards" as a biological hazard, meaning that related expenses are tax-free.
Variable hours agreement in retail
From December 15, 2021, employers operating in the retail sector (EMTAK code G 47) can enter into variable hours agreements with their employees.
Tax information exchange law
Information on cross-border tax schemes must be submitted to the tax authority. According to the tax scheme information exchange directive (DAC6), tax advisors must notify the tax authority of cross-border schemes that enable aggressive tax planning.