Key Tax Changes in 2024
The year 2024 brings forth several additional changes in tax legislation that may be of significance to you as a taxpayer. From increased tax-free allowances to new relief measures for businesses, the upcoming adjustments will impact your financial situation. Let's take a closer look at the key changes ahead.
Basic Allowance and Maintenance Payments: In 2024, the basic allowance is increased by 696 euros to 11,604 euros. This means that employees will pay less income tax. Likewise, the maximum amount for the tax deduction of maintenance payments is raised accordingly to offset the so-called 'cold progression.'
Solidarity Surcharge: The threshold for the solidarity surcharge is raised to 18,130 euros for individual assessment and 36,260 euros for joint assessment starting in 2024. This means that approximately 90 percent of those who previously paid this surcharge will be exempt from it.
Employee Savings Incentive and Employee Participation: In 2024, the income thresholds for the employee savings incentiveare doubled. For singles, the new threshold is 40,000 euros, while for jointly assessed married or partnered individuals, the threshold is 80,000 euros. This regulation applies to both the investment of savings benefits in financial participations such as investment funds and for housing-related uses such as building savings.
Furthermore, the tax-free allowance for employee participation in the employer's company is increased from 1,440 euros to 2,000 euros. This means that employees can now receive up to 2,000 euros tax-free in employee participation, providing an attractive opportunity to participate in the company's success.
Child Allowances: The child allowances are increased by 360 euros to 9,312 euros.
Electricity Tax Relief: Companies engaged in manufacturing, agriculture, or forestry receive an electricity tax relief of 20 euros per megawatt-hour when they use electricity taxed at the standard rate for operational purposes
Conclusion:
The tax changes for the year 2024 bring a range of benefits for both employees and businesses. From increased tax-free allowances to relief from the solidarity surcharge, it is worthwhile to keep an eye on these changes and potentially benefit from the new regulations. And this is just a snapshot of the many changes that the new year brings. It is advisable to stay informed about all relevant developments early on to make the most of financial advantages