Birth rates and family sizes all over Europe are shrinking The total fertility rate is currently less than two children per woman in every EU country. According to the United Nations, the population in the European Union is expected to drop from 446 million to 365 million by 2100. To put this into perspective, that’s almost a 20% drop in roughly 3 generations.
How can we avoid a demographic crisis?
One of the key factors in the functioning of the economy is the balance between tax and non-taxpayers. If there is not an appropriate balance between these two groups, the government must find a way to raise the necessary funds from somewhere to support the non-taxpayers. However, if the government decides to raise taxes to achieve financial balance, this could lead to immigration. This may make the situation even worse. All this can be avoided unless there is a demographic crisis.
This is not entirely new information, and most, if not all, EU countries are doing everything they can to avoid the UN forecast. For this reason, it has never been more financially advantageous for a parent to be employed on a Slovak employment contract.
The amount provided keeps growing and growing.
The amount given to parents as tax relief is doubled within 12 months. From the beginning of 2022, the amount of €47.14 for a child under 6, €43.60 for children aged 6 to 15 and €23.57 for children over 15 has been provided. Since the beginning of July, the tax relief for parents with children under 15 has reached an all-time high – currently €70 and €40 for children over 15. That’s a staggering increase – up to 41%, and that’s not all!
From the beginning of 2023, the tax relief will be €100 for children under 15 and €50 for children over 15 . This is more than double the amount provided until the beginning of 2022, regardless of the age of the child. What does this mean in practice? Let’s say you have one child under 15 and one child over 15 who is still at school. As long as you meet the employment criteria and have a high enough taxable income, you will receive €110 each month until the end of the year and €150 each month in 2023.
That’s €1,800 for the whole year 2023 on top of your regular salary! Imagine how much you can do for your children’s future with that amount of money. You can help them enroll in their dream university, and you can pay for the cost of extracurricular activities so they can develop further in an area that interests them. Or, you can completely pay for a dream vacation you couldn’t otherwise afford and create priceless memories with the ones you love.
How does it work and how can we apply?
Of course, as this is a tax relief, it is also based on the taxable amount of your salary. The amounts shown are amounts you will only get if the amount of tax relief is half or more than half the taxable amount. The exact percentage depends on the number of children and is as follows: 20% for 1 child, 27% for 2, 34% for 3, 41% for 4, 48% for 5 and 55% for 6 or more children.
And of course, we need to know how to apply for tax relief. To get the tax relief, you must fill in the required form, submit the birth certificate of the child or child for whom you are the legal guardian, and, if applicable, proof of school attendance. If you choose to receive the amount monthly rather than annually, you should get confirmation from your employer and have it shown on your next payslip. Feel free to contact us for more information or to apply for tax relief if you don’t already receive it.
