As 2023 draws to a close, many taxpayers Ways to pay less tax and reduce personal income tax on your next income tax return. The Ministry of Finance technicians’ association (Gestha) has announced a set of tips that can help you save up to 4,277 euros. These tips are especially valuable for those looking for ways to do this. Learn how to pay less tax and effectively reduce personal income tax.
Who benefits most?
Taxpayers with higher income and assets are the ones who will benefit from more tax benefits and can maximize these benefits in significant amounts. However, deduction opportunities are limited for people with annual income below 21,000 Euros. paying less tax and reducing options Income tax.
Tips to pay less tax and reduce personal income tax
- Buy an electric car or install a charging system: Taxpayers can get a 15% discount on purchasing an electric vehicle or installing a charging point in their home. This is an excellent way to pay less taxes and reduce personal income tax, as well as contributing to the environment.
- Extension of maternity interruption: Working mothers, even those collecting unemployment, can receive significant deductions. This not only helps reduce personal income tax, but also supports families with young children.
- working abroad: Income from work in foreign companies is tax-free up to 60,100 Euros per year. This is an important opportunity for those who want to pay less tax and reduce their personal income tax.
- Donations to NGOs and party and union dues: Deductible contributions allow for a significant reduction in personal income tax while promoting solidarity and social cohesion.
- Contributions to plans pension: Contributing to retirement plans remains an effective way to pay less tax and reduce personal income tax, with limitations that allow taxpayers to better plan for their retirement.
How can low-income taxpayers pay less taxes?
Although opportunities for low-income taxpayers are limited, they still Opportunities to reduce personal income taxhow to benefit state and territorial deductions for rentwhen applicable.
As 2023 approaches, it is of great importance for taxpayers to take these issues into consideration. Tips to maximize your savings. From buying an electric vehicle to donating to charity, there are a variety of ways to pay less tax and reduce personal income tax. These strategies not only benefit the taxpayer’s tax situation, but can also have a positive impact on society and the environment. It’s important to remember that the key to achieving maximum savings on next year’s tax return is to plan ahead and be aware of available opportunities.